Annual Report 2011

Ministry of Women’s Affairs
Annual Report
For the year ended 30 June 2011

Click HERE for a PDF [1.7 MB] version of the Annual Report 2011, or EMAIL me with your postal address if you would like a hard copy sent to you.  

 

Table of Contents 

Part 1 Overview
Chief Executive’s overview
Our highlights

Part 2 Performance against Output Plan
Output 1: Policy advice – Women in leadership
Output 2: Policy advice – Violence against women
Output 3: Policy advice – Women and employment
Output 4: Management of international obligations
Output 5: Ministerial servicing

Part 3 Performance
Statement of responsibility
Statement of objectives
Statement of service performance
Statement of comprehensive income
Statement of financial position
Statement of movements in taxpayers’ funds
Statement of cash flows
Reconciliation of net surplus (deficit) to net cash from operating activities
Statement of commitments
Statement of contingent liabilities and contingent assets
Statement of departmental expenses and capital expenditure against appropriations
Statement of departmental unappropriated expenditure and capital expenditure
Statement of accounting policies
Notes to the financial statements
Audit report

Part 4 Capability
Managing the Ministry

 

Part 1 Overview

Chief Executive’s overview

During the last year we continued to work on our priorities of increasing women’s economic independence; increasing the number of women in leadership; and enabling women to lead secure lives, free from violence.

This year we put additional focus onto private sector governance to increase the participation levels of women in governance roles. Our actions were supported by evidence showing a positive relationship between women on boards and better financial performance. Our leadership on this issue has led to a number of organisations actively addressing diversity of their boards and championing for change. Our private sector strategy builds on the successful service we provide to the state sector in recruiting women for boards and committees.

Our new online assessment tool prepares women for governance roles. It enables women to assess their governance skills and receive tailored advice about the best governance roles for them. By better matching women’s skills and competencies with the roles on offer, the end result will be more successful appointments and, in the longer term, more women in governance roles.

Our domestic progress provides us with good standing on the international stage. In late 2010 the Minister of Women’s Affairs reported on New Zealand’s obligations under the United Nations Convention on the Elimination of All Forms of Discrimination against Women (CEDAW). This four-yearly report card showed New Zealand has made good progress on gender equality. It highlighted that more work is needed to eliminate the remaining barriers to women’s full participation in society and the economy, key areas of focus for the Ministry.  

Following the February Canterbury earthquake, we had an immediate role in facilitating services to support women’s well-being and we will be promoting the continuing role of women in the re-building and re-establishment of Christchurch communities.
During the year I reviewed our agency to ensure we had the right structure and roles to increase our effectiveness and impact. This resulted in a shift in resources from administrative and support services to high priority policy development.  Our efficiency indicators now match those of much larger departments.

I also asked for the Ministry to be included in the central agencies’ Performance Improvement Framework so we could identify areas where we were doing well and the areas where more improvement was needed. The results, available in the next financial year, will assist us to remain cost-effective and fit for purpose.  

I am proud of what we have achieved during the year and pleased that external feedback so far has shown a significant improvement in the quality of our policy analysis and advice. We will continue to review what we do and improve our organisational effectiveness. 

In our work I have been supported by staff and our partners, from government, non-government agencies, community organisations and the private sector. I thank you for helping to achieve progress towards better outcomes for women in New Zealand.

Rowena Phair
Chief Executive

Our highlights

Women in employment

The Ministry is committed to ensuring that women are able to use their skills and talents. The Ministry undertook a number of initiatives to support women in employment. 

We commissioned a report on converting women’s skills to employment which forms part of an initial assessment of why the improved education success of women is not transferring into widely improved labour market success.

We worked with the Ministry of Education to explore the income differences of men and women after tertiary education using the Employment Outcomes of Tertiary Education dataset.  The study analysed the differences in income between men and women who left study at the end of 2003 and who graduated with different levels of tertiary qualifications.  The study confirmed that women earn less than men at all levels of qualification and this income gap increases over time. 

Occupational segregation is a key reason for the gender pay gap, and the Ministry has continued to work on improving women’s representation in male-dominated and trades occupations.  We worked with the Institution of Professional Engineers New Zealand to develop a plan to improve the number of women in engineering and with the Electricity Supply Industry Training Organisation on the Women in Power project, which has seen an increase in the number of women training in the electricity supply industry.

We continued to support women in trades and emerging industries, with the implementation of a Women in Trades Network in Auckland, and supporting the ongoing success of the Network in Wellington. These networks support and mentor women in trades, and encourage and support more women into these occupations.  

Research is critical to understanding the employment market. We undertook research with tradeswomen and their employers to find out what works to encourage women into working in trades. We also commissioned research exploring whether gender segregation is present in emerging industries, by surveying the Deloitte’s 50 fastest growing companies in New Zealand.  

We have a critical role in providing advice on broader policies impacting on employment. During the year we provided policy advice on issues such as flexible working arrangements, childcare, welfare reform, and on the potential effects of the Canterbury earthquakes on women’s employment.

Increasing women in leadership positions
Women’s leadership skills and experience continued to be significantly under-utilised across the New Zealand economy. We put additional focus onto private sector governance to increase the participation levels of women in governance roles. Our goals were to assist women to become board-ready and to influence decision-makers to address the issue of women on boards.

We implemented new web-based resources for women interested in preparing for, and finding, governance roles. This new tool allows women to identify their board strengths and competencies, giving them guidance on the roles that are suitable for them and, ultimately leading to more successful placements.

We worked with stakeholder organisations to stimulate a range of complementary programmes to encourage stakeholders to influence change within their networks. Evidence showing a positive relationship between women on boards and better financial performance provided momentum for this engagement and the development of new initiatives. During the year Chartered Secretaries New Zealand, the Institute of Directors and the Trans-Tasman Business Circle implemented new initiatives to promote and encourage women into leadership positions. 

We continued to identify and promote a pool of experienced women directors as potential candidates for state sector boards and committees. With women’s participation on these boards remaining stable at around 40 percent, the Ministry concentrated its efforts on statutory boards where women are under-represented, such as state-owned enterprises, Crown financial institutions and Crown entities.

 

Elimination of violence against women

Family violence and other forms of violence where women are the victims continued to be issues of concern to the Ministry.  Our focus has been to provide advice on ways to improve safety from violence for women, including managing risk factors such as alcohol use (for example, through input to the Alcohol Reform Bill), improving responses to violence and preventing revictimisation.

We have a unique role in providing a cross-portfolio approach and gender perspective to these complex social issues. We continued to influence key decision-makers and stakeholders with evidence and practical solutions to reduce violence against women and its impacts. 

In particular, we have worked on providing evidence of what is effective to restoring victims to functioning lives. The Ministry was involved in cross-agency work to summarise current knowledge on effective treatment and service delivery for diverse groups of women; and a review of overseas models for the delivery of sexual violence services. 

We have actively supported the Taskforce for Action on Violence within Families and had input into a range of government reviews including victims’ rights and the review of the Family Court.

 

International leadership

New Zealand continued to rank well internationally for its progress on gender issues.  In the latest Global Gender Gap Report, New Zealand was ranked fifth in the world, behind the Scandinavian countries and 18 places above Australia, which was rated 23rd. 

As a result of New Zealand’s strong reputation in the area of gender equality, the Ministry was asked by the OECD to assist with a gender review project in the United Arab Emirates. In November 2010 the Ministry worked with the OECD to provide advice to the United Arab Emirates on improving gender equality. The cost of our involvement was met in full by the United Arab Emirates.

In December 2010 the Minister of Women’s Affairs reported on New Zealand’s obligations under the United Nations Convention on the Elimination of All Forms of Discrimination against Women (CEDAW). This is a four-yearly report card which assesses New Zealand’s progress on advancing the status of women.

The report showed that New Zealand has the fundamentals in place for equal rights and has made particular progress in areas such as education and the pay gap since the last CEDAW report. The report identified that more progress is needed in addressing the remaining barriers to women’s full participation in the economy and society, and reducing sexual violence and family violence. 

In March 2011 the Ministry led the New Zealand Government Delegation to the 55th session of the United Nations Commission on the Status of Women in New York. The meeting provided opportunities to make connections and contribute to international discussions on gender equality issues. As part of our visit, we hosted a very successful event on the topic of ‘Access to education equals success in employment?’. This seminar was well attended and was well received by the delegates.

 

Looking forward

The Ministry is strongly focused on ensuring women have greater economic independence, increasing the number of women in leadership across the economy and enabling women to lead secure lives, free from violence. To do this we need to make the best use of available resources and continue to work with our partners and stakeholders to bring about positive change.

Our coming work programme focuses on activities to improve outcomes for women, which also have positive benefits for the economy and wider society.

• 41.5 percent of people on state sector boards and committees are women.
• 9.3 percent of directors on the NZX top 100 listed companies are women. 57 percent of NZX top 100 companies have no women directors.
• By international standards women aged 30 to 34 have a low labour force participation rate. We are 24th in the OECD for this age group.
• One percent of plumbers, builders and electricians are women.
• New Zealand is ranked 5th out of 134 counties in the Global Gender Gap Report 2010.
• One in three women has experienced violence by a partner in their lifetime.
• New Zealand’s pay gap between men and women is the third lowest in the OECD.

 

Part 2 Performance against Output Plan

 

Ministry of Women’s Affairs

Performance against Output Plan

 

For the year ended 30 June 2011

At the beginning of the financial year, the Minister and the Chief Executive agreed an Output Plan. It comprised the detailed outputs to be delivered, the link to the outcomes in the Statement of Intent, and the performance measures and standards.

Outputs for 2010/11 covered:

• Policy Advice – Women in leadership   
• Policy Advice – Violence against women   
• Policy Advice – Women and employment   
• Management of international obligations   
• Ministerial servicing

The achievements against targets for each output are described in Outputs 1 to 5 following.

Ministry of Women’s Affairs

Output 1: Policy advice – Women in leadership

For the year ended 30 June 2011
Outcome Sought

Description:	Women participating in leadership roles across the economy.
Impacts:	Improved decision-making, governance practices, and business performance across the economy. More women in leadership roles across the economy. Increased participation of women on state sector boards and committees.

The focus will be on the promotion of women to state sector boards and committees, influencing private sector practices, and broader leadership opportunities.

2010/11 Output Objectives	2010/11 Achievements
Provide suitable women nominees for appointment to state sector boards and committees.	We responded to all nominations requests from government departments, and provided suitable women nominees where appropriate. The nominations were targeted to the specific vacancy and provided within the agreed timeframe. We tailored our nominations services to meet the specific requirements of requesting departments.
Support target groups of women to develop their governance careers by providing relevant information, advice and feedback.	We launched a new online Women on Boards governance section, which provides extensive information and advice for current and prospective women directors. The site includes ‘My Board Strengths’, an interactive self-assessment tool that gives tailored feedback and advice to women on developing their governance competencies and targeting board roles that fit their skills and experience. We gave presentations on women in leadership to groups of women lawyers, accountants and other aspiring women directors. The presentations included advice on how to create a personal strategy to develop governance experience. We provided individualised governance career advice to over 50 women directors.
Collect and report on whole-of-government statistics on women’s representation on state sector boards and committees for the 2009 calendar year.	We completed the gender stocktake of state sector boards and committees for the 2009 calendar year. The stocktake results were analysed and disseminated to Ministers and officials. The results were posted on the Ministry’s website and published in the Human Rights Commission’s New Zealand Census of Women’s Participation 2010.
Stimulate and support initiatives by private sector partners that enable women to contribute their leadership skills.	Ministry staff worked with stakeholder organisations to stimulate a range of complementary programmes, and to encourage stakeholders to influence change within their own networks and spheres. Chartered Secretaries New Zealand (CSNZ) became an active partner, with CSNZ events and newsletters devoted to promoting increased women’s participation on boards as good governance practice. We worked with the Institute of Directors in New Zealand on establishing of a mentoring programme for women directors. We worked with Trans-Tasman Business Circle on a major business event focused on women in leadership.
Provide policy advice on women in leadership.	We presented a strategy and work plan to increase women’s participation on private sector boards, by stimulating NZX and other stakeholders into leadership roles on this issue. The first two phases of the work plan were successfully implemented, leading up to a major business event on women in leadership, to take place in August 2011. We organised the Minister’s two-day visit to Australia to meet the architects of the current increase in women’s participation on ASX 200 boards. The findings of the visit were widely disseminated to stakeholders, media and women’s organisations. We completed a review of business case evidence linking women’s participation on boards and corporate performance, and disseminated it to stakeholder organisations and selected media. The business case evidence has been used and referenced by a number of stakeholders in their own publications.

Ministry of Women’s Affairs

Output 2: Policy advice – Violence against women

For the year ended 30 June 2011
Outcome Sought

Description:	The damaging impact of violence against women, in particular sexual violence, is reduced.
Impacts:	Lower tolerance and increased reporting of sexual and domestic violence. Victims of violence are restored to well-being as fast and effectively as possible. Services and service delivery are based on evidence of what works. Friends and family are equipped and knowledgeable to get help and support for victims.

Contribution of the Ministry this year

Work will focus on providing a victim-centred perspective and evidence of what is effective for victims.

2010/11 Output Objectives	2010/11 Achievements
Follow through on our 2009 research on effective interventions for adult victims of sexual violence to articulate across government agencies and providers.	Ministry staff presented and disseminated findings from the 2009 sexual violence research in a range of forums. These included the New Zealand Police Research Symposium, the Australian and New Zealand Society of Criminologists, the Association of Non-Governmental Organisations of Aotearoa and the 4th Annual Northern Regional Symposium on Working with Sexual Violence.
Produce evidence of what is effective to restore victims to functioning lives – a combination of policy and research that stands alone as Ministry advice that can be drawn on by others.	We were actively involved in cross-agency work following on from the government response to the Taskforce for Action on Sexual Violence. We summarised current knowledge on effective treatment and service delivery for diverse groups of women, and carried out a review of overseas models for the delivery of sexual violence services.
Provide policy advice and support to wider government and community efforts on family violence, including continuing to govern the combined community and government response to family violence through membership of the Taskforce for Action on Violence within Families.	We supported the Taskforce for Action on Violence within Families, in particular providing advice on overseas gender-based approaches to family violence. We provided advice on a range of government initiatives including reviews of victims’ rights, the provision of legal aid, and the Family Court.
Provide occasional niche expertise and broader portfolio advice particularly in areas where there are current gaps such as examining the issues relating to intimate partner violence in ethnic communities, and resilience in young Māori.	We worked with the Centre for Social Research and Evaluation to complete case study research on community initiatives addressing family violence that work well in refugee and migrant communities. We also published a report on what is known about young Māori in relation to resilience and sexual coercion entitled Sexual Coercion, Resilience and Young Māori: A scoping review.

Ministry of Women’s Affairs

Output 3: Policy advice – Women and employment

For the year ended 30 June 2011

Outcome Sought

Description:

All women can be fully engaged in the economy and contribute to the country’s economic growth, through tackling the pay and employment gap.

Impacts:

More young women in less traditional careers, particularly trades where there are shortages. A gender-neutral culture in emerging and future trades. Women who work in flexible and part-time roles are able to progress in their careers. Post-graduate income differences between men and women narrow. Careers pathways are created for low-paid occupations, so that women can move out of precarious and very low income jobs.

Contribution of the Ministry this year

Work will be innovative, outward-focused, and leadership-based. It will assist and encourage different sectors to remove barriers where they exist, and provide the evidence to promote and highlight exemplars.

2010/11 Output Objectives	2010/11 Achievements
Develop and promote the link between increasing New Zealand’s productivity and better utilisation of women’s skills in the marketplace.	We compiled a comprehensive database of evidence from overseas to illustrate the link between increasing the utilisation of women’s skills and increased productivity. We produced policy advice on converting women’s skills to employment. This advice provided an initial assessment of why the improved education success of women is not transferring into widely improved labour market success. This advice will be used for further policy development.
Develop and promote the business case for flexible work in different sectors of the economy.	We worked with the New Zealand Institute of Chartered Accountants to promote the Ministry’s research, Workplace Flexibility in the Accounting Sector, within the accounting sector, including disseminating information to the sector on flexible work practices We compiled business cases and identified tools that have been developed within New Zealand that support the case for flexible work and we participated in a Department of Labour-led review of Flexible Working Hours employment legislation.
Undertake research to understand the reasons for the pay gap between graduates within the same fields of study, and then work directly with universities and the graduates themselves to increase awareness.	The Ministry is supporting an ongoing longitudinal survey of graduates across New Zealand, being carried out by the New Zealand Centre for Life Course Research on behalf of all the universities in New Zealand We worked with the Ministry of Education to explore the income differences of men and women after tertiary education using the Employment Outcomes of Tertiary Education dataset. The study analysed the differences in income between men and women who left study at the end of 2003 and who graduated with different levels of tertiary qualifications. The study confirmed that women earn less than men at all levels of qualification and this income gap increases over time. We received the first stage of research on how emerging industries may provide further opportunities for female employment. This quantitative assessment included the gender composition of the owners, management and staff within each part of the business. The research will be followed up with a qualitative assessment at the beginning of the next financial year.
Continue work to increase the number of women in trades and emerging industries and to keep women in trades through the development of networks.	We continued to work on improving women’s representation in male-dominated and trades occupations. The Ministry supported the development of Women in Trades Networks in Auckland (including the launch of the inaugural meeting) and in Wellington. We also hosted a Women in Trades hui, providing an opportunity for organisations involved in initiatives to attract and retain women in trades, to network and share experiences and ideas. We worked with the Institution of Professional Engineers New Zealand to develop a plan to improve the number of women in engineering, and with the Electricity Supply Industry Training Organisation on the Women in Power project, which has seen an increase in the number of women training in the electricity supply industry. We commissioned research exploring whether gender segregation is present in emerging industries by surveying the Deloitte’s 50 fastest growing companies in New Zealand. We presented to the CATE (Careers Advisors and Transition Educators) Conference on what career advisors and schools can do to improve the number of women in trades, and why this is important. We interviewed employees and employers representing the creative, plumbing and motor industries, to identify what employers can do to attract and retain women in trades. We also worked with Career Services to develop website profiles of women in non-traditional occupations and provided input into delivery of career education and guidance for young people.
Provide policy advice in relation to broader policies impacting on employment, including reactive work and contributory policy advice to other agencies.	We provided policy advice to the Government for its Welfare Working Group. In particular we provided a submission on the policy paper, Reducing Long-Term Benefit Dependency: The Options, with a specific focus on a sub-group of sole parents. We also advised on the Government’s response to the Welfare Working Group’s February 2011 recommendations. We provided a submission to the Early Childhood Education (ECE) Taskforce on the ECE as potentially improving education outcomes as well as supporting parental employment We completed a stocktake of women’s participation in Science, Engineering, Technology and Maths (STEM) education at secondary and tertiary level. Following the Canterbury earthquake in February, we responded with advice and actions to assist women in the area. We gave advice on the potential effects of the Canterbury earthquakes on women; participated in and contributed a women’s policy perspective into workshops to develop recovery strategies; and proposed the launch of a Women in Trades Network in Christchurch to support the recovery effort and encourage and support women in trades. We provided comments on a range of other government policy initiatives affecting women, including housing, child support, at-risk children, and income sharing (for tax purposes).

Ministry of Women’s Affairs

Output 4: Management of international obligations

For the year ended 30 June 2011

Outcome Sought

Description:	Government policy that aligns with international obligations to improve the status of women.
Impacts:	New Zealand is fully compliant with its international obligations to improve the status of women.

Contribution of the Ministry this year

Managing New Zealand’s international obligations on the status of women and the process of reporting on New Zealand’s obligations under the United Nations Convention on the Elimination of All Forms of Discrimination against Women (CEDAW).

2010/11 Output Objectives	2010/11 Achievements
Prepare New Zealand’s seventh report to the CEDAW Committee and support the Vote Minister to present and respond to any issues raised by the Committee.	New Zealand’s seventh report to the CEDAW Committee was submitted to the United Nations. This four-yearly report card to the United Nations showed New Zealand’s progress in gender quality and identified areas where more progress is needed. The report showed that New Zealand has the fundamentals in place for equal rights and has made particular progress in areas such as education and the pay gap since the last CEDAW report. The report also identified where more progress is needed, especially in addressing the remaining barriers to women’s full participation in the economy and society, and reducing sexual violence and family violence.
Participate in and support ministerial attendance at other international meetings, such as the United Nations Commission on the Status of Women (CSW).	The Minister of Women’s Affairs and the Ministry’s Chief Executive attended the APEC Women Leaders’ Network Meeting in Japan in September 2010. The Ministry also attended the Women’s Advisers Meeting that precedes the Commonwealth, State, Territory and New Zealand Ministers’ Conference on the Status of Women (MINCO). The Ministry led the New Zealand delegation to the 55th session of the United Nations Commission on the Status of Women. In November 2010 the Chief Executive participated in an OECD-led peer review of advice on improving gender equality within the United Arab Emirates.

Ministry of Women’s Affairs

Output 5: Ministerial servicing

For the year ended 30 June 2011
Outcome Sought

Description:	High quality and timely advice is provided on all issues requested by the Vote Minister.
Impacts:	The Vote Minister is fully satisfied with the services and support provided by the Ministry. The Vote Minister is supported to meet her legislative and accountability requirements.

2010/11 Output Objectives	2010/11 Achievements
Ministerial support services will be provided as required: • draft replies to ministerial correspondence (Estimated 70) • draft responses to parliamentary questions (Estimated 35) • draft media releases, speech notes and speeches. (Estimated 40)	41 draft replies were provided. (2010: 40 draft replies) 129 draft responses were provided. (2010: 78 draft responses) 34 draft media releases, speeches and speech notes were provided. (2010: 32 speech notes and background material)
Responses will be provided to requests under the Official Information Act 1982. (Estimated 10)	12 responses were provided. (2010: 16 responses)
Responses will be provided to information requests including email, telephone and written correspondence. (Estimated 500)	711 responses were provided. (2010: 482 responses)
Reports on work progress, emerging issues and portfolio activities will be completed fortnightly. (Estimated 20)	22 reports on work progress, emerging issues and portfolio activities were completed. (2010: 23 status reports on progress and emerging issues)
Advice on upcoming Cabinet papers will be completed each week. (Estimated 25)	30 papers providing advice on upcoming Cabinet papers were completed. (2010: 24 upcoming Cabinet paper reports)
Specified reporting deadlines as agreed between the Minister and the Chief Executive will be met. Any variances will be agreed and recorded at quarterly intervals. (100 percent)	Specified reporting deadlines, as agreed between the Minister and the Chief Executive, were either met or explicit variations were agreed with the Minister through the quarterly reporting process. (2010: All reporting deadlines were met or explicit variations agreed.)
Nominations will meet the deadlines agreed at the time of request with the originating agency or Minister. (100 percent)	100 percent within the deadline of the originating agency or Minister. (2010: 100 percent within the deadline)
Draft responses to ministerial correspondence will be provided within 20 working days of receipt of the correspondence. (100 percent)	100 percent within 20 working days of the receipt of the correspondence. (2010: 100 percent within 20 working days)
Draft responses to parliamentary questions will be provided within specified reporting deadlines. (100 percent)	98 percent within specified reporting deadlines. (2010: 100 percent within 20 working days)
Draft media releases, speeches and speech notes will be provided within specified reporting deadlines. (100 percent)	100 percent within the specified reporting deadlines. (2010: 96 percent within the deadline)

Part 3 Performance

Ministry of Women’s Affairs

Statement of responsibility

 

For the year ended 30 June 2011

In terms of the Public Finance Act 1989, I am responsible, as Chief Executive of the Ministry of Women’s Affairs, for the preparation of the Ministry’s financial statements and statement of service performance, and for the judgements made in them.

I have the responsibility for establishing and maintaining, and I have established and maintained, a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting.

In my opinion, these financial statements and statement of service performance fairly reflect the financial position and operations of the Ministry for the year ended 30 June 2011.

Rowena Phair                                                                      Gerald Scanlan
Chief Executive                                                                 Manager, Business Support
30 September 2011                                                             30 September 2011

Ministry of Women’s Affairs

Statement of objectives

For the year ended 30 June 2011

The Ministry of Women’s Affairs agreed to provide output services in 2010/11 that meet the requirements of its Vote Minister in terms of their nature, timeliness, quality and quantity specifications, and cost.

The Ministry has one output expense – policy advice and nomination services:

• Policy advice on improving outcomes for women in New Zealand, nomination services, the management of New Zealand’s international obligations related to the status of women, and associatedministerial support.

Ministry of Women’s Affairs

Statement of service performance

For the year ended 30 June 2011

Output expense: Policy advice and nomination services

The Ministry provided advice to enable government to ensure women have real choices and use their strengths to maximise social and economic success. This included:

• providing policy advice and interventions on issues that impact on women
• providing suitable women nominees for appointment to state sector boards and committees
• managing New Zealand’s international obligations in relation to the status of women
• providing support services to the Minister.

Quantity:

Performance measure and target	Actual
Written briefings, reports and other updates will be provided on all policy issues requested by the Vote Minister and other policy issues as appropriate. (Estimated 180)	189 written policy briefings, reports and responses to information requests by the Vote Minister were provided. (2010: 73 written policy briefings and responses to information requests) 71 additional written policy briefings, reports and updates were provided. (2010: 67 additional written policy briefings)
Responses will be provided on all requests for nominations to state sector boards and committees. (Estimated 220)	283 responses were provided for nomination requests. (2010: 245 responses to nomination requests)

Quality:

The Ministry provided policy advice and nomination services, and related ministerial servicing, in accordance with the following quality standards.

Performance measure and target	Actual
Provision of a comprehensive policy service, as rated by the Vote Minister on a quarterly basis. A comprehensive policy service includes: • the delivery of an agreed policy work programme • the capacity to respond urgently • written and oral briefings on significant issues that are timely, clear and succinct • support for the Minister to fulfil her role in meeting New Zealand's international obligations, and as required in Cabinet Committees and in the House. (Rated as ‘meeting requirements’ or better in all the Vote Minister’s quarterly feedback questionnaires.)	The Vote Minister’s quarterly feedback questionnaires rated her satisfaction as ‘more than met requirements’ in the second quarter, ‘met requirements’ in the third quarter and between ‘met requirements’ and ‘more than met requirements’ in the fourth quarter. No feedback was provided in the first quarter. (2010: The Vote Minister’s quarterly feedback rated her satisfaction as ‘more than met requirements’ in the first, third and fourth quarters, and between ‘met requirements’ and ‘more than met requirements’ in the second quarter.)
The quality of written policy papers to the Vote Minister, as assessed by an external reviewer on an annual basis. (Mean score of 8 or better.)	The New Zealand Institute of Economic Research (NZIER) completed a review of the quality of the Ministry’s written policy advice. The mean score of the papers assessed was 7.9 out of 10. (2010: NZIER completed a review of the quality of the Ministry’s written policy advice. The mean score of the papers assessed was 7.5 out of 10.)
Provision of an effective nominations service, as assessed by key appointing agencies on an annual basis. An effective nominations service ensures that all nominations for appointment to state sector boards and committees are: • targeted to the vacancy (i.e. all nominees broadly meet the criteria required for membership of that particular board or committee) • provided within the agreed timeframe • accompanied by relevant information to assist the appointment decision (e.g. a profile summary and recent curriculum vitae).	100 percent of key appointing agencies rated their satisfaction with the Nominations Service as ‘met requirements’ or higher. 100 percent of key appointing agencies rated their satisfaction with the Nominations Service ‘met requirements’ or higher.)

Cost:

Outputs in this class were provided at an appropriation cost of $4,717,000 excluding GST compared with the appropriated sum of $5,007,000 excluding GST.

Revenue and costs are shown below.

2010 Actual			2011 Actual	Main Estimates	Supp Estimates
$000			$000	$000	$000
	Revenue
4,603	Revenue Crown		4,875	4,525	4,876
102	Departmental revenue		131	110	131
153	Other revenue		-	-	-
4,858	Total revenue		5,006	4,635	5,007
4,787	Expenses		4,717	4,635	5,007
71	Surplus/(deficit)		289	-	-

 

Ministry of Women’s Affairs

Statement of comprehensive income

For the year ended 30 June 2011

2010 Actual	Note		2011 Actual	Main Estimates	Supp Estimates
$000			$000	$000	$000
	Revenue
4,603	Revenue Crown		4,875	4,525	4,876
102	Departmental revenue	1	131	110	131
153	Other revenue	2	-	-	-
4,858	Total revenue		5,006	4,635	5,007
	Expenses
2,981	Personnel costs	3	3,291	3,149	3,019
345	Rent and outgoings	4	333	290	290
31	Audit fees		32	32	32
1,289	Operating costs	5	897	985	1,500
25	Capital charge	6	25	25	25
49	Depreciation expense	7	52	61	51
67	Amortisation expense	8	87	93	90
4,787	Total expenses		4,717	4,635	5,007
71	Net surplus/(deficit)	9	289	-	-
-	Other comprehensive income		-	-	-
71	Total comprehensive income		289	-	-

Ministry of Women’s Affairs

Statement of financial position

As at 30 June 2011

2010 Actual	Note			2011 Actual	Main Estimates	Supp Estimates
$000				$000	$000	$000
	Assets
	Current assets
747	Cash and cash equivalents			849	715	675
24	Debtors and other receivables	10		21	22	21
15	Prepayments			4	-	-
786	Total current assets			874	737	696
	Non-current assets
171	Property, plant and equipment	11		148	157	154
179	Intangible assets	12		92	109	150
350	Total non-current assets			240	266	304
1,136	Total assets			1,114	1,003	1,000
	Liabilities
	Current liabilities
441	Creditors and other payables	13		322	404	415
71	Provision for repayment of surplus	9		289	-	-
55	Provisions	14		-	40	20
217	Employee entitlements	15		152	213	213
784	Total current liabilities			763	657	648
	Non-current liabilities
16	Employee entitlements	15		15	10	16
16	Total non-current liabilities			15	10	16
800	Total liabilities			778	667	664
336	Net assets			336	336	336
	Taxpayers’ funds
336	General funds			336	336	336
336	Total taxpayers’ funds			336	336	336

 

Ministry of Women’s Affairs

Statement of movements in taxpayers’ funds

For the year ended 30 June 2011

2010 Actual				2011 Actual	Main Estimates	Supp Estimates
$000				$000	$000	$000
	General funds
336	Balance at 1 July			336	336	336
71	Total comprehensive income			289	-	-
(71)	Repayment of surplus to the Crown			(289)	-	-
336	Balance at 30 June			336	336	336

 

Ministry Of Women’s Affairs

Statement of cash flows

For the year ended 30 June 2011

2010 Actual			2011 Actual	Main Estimates	Supp Estimates
$000			$000	$000	$000
	Cash flows from operating activities
4,603	Receipts from Crown		4,875	4,525	4,876
97	Receipts from departmental revenue		134	110	134
153	Receipts from other revenue		-	-	-
(1,658)	Payments to suppliers		(1,564)	(1,362)	(1,923)
(2,935)	Payments to employees		(3,308)	(3,094)	(2,968)
(25)	Payments for capital charge		(25)	(25)	(25)
9	Goods and Services Tax (net)		90	-	-
244	Net cash from operating activities		202	154	94
	Cash flows from investing activities
(30)	Purchase of property, plant and equipment		(29)	(42)	(34)
(87)	Purchase of intangible assets		-	(20)	(61)
(117)	Net cash from investing activities		(29)	(62)	(95)
	Cash flows from financing activities
(37)	Repayment of surplus to Crown		(71)	(66)	(71)
(37)	Net cash from financing activities		(71)	(66)	(71)
90	Net increase / (decrease) in cash		102	26	(72)
657	Cash at the beginning of the year		747	689	747
747	Cash at the end of the year		849	715	675

 

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

Ministry of Women’s Affairs

Reconciliation of net surplus/ (deficit) to net cash from operating activities

 

For the year ended 30 June 2011

2010 Actual			2011 Actual	Main Estimates	Supp Estimates
$000			$000	$000	$000
71	Total comprehensive income		289	-	-
	Add non-cash expenses
49	Depreciation expense		52	61	51
67	Amortisation expense		87	93	90
116	Total non-cash items		139	154	141
	Add/(deduct) movements in working capital items
(16)	(Increase)/decrease in debtors, other receivables and prepayments		14	-	18
73	Increase/(decrease) in creditors and other payables		(240)	-	(65)
57	Net movements in working capital items		(226)	-	(47)
244	Net cash from operating activities		202	154	94

 

Ministry of Women’s Affairs

Statement of commitments

As at 30 June 2011

2010 Actual					2011 Actual
$000					$000
	Non-cancellable operating lease commitments
286	Less than one year				286
886	Later than one year and not later than five years				600
1,172	Total non-cancellable operating lease commitments				886
1,172	Total commitments				886

Non-cancellable operating lease commitments

The Ministry leases property, plant and equipment in the normal course of its business. These leases are for premises and photocopiers, which have a non-cancellable leasing period ranging from four to five years.

The Ministry’s non-cancellable operating leases have varying terms and renewal rights. There are no restrictions placed on the Ministry by any of its leasing arrangements.

Ministry of Women’s Affairs

Statement of contingent liabilities and contingent assets

As at 30 June 2011

 

Contingent liabilities

There were no contingent liabilities or guarantees given under the Public Finance Act in relation to the activities of the Ministry at 30 June 2011 (2010: Nil).

Contingent assets

The Ministry had no contingent assets at 30 June 2011 (2010: Nil).

Ministry of Women’s Affairs

Statement of departmental expenses and capital expenditure against appropriations

 

For the year ended 30 June 2011

2010 Actual Expenditure		2011 Actual Expenditure	2011 Voted Appropriation
$000		$000	$000
	VOTE WOMEN’S AFFAIRS
	Appropriations for departmental output expenses
4,787	This appropriation is limited to policy advice on improving outcomes for women in New Zealand, nomination services, the management of New Zealand’s international obligations related to the status of women, and associated ministerial support	4,717	5,007
	Appropriations for capital expenditure (Permanent legislative authority)
117	This appropriation is limited to the acquisition or development of assets by and for the use of the Ministry, as authorised by section 24(1) of the Public Finance Act 1989	29	95
4,904	Total appropriations	4,746	5,102

Voted Appropriation

The Voted Appropriation includes adjustments made in the Supplementary Estimates.

Ministry of Women’s Affairs

Statement of departmental unappropriated expenditure and capital expenditure

For the year ended 30 June 2011

Expenses and capital expenditure incurred in excess of appropriation

No expenses or capital expenditure were incurred in excess of appropriation during the year (2010: Nil).

Expenses and capital expenditure incurred without appropriation or other authority

No expenses or capital expenditure were incurred without appropriation or other authority during the year (2010: Nil).

Breaches of projected departmental net asset schedules

No breaches of projected departmental net asset schedules occurred during the year (2010: Nil).

Ministry of Women’s Affairs

Statement of accounting policies

For the year ended 30 June 2011

 

Reporting entity

The Ministry of Women's Affairs (the Ministry) is a government department as defined by section 2 of the Public Finance Act 1989 and is domiciled in New Zealand.

The primary objective of the Ministry is to provide services to the public rather than making a financial return. Accordingly, the Ministry has designated itself as a public benefit entity for the purposes of New Zealand equivalents to International Financial Reporting Standards (NZ IFRS).

Reporting period

The reporting period for these financial statements is the year ended 30 June 2011. These financial statements were authorised for issue by the Chief Executive of the Ministry on 30 September 2011.

Basis of preparation

The financial statements of the Ministry have been prepared in accordance with the requirements of the Public Finance Act 1989, which includes the requirement to comply with New Zealand generally accepted accounting practices (NZ GAAP and Treasury Instructions).

These financial statements have been prepared in accordance with, and comply with, NZ IFRS as appropriate for public benefit entities.

Accounting policies

The financial statements have been prepared on a historical cost basis unless otherwise stated.

The accounting policies set out below have been applied consistently to all periods presented in these financial statements. There have been no changes in accounting policies during the financial year.

The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand ($000). The functional currency of the Ministry is New Zealand dollars.

The Ministry has early adopted NZ IAS 24 Related Party Disclosures (Revised 2009). The effect of early adopting the revised NZ IAS 24 is:

1. more information is required to be disclosed about transactions between the Ministry and entities controlled, jointly controlled, or significantly influenced by the Crown
2. commitments with related parties require disclosure
3. information is required to be disclosed about any related party transactions with Ministers of the Crown with portfolio responsibility for the Ministry. An exemption is provided from reporting transactions with other Ministers of the Crown.

Revenue

The Ministry derives revenue through the provision of outputs to the Crown and for services to third parties. All revenue is recognised when earned and is measured at the fair value of consideration received.

Capital charge

The capital charge is recognised as an expense in the period to which the charge relates.

Operating leases

An operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership of an asset. Lease payments under an operating lease are recognised as an expense on a straight-line basis over the lease term.

Financial instruments

Financial assets and financial liabilities are initially measured at fair value plus transaction costs unless they are carried at fair value through profit or loss, in which case the transaction costs are recognised in the statement of comprehensive income.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets. The Ministry’s loans and receivables comprise cash and cash equivalents and debtors and other receivables.

Cash and cash equivalents

Cash includes cash on hand and funds on deposit with banks.

Debtors and other receivables

Debtors and other receivables are initially measured at fair value and subsequently measured at amortised cost using the effective interest rate, less any provision for impairment.

Impairment of a receivable is established when there is objective evidence that the Ministry will not be able to collect amounts due according to the original terms of the receivable. The amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted using the original effective interest rate. The carrying amount of the loss is recognised in the statement of comprehensive income. Overdue receivables that are renegotiated are reclassified as current.

Foreign currency transactions

Foreign currency transactions are translated into New Zealand dollars using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions, and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies, are recognised in the statement of comprehensive income.

Property, plant and equipment

Property, plant and equipment consists of computer equipment, office equipment and furniture, fitout and leasehold improvements, library books, and artwork.

Property, plant and equipment is shown at cost less accumulated depreciation and impairment losses. Artwork is stated at cost.

Additions

The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits or service potential associated with the item will flow to the Ministry and the cost of the item can be measured reliably.

In most instances, an item of property, plant and equipment is recognised at its cost. Where an asset is acquired at no cost, or for a nominal cost, it is recognised at fair value as at the date of acquisition.

Disposals

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposals are included in the statement of comprehensive income.

Subsequent costs

Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to the Ministry and the cost of the item can be measured reliably.

Depreciation

Depreciation is provided on a straight-line basis on all property, plant and equipment, except artwork, at rates that will write off the cost of the asset over its useful life.

The useful life and associated depreciation rates of the various classes of assets are estimated as follows:

Asset class	Years	Depreciation rate
Computer equipment Office equipment Furniture Fitout and leasehold improvements Library - legal reference - non-fiction and reference	3 5 5-10 the term of the lease 2-10 10	33% 20% 10%– 20% the term of the lease 10%–50% 10%

The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year-end.

Intangible assets
Software acquisition

Acquired computer software licences are capitalised on the basis of the costs to acquire and bring to use the specific software.

Costs associated with maintaining computer software are recognised as an expense when incurred. Costs that are directly associated with the development of software for internal use by the Ministry are recognised as an intangible asset.

Amortisation

Intangible assets with finite lives are amortised on a straight-line basis over their estimated useful life. Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised. The amortisation charge for each period is recognised in the statement of comprehensive income.

The useful life and associated amortisation rates of the classes of intangible assets are estimated as follows:

Asset class	Years	Amortisation rate
Acquired computer software	3	33%

Impairment of non-financial assets

Property, plant and equipment, and intangible assets that have a finite life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. Losses resulting from impairment are recognised in the statement of comprehensive income. Any reversal of an impairment loss is also recognised in the statement of comprehensive income.

Creditors and other payables

Creditors and other payables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method.

Employee entitlements
Short-term employee entitlements

Employee benefits that the Ministry expects to be settled within 12 months of balance date are measured at nominal values based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned but not yet taken at balance date, long service leave entitlements expected to be settled within 12 months, and sick leave.

The Ministry recognises a liability for sick leave to the extent that absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year. The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date, to the extent that the Ministry anticipates it will be used by staff to cover those future absences.

The Ministry recognises a liability and an expense for bonuses where it is contractually obliged to pay them, or where there is a past practice that has created a constructive obligation.

Long-term employee entitlements

Entitlements that are payable beyond 12 months, such as long service leave, have been calculated on an actuarial basis using a Treasury-issued spreadsheet. The calculations are based on:

• likely future entitlements based on years of service, years to entitlement, the likelihood that staff will reach the point of entitlement, and contractual entitlement information
• the present value of the estimated future cash flows using a discount rate of 2.84% and a salary inflation factor of 3.50% (as per Treasury Instructions).

Provisions

The Ministry recognises a provision for future expenditure of uncertain amount or timing when there is a present obligation (either legal or constructive) as a result of a past event, it is probable that an outflow of future economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Taxpayers’ funds

Taxpayers’ funds are the Crown’s investment in the Ministry and are measured as the difference between total assets and total liabilities.

Commitments

Expenses yet to be incurred on non-cancellable contracts that have been entered into on or before balance date are disclosed as commitments to the extent that there are equally unperformed obligations.

Cancellable commitments that have penalty or exit costs explicit in the agreement on exercising the option to cancel are included in the statement of commitments at the value of that penalty or exit costs.

Goods and Services Tax (GST)

All items in the financial statements, including appropriation statements, are stated exclusive of GST, except for payables and receivables, which are stated on a GST-inclusive basis. Where GST is not recoverable as input tax, it is recognised as part of the related asset or expense.

The net amount of GST recoverable from, or payable to, the Inland Revenue Department (IRD) is included as part of receivables or payables in the statement of financial position.

Commitments and contingencies are stated on a GST-exclusive basis.

The net GST paid to, or received from, the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows.

Income tax

Government departments are exempt from income tax as public authorities in terms of the Income Tax Act 2004. Accordingly, no charge for income tax has been provided for.

Budget figures

The budget figures are those presented in the 2010 Budget (Main Estimates). In addition, the financial statements also present the updated budget information from the Supplementary Estimates.

Statement of cost accounting policies

The Ministry has determined the cost of outputs using the cost allocation system outlined below.

Direct costs are those costs directly attributed to an output. Indirect costs are those that cannot be identified in an economically feasible manner, with a specific output.

Direct costs are allocated directly to outputs. Indirect costs are allocated to outputs based on each output’s direct salary costs.

There have been no changes in cost accounting policies, since the date of the last audited financial statements.

Critical accounting estimates and assumptions

In preparing these financial statements the Ministry has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results.

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There are no estimates and assumptions that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Ministry of Women’s Affairs

Notes to the financial statements

For the year ended 30 June 2011

 

Note 1 Departmental revenue

2010  Actual		2011  Actual
$000		$000
61	State Services Commission contribution for the State Sector Retirement Savings Scheme	57
12	State Services Commission contribution for the KiwiSaver Savings Scheme	15
29	Departmental contributions for staff secondment	59
102	Total departmental revenue	131

Note 2 Other revenue

2010  Actual		2011  Actual
$000		$000
133	Funding for the pilot Sexual Violence Research project	-
20	Other Agency contributions for the pilot Sexual Violence Research project	-
153	Total other revenue	-

Note 3 Personnel costs

2010  Actual		2011  Actual
$000		$000
2,838	Salaries and wages	3,188
87	Employer contributions to defined contribution plans	93
13	Increase (decrease) in employee entitlements	(39)
22	Temporary staff	34
21	ACC levy	15
2,981	Total personnel costs	3,291

Employer contributions to defined contributions plans include contributions to the State Sector Retirement Savings Scheme, KiwiSaver and the Government Superannuation Fund.

Note 4 Rent and outgoings

2010  Actual		2011  Actual
$000		$000
279	Rent and building operating expenses	275
9	Archive security	4
16	Cleaning	16
10	Energy	11
3	Repairs and maintenance – premises	4
20	Repairs and maintenance – furniture and equipment	16
8	Insurance	7
345	Total rent and outgoings	333

Note 5 Operating costs

2010  Actual		2011  Actual
$000		$000
74	Recruitment expenses	89
149	Training and conference costs	32
100	Travel expenses	64
17	Library	8
609	Consultants and contractors	411
104	Publications	96
12	Operating lease payments	12
224	Other output expenses	185
1,289	Total operating costs	897

Note 6 Capital charge

The Ministry pays a capital charge to the Crown on its taxpayers’ funds as at 30 June and 31 December each year

The capital charge rate for the year ended 30 June 2011 was 7.5% (2010: 7.5%).

Note 7 Depreciation expense

2010  Actual		2011  Actual
$000		$000
23	Computer equipment	26
2	Office equipment	2
22	Furniture, fitout and leasehold improvements	22
2	Library	2
49	Total depreciation expense	52

Note 8 Amortisation expense

2010  Actual		2011  Actual
$000		$000
67	Computer software	87
67	Total amortisation expense	87

Note 9 Repayment of surplus

Pursuant to section 22 of the Public Finance Act, any operating surplus is returned to the Crown. The repayment of surplus is to be paid by 31 October of each year.

The Ministry has a provision for repayment of the operating surplus to the Crown of $289,000 (2010: $71,000).

Note 10 Debtors and receivables

Debtors and other receivables are non-interest bearing and are normally settled on 30-day terms; therefore the carrying value of debtors and other receivables approximates their fair value.

Note 11 Property, plant and equipment

	Balance 1 July 2010	Additions	Disposals	Balance 30 June 2011
	$000	$000	$000	$000
Cost
Computer equipment	379	21	(136)	264
Office equipment	119	1	(3)	117
Furniture, fitout and leasehold improvements	418	6	(6)	418
Library	207	1	-	208
Artwork	17	-	-	17
Total cost	1,140	29	(142)	1,024

		Balance 1 July 2010			Depreciation Expense		Elimination on Disposal		Balance 30 June 2011
		$000			$000		$000		$000
	Accumulated depreciation
Computer equipment		341			26		(136)		231
Office equipment		112			2		(3)		111
Furniture, fitout and leasehold improvements		324			22		(6)		340
Library		192			2		-		194
Artwork		-			-		-		-
Total accumulated depreciation		969			52		(142)		876
Net carrying amount		171							148

Note 12 Intangible assets

		Balance 1 July 2010			Additions					Disposals				Balance 30 June 2011
		$000			$000					$000				$000
	Cost
Computer software			444			-			-				444
		Balance 1 July 2010			Amortisation Expense					Elimination on Disposal				Balance 30 June 2011
		$000			$000					$000				$000
	Accumulated amortisation
Computer software			265			87			-				352
Net carrying amount			179										92

Note 13 Creditors and other payables

2010  Actual		2011  Actual
$000		$000
362	Creditors	107
54	Accrued expenses	100
25	GST payable	115
441	Total creditors and other payables	322

Creditors and other payables are non-interest bearing and are normally settled on 30-day terms, and therefore the carrying value of creditors and other payables approximates their fair value.

Note 14 Provisions

2010  Actual		2011  Actual
$000		$000
55	Provision for Chief Executive development fund	-
55	Total provisions	-

Note 15 Employee entitlements

2010  Actual		2011  Actual
$000		$000
	Current employee entitlements are represented by:
108	Annual leave	66
11	Sick leave	16
4	Long service leave	3
94	Accrued salaries and wages	67
217	Total current portion	152
	Non-current employee entitlements are represented by:
16	Long service leave	15
233	Total employee entitlements	167

Note 16 Related party transactions

The Ministry is a wholly-owned entity of the Crown. The Government significantly influences the role of the Ministry as well as being its major source of revenue.

The Ministry enters into transactions with other government departments, Crown entities and state owned enterprises on an arm’s length basis. Those transactions that occur within a normal supplier or client relationship on terms and conditions no more or less favourable than those which it is reasonable to expect the Ministry would have adopted if dealing with that entity at arm’s length in the same circumstances are not disclosed.

The Ministry received funding from the Crown of $4,875,000 to provide services to the public for the year ended 30 June 2011 (2010: $4,603,000). The Ministry also received $131,000 in departmental revenue and other agency funding for the year ended 30 June 2011 (2010: $122,000). Refer to notes 1 and 2 for further information.

In conducting its activities, the Ministry is required to pay various taxes and levies (such as GST, FBT, PAYE, and ACC levies) to the Crown and entities related to the Crown. The payment of these taxes and levies, other than income tax, is based on the standard terms and conditions that apply to all tax and levy payers. The Ministry is exempt from paying income tax.

The Ministry also purchases goods and services from entities controlled, significantly influenced, or jointly controlled by the Crown. Purchases from these government-related entities for the year ended 30 June 2011 totalled $81,000 (2010: $110,000). These purchases included the purchase of electricity from Genesis, air travel from Air New Zealand, legal services from Crown Law Office, and postal services from New Zealand Post.

From July 2010 through to October 2010, Kowhai Consulting Limited provided services as a member of the management team. There were no other transactions with Kowhai Consulting Limited during this period, closing balances, or commitments.

Note 17 Key management personnel compensation

2010  Actual		2011  Actual
$000		$000
726	Salaries and other short-term employee benefits	770
-	Post-employment benefits	-
-	Other long-term benefits	-
-	Termination benefits	72
726	Total key management personnel compensation	842

Key management personnel include the Chief Executive and the four members of the Leadership team (2010: Chief Executive and the three members of the Executive Management team).

Note 18 Severance payments

During the year the Ministry initiated a review of its administrative and support services to ensure they were aligned with business needs. As a result of implementing decisions following the review, $290,000 was paid out in severance payments to seven staff members.

Note 19 Events after balance date

There have been no events after balance date that materially affect the financial statements.

Note 20 Financial instrument risks

The Ministry’s activities expose it to a variety of financial instrument risks, including currency risk, interest rate risk, credit risk and liquidity risk. The Ministry has a series of policies to manage the risks associated with financial instruments and seeks to minimise exposure from financial instruments. These policies do not allow any transactions that are speculative in nature to be entered into.

Currency risk

Currency risk is the risk that the fair value or future cash flows from a financial instrument will fluctuate because of changes in foreign exchange rates.

The Ministry does not have significant concentrations of currency risk for its financial instruments

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows from a financial instrument will fluctuate because of changes in market interest rates.

The Ministry has no interest-bearing financial instruments and therefore has no exposure to interest rate risk.

Credit risk

Credit risk is the risk that a third party will default on its obligations to the Ministry, causing the Ministry to incur a loss.

In the normal course of its business, credit risk arises from debtors and bank deposits.

The Ministry is only permitted to deposit funds with Westpac, a registered bank. This entity has a high credit rating. For its other financial instruments, the Ministry does not have significant concentrations of credit risk.

The Ministry’s maximum credit exposure for each class of financial instrument is represented by the carrying amount of cash and cash equivalents, and debtors and other receivables. There is no collateral held as security against these financial instruments.

Liquidity risk

Liquidity risk is the risk that the Ministry will encounter difficulty raising liquid funds to meet commitments as they fall due.

In meeting its liquidity requirements, the Ministry closely monitors its forecast cash requirements with expected cash drawdowns from the New Zealand Debt Management Office. The Ministry maintains a target level of available cash to meet its liquidity requirements.

The Ministry’s creditors and other payables (note 13) will be settled in less than six months after balance date.

Note 21 Capital management

The Ministry’s capital is its equity (or taxpayers’ funds), which is represented by net assets.

The Ministry manages its revenues, expenses, assets, liabilities, and general financial dealings prudently. The Ministry’s equity is largely managed as a by-product of managing income, expenses, assets and liabilities, and compliance with the Government Budget processes and Treasury Instructions

The objective of managing the Ministry’s equity is to ensure the Ministry effectively achieves its goals and objectives for which it has been established, whilst remaining a going concern.

 

Independent Auditor’s Report

 

To the readers of the Ministry of Women’s Affair’s financial statements and statement of service performance for the year ended 30 June 2011

 

The Auditor General is the auditor of the Ministry of Women’s Affairs (the Ministry). The Auditor General has appointed me, Phil Kennerley, using the staff and resources of Audit New Zealand, to carry out the audit of the financial statements and the statement of service performance of the Ministry on her behalf.

We have audited:

• the financial statements of the Ministry on pages 26 to 47, that comprise the statement of financial position, statement of commitments, statement of contingent liabilities and contingent assets as at 30 June 2011, the statement of comprehensive income, statement of changes in equity, statement of Ministerial expenses and capital expenditure against appropriations, statement of unappropriated expenditure and capital expenditure and statement of cash flows for the year ended on that date and the notes to the financial statements that include accounting policies and other explanatory information; and
• the statement of service performance of the Ministry on pages 23 to 25.

Opinion

In our opinion:

• the financial statements of the Ministry on pages 26 to 47:
  • comply with generally accepted accounting practice in New Zealand; and
  • fairly reflect the Ministry’s:
    • financial position as at 30 June 2011;
    • financial performance and cash flows for the year ended on that date;
    • expenses and capital expenditure incurred against each appropriation administered by the Ministry and each class of outputs included in each output expense appropriation for the year ended 30 June 2011; and
    • unappropriated expenses and capital expenditure for the year ended 30 June 2011.
• the statement of service performance of the Ministry on pages 23 to 25:
  • complies with generally accepted accounting practice in New Zealand; and
  • fairly reflects for each class of outputs for the year ended 30 June 2011 the Ministry’s:
    • service performance compared with the forecasts in the statement of forecast service performance at the start of the financial year; and
    • actual revenue and output expenses compared with the forecasts in the statement of forecast service performance at the start of the financial year.

Our audit was completed on 30 September 2011. This is the date at which our opinion is expressed.

The basis of our opinion is explained below. In addition, we outline the responsibilities of the Chief Executive and our responsibilities, and we explain our independence.

Basis of opinion
We carried out our audit in accordance with the Auditor General’s Auditing Standards, which incorporate the International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and carry out our audit to obtain reasonable assurance about whether the financial statements and the statement of service performance are free from material misstatement.

Material misstatements are differences or omissions of amounts and disclosures that would affect a reader’s overall understanding of the financial statements and the statement of service performance. If we had found material misstatements that were not corrected, we would have referred to them in our opinion.

An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in the financial statements and the statement of service performance. The procedures selected depend on our judgement, including our assessment of risks of material misstatement of the financial statements and the statement of service performance, whether due to fraud or error. In making those risk assessments; we consider internal control relevant to the Ministry’s preparation of the financial statements and the statement of service performance that fairly reflect the matters to which they relate. We consider internal control in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Ministry’s internal control.

An audit also involves evaluating:

• the appropriateness of accounting policies used and whether they have been consistently applied;
• the reasonableness of the significant accounting estimates and judgements made by the Chief Executive;
• the adequacy of all disclosures in the financial statements and the statement of service performance; and
• the overall presentation of the financial statements and the statement of service performance.
  

We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and the statement of service performance. We have obtained all the information and explanations we have required and we believe we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion.

Responsibilities of the Chief Executive
The Chief Executive is responsible for preparing financial statements and a statement of service performance that:

• comply with generally accepted accounting practice in New Zealand;
• fairly reflect the Ministry’s financial position, financial performance, cash flows, expenses and capital expenditure incurred against each appropriation and its unappropriated expenses and capital expenditure; and
• fairly reflects its service performance.
  

The Chief Executive is also responsible for such internal control as is determined is necessary to enable the preparation of financial statements and a statement of service performance that are free from material misstatement, whether due to fraud or error.

The Chief Executive’s responsibilities arise from the Public Finance Act 1989.

Responsibilities of the Auditor
We are responsible for expressing an independent opinion on the financial statements and the statement of service performance and reporting that opinion to you based on our audit. Our responsibility arises from section 15 of the Public Audit Act 2001 and the Public Finance Act 1989.

Independence
When carrying out the audit, we followed the independence requirements of the Auditor General, which incorporate the independence requirements of the New Zealand Institute of Chartered Accountants.

Other than the audit, we have no relationship with, or interests in, the Ministry.



Phil Kennerley
Audit New Zealand
On behalf of the Auditor General
Wellington, New Zealand

Matters relating to the electronic presentation of the audited financial statements and statement of service performance. This audit report relates to the financial statements and statement of service performance of the Ministry of Women’s Affairs for the year ended 30 June 2011 included on the Ministry of Women’s Affairs website. The Ministry of Women’s Affairs Chief Executive is responsible for the maintenance and integrity of Ministry of Women’s Affairs website. We have not been engaged to report on the integrity of Ministry of Women’s Affairs website. We accept no responsibility for any changes that may have occurred to the financial statements and statement of service performance since they were initially presented on the website. The audit report refers only to the financial statements and statement of service performance named above. It does not provide an opinion on any other information which may have been hyperlinked to or from the financial statements and statement of service performance. If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the audited financial statements and statement of service performance as well as the related audit report dated 30 September 2011 to confirm the information included in the audited financial statements and statement of service performance presented on this website. Legislation in New Zealand governing the preparation and dissemination of financial information may differ from legislation in other jurisdictions.

Part 4 Capability

Managing the Ministry

Leadership

During the year, the Ministry took several steps to ensure the organisation is fit for purpose and cost-effective and has resources in the right areas to continue to improve its effectiveness.

A new leadership team was established in 2011, with greater representation from the Ministry’s output leaders. To ensure a fit for purpose organisation, the Ministry reviewed its administration and support functions using the Better Administrative and Support Services (BASS) method. This approach uses public sector benchmarks to establish the support needs of an organisation in relation to its core outputs and to other comparable government policy organisations.

The review found that the ratio of administration and support services expenditure to output expenditure was higher than other comparable government policy agencies. As a result, the Ministry designed and implemented a new structure to deliver administrative and support services, with effect from 4 July 2011. The change has enabled a shift in resources from support services to high priority policy development.

People

The Ministry is small in size but flexible in its employment practices. Of the 23 staff as at 30 June 2011, 65 percent were on a flexible working arrangement.

We supplement our core staff with contractors to provide specialist skills and expertise as needed.

Equal employment opportunity (EEO) continues to be a strong part of the Ministry’s work culture. We respond to individual staff needs in a positive and supportive manner, encourage work-life balance and help our people invest in their own well-being.

We are also committed to a culture of high achievement and ongoing development of skill.

Towards the end of the year, the Ministry renewed its collective agreement, for a three-year term.

Continuous improvement

During the year, the Ministry strengthened its foundations by re-allocating resources in support of its core business. We will continue to review and improve our business strategies, systems and processes to ensure they are cost-effective and fit for purpose.

We will continue to supplement self-review with external review. An independent review of policy advice in 2011 rated the Ministry in the top quartile of policy agencies within the group assessed. The central agencies’ Performance Improvement Framework review of the Ministry was underway at the end of the reporting period. The review will assist us by identifying the areas where further improvement is needed to enable greater efficiency and effectiveness.

Publications and other communications

The Ministry published the following reports, publications and website features during the year:

• United Nations Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) report
• Women in New Zealand – the numbers and why they matter (pamphlet)
• Pānui newsletter in March/April, June, October and December
• Statement of Intent 2011-2014
• Annual report for year ended 30 June 2010
• Identifying Emerging Industries (commissioned from AUT)
• Students’ Occupational Choices Study: Dunedin and Auckland (commissioned from AUT)
• Briefing to the Incoming Minister
• Speak Up. Seek Help. Safe Home.  Literature review and a brochure (in partnership with the Office of Ethnic Affairs) on how to help women from different cultures and their families live without violence at home
• New online resources called Women on Boards, with a section called My Board Strengths, a self-assessment tool for women seeking board roles
• Pānui reader survey
• Information about the Suffrage Day events and displays as part of the Ministry’s 2010 Suffrage programme.

Ministry of Women’s Affairs

48 Mulgrave Street
Thorndon
Wellington

PO Box 10049
Wellington

Tel:      (04) 915 7112
Fax:     (04) 916 1604
email:  mwa@mwa.govt.nz
www.mwa.govt.nz