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Table of Contents

Statement of responsibility
Statement of objectives
Statement of service performance
Statement of financial performance
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

Shenagh Gleisner Chief Executive 30 September 2008				Martin Sebire General Manager Corporate 30 September 2008

Performance measure and target	Actual
Briefings will be provided on all policy issues requested by the Minister and other policy issues as appropriate. (Estimated 60)	80 policy briefings requested by the Minister were provided. (2007: 58 policy briefings requested) 61 additional policy briefings were provided. (2007: 65 additional policy briefings)
Briefings or responses will be provided on all requests for nominations for statutory bodies. (Estimated 150)	204 nominations briefings were prepared. (2007: 162 nominations briefings)  32 further requests were responded to. (2007: 18 further requests)
Ministerial support services will be provided as required:
draft replies to ministerial correspondence (Estimated 50)	47 draft replies were provided. (2007: 36 draft replies)
draft responses to parliamentary questions (Estimated 35)	53 draft responses were provided. (2007: 47 draft responses)
speech notes and backg round material (Estimated 40)	52 speech notes and background material were provided. (2007: 50 speech notes and background material)3
Responses will be provided to requests under the Official Information Act. (Estimated 10)	15 responses were provided. (2007: 14 responses)
Responses will be provided to information requests including email, telephone and written correspondence. (Estimated 500)	582 responses were provided. (2007: 637 responses)3
Reports on upcoming Cabinet papers will be completed each week. (Estimated 40)	49 upcoming Cabinet paper reports were completed. (2007: 45 upcoming Cabinet paper reports)3
Status reports on progress and emerging issues will be completed each fortnight. (Estimated 20)	21 status reports on progress and emerging issues were completed. (2007: 23 status reports)3

³ These are new measures for 2007/08. Actual performance for 2006/07 has been included for comparative purposes.

Quality

Timeliness

Cost

The accompanying notes form part of these financial statements.

The accompanying notes form part of these financial statements.

 

The accompanying notes form part of these financial statements.

 

The Goods and Services Tax (GST) component of operating activities reflects the net GST paid and received with 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.

The accompanying notes form part of these financial statements.

 

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MINISTRY OF WOMEN’S AFFAIRS

RECONCILIATION OF NET SURPLUS/(DEFICIT) TO NET CASH FROM OPERATING ACTIVITIES

FOR THE YEAR ENDING 30 JUNE 2008

The accompanying notes form part of these financial statements.

 

The accompanying notes form part of these financial statements.

 

The accompanying notes form part of these financial statements.

 

The accompanying notes form part of these financial statements.

 

The accompanying notes form part of these financial statements.

 

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MINISTRY OF WOMEN’S AFFAIRS

STATEMENT OF ACCOUNTING POLICIES

FOR THE YEAR ENDING 30 JUNE 2008

 

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 2008. These financial statements were authorised for issue by the Chief Executive of the Ministry on 30 September 2008.

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). 

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

This is the Ministry’s first set of financial statements prepared using NZ IFRS. The comparatives for the year ended 30 June 2007 have been restated to NZ IFRS accordingly. Reconciliations of equity and net surplus for the year ended 30 June 2007 under NZ IFRS to the balances reported in the 30 June 2007 financial statements are detailed in notes 22 - 26.

Accounting policies
The accounting policies set out below have been applied consistently to all periods presented in these financial statements and in preparing an opening NZ IFRS statement of financial position as at 1 July 2006 for the purpose of the transition to NZ IFRS. 

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

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.

Standards, amendments and interpretations issued that are not yet effective and have not been early adopted, and which are relevant to the Ministry include:

NZ IAS 1 Presentation of Financial Statements (2007) and is effective for reporting periods on or after 1 January 2009. The Ministry intends to adopt this standard in the period ending 30 June 2010, and is yet to decide whether it will prepare a single statement of comprehensive income or a separate income statement followed by a statement of comprehensive income.

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 financial performance.        

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 financial performance. 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 financial performance. 

Property, plant and equipment
Property, plant and equipment consists of computer equipment, office equipment and furniture, fit-out 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 financial performance. 

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.

Staff training costs are recognised as an expense when incurred.

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 financial performance. 

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

Asset class	Years	Depreciation 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 financial performance. Any reversal of an impairment loss is also recognised in the statement of financial performance.

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
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, 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.

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 2007 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.

 

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MINISTRY OF WOMEN’S AFFAIRS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDING 30 JUNE 2008

 

NOTE 1       DEPARTMENTAL REVENUE

2007 Actual		2008  Actual
$000		$000
78	State Services Commission contribution for the State Sector Retirement Savings Scheme	81
78	Recovery of salaries for staff secondments to other departments	23
20	Departmental contributions for the Sexual Violence Research project	40
176	Total departmental revenue	144

 

NOTE 2       OTHER REVENUE

2007 Actual		2008  Actual
$000		$000
-	Contributions for the Occupational Segregation project	25
-	Other Agency contributions for the Sexual Violence Research project	10
-	Sundry	1
-	Total other revenue	36

 

NOTE 3       PERSONNEL COSTS

2007 Actual		2008 Actual
$000		$000
2,523	Salaries and wages	2,758
87	Employer contributions to defined contribution plans	87
43	Increase/(decrease) in employee entitlements	(38)
37	Temporary staff	80
8	ACC levy	13
2,698	Total personnel costs	2,900

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

 

NOTE 4       RENT AND OUTGOINGS

2007 Actual		2008 Actual
$000		$000
209	Rent and building operating expenses	233
4	Archive security	5
15	Cleaning	14
11	Energy	11
6	Repairs and maintenance – premises	22
6	Repairs and maintenance – furniture and equipment	8
13	Insurance	8
264	Total rent and outgoings	301

 

NOTE 5       AUDIT FEES

2007 Actual		2008 Actual
$000		$000
28	Annual audit of financial statements	29
5	Audit of NZ IFRS transition	7
33	Total audit costs	36

 

NOTE 6       OPERATING COSTS

2007 Actual		2008 Actual
$000		$000
80	Recruitment expenses	95
131	Training and conference costs	180
151	Travel expenses	159
21	Library	16
397	Consultants and contractors	434
65	Publications	68
-	Operating lease payments	1
166	Other output expenses	210
1,011	Total operating costs	1,163

 

NOTE 7       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 2008 was 7.5 percent (2007: 7.5 percent).

 

NOTE 8       DEPRECIATION EXPENSE

2007 Actual		2008 Actual
$000		$000
17	Computer equipment	14
10	Office equipment	9
25	Furniture, fitout and leasehold improvements	25
13	Library	14
65	Total depreciation expense	62

 

NOTE 9       AMORTISATION EXPENSE

2007 Actual		2008 Actual
$000		$000
16	Computer software	21
16	Total amortisation expense	21

 

NOTE 10     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 $84,000 (2007: $166,000).
 

NOTE 11     DEBTORS AND OTHER 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 12     PROPERTY, PLANT AND EQUIPMENT

	Balance        1 July 2006	Additions	Disposals	Balance      30 June 2007
Cost	$000	$000	$000	$000
Computer equipment	334	20	(1)	353
Office equipment	178	2	(4)	176
Furniture, fitout and leasehold improvements	412	2	(4)	410
Library	189	8	-	197
Artwork	17	-	-	17
Total cost	1,130	32	(9)	1,153
	Balance        1 July 2006	Depreciation Expense	Elimination on Disposal	Balance      30 June 2007
Accumulated depreciation	$000	$000	$000	$000
Computer equipment	315	17	(1)	331
Office equipment	151	10	(3)	158
Furniture, fitout and leasehold improvements	245	25	(2)	268
Library	156	13	-	169
Artwork	-	-	-	-
Total accumulated depreciation	867	65	(6)	926
Net carrying amount	263			227

 

	Balance        1 July 2007	Additions	Disposals	Balance      30 June 2008
Cost	$000	$000	$000	$000
Computer equipment	353	5	(48)	310
Office equipment	176	2	(36)	142
Furniture, fitout and leasehold improvements	410	11	(5)	416
Library	197	5	-	202
Artwork	17	-	-	17
Total cost	1,153	23	(89)	1,087
	Balance        1 July 2007	Depreciation Expense	Elimination on Disposal	Balance      30 June 2008
Accumulated depreciation	$000	$000	$000	$000
Computer equipment	331	14	(49)	296
Office equipment	158	9	(30)	137
Furniture, fitout and leasehold improvements	268	25	(5)	288
Library	169	14	-	183
Artwork	-	-	-	-
Total accumulated depreciation	926	62	(84)	904
Net carrying amount	227			183

 

 

NOTE 13     INTANGIBLE ASSETS

	Balance 1 July 2006	Additions	Disposals	Balance 30 June 2007
Cost	$000	$000	$000	$000
Computer software	159	11	-	170
	Balance 1 July 2006	Amortisation Expense	Elimination on Disposal	Balance 30 June 2007
Accumulated amortisation	$000	$000	$000	$000
Computer software	127	16	-	143
Net carrying amount	32	-	-	27

 

 

	Balance        1 July 2007	Additions	Disposals	Balance      30 June 2008
Cost	$000	$000	$000	$000
Computer software	170	19	-	189
	Balance        1 July 2007	Amortisation Expense	Elimination on Disposal	Balance      30 June 2008
Accumulated amortisation	$000	$000	$000	$000
Computer software	143	21	-	164
Net carrying amount	27	-	-	25

 

NOTE 14     CREDITORS AND OTHER PAYABLES

2007 Actual		2008 Actual
$000		$000
311	Creditors	204
-	Income received in advance	9
49	Accrued expenses	212
38	GST payable	33
398	Total creditors and other payables	458

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 15     EMPLOYEE ENTITLEMENTS

2007 Actual		2008 Actual
$000		$000
128	Annual leave	89
6	Sick leave	6
74	Accrued salaries and wages	70
208	Total employee entitlements	165

 

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.
 

NOTE 17     KEY MANAGEMENT PERSONNEL COMPENSATION

2007   Actual		2008 Actual
$000		$000
666	Salaries and other short-term employee benefits	716
-	Post-employment benefits	-
-	Other long-term benefits	-
-	Termination benefits	-
666	Total key management personnel compensation	716

Key management personnel include the Chief Executive and the three members of the Executive Management team.

 

NOTE 18     EVENTS AFTER BALANCE DATE

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

NOTE 19     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, including those instruments that are overdue or impaired.

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 14) will be settled in less than six months after balance date.
 

NOTE 20     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, liabilities, and compliance with the Government Budget processes and with 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.

NOTE 21     EXPLANATION OF MAJOR VARIANCES AGAINST BUDGET

Explanations for major variances from the Ministry’s estimated figures in the 2007 Budget are as follows:

Statement of financial performance
Rent and outgoings
The budget for rent and outgoings only includes rental and leasing costs. Actual rent and outgoings expenditure includes other costs relating to the premises (refer to note 4 for a breakdown of rent and outgoing costs). 

Operating costs
Operating expenditure was reduced to offset the higher than expected levels of spending on personnel costs and rent and outgoings. 

Statement of financial position
Cash and cash equivalents
Cash and cash equivalent balances are greater than budgeted because capital project payments were lower than forecast. 

Property, plant and equipment
Property, plant and equipment are below budget due to a lower than forecast spend on office equipment and the information technology replacement programme. 

Intangible assets
Intangible assets are below budget due to delays in the knowledge management development project.

Statement of cash flows
Purchase of property, plant and equipment
Cash outflows for capital purchases are below budget due to a lower than forecast spend on office equipment and the information technology replacement programme. 

Purchase of intangible assets
Cash outflows for the purchase of intangible assets are below budget due to delays in the knowledge management development project.
 

NOTE 22     EXPLANATION OF TRANSITION TO NZ IFRS

The Ministry's financial statements for the year ended 30 June 2008 are the first financial statements that comply with NZ IFRS. The Ministry has applied NZ IFRS 1 First-time Adoption of NZ IFRS (NZ IFRS 1) in preparing these financial statements.

The Ministry's transition date is 1 July 2006. The Ministry prepared its opening NZ IFRS statement of financial position at that date. The reporting date of these financial statements is 30 June 2008. The Ministry's NZ IFRS adoption date is 1 July 2007.

In preparing these financial statements in accordance with NZ IFRS 1, the Ministry has applied no optional exemptions in the application of NZ IFRS.

The only mandatory exception from retrospective application that applies to the Ministry is the requirement for estimates under NZ IFRS at 1 July 2006 and 30 June 2007 to be consistent with estimates made for the same date under previous NZ GAAP.

NOTE 23     RECONCILIATION OF EQUITY UNDER NZ IFRS AT 1 JULY 2006

The following table shows the changes in equity, resulting from the transition from previous NZ GAAP to NZ IFRS as at 1 July 2006.

	Note	NZ GAAP 1 July 2006	Effect on transition to NZ IFRS 1 July 2006	NZ IFRS 1 July 2006
		$000	$000	$000
Assets
Current assets
Cash and cash equivalents		622	-	622
Debtors and other receivables		24	-	24
Prepayments		18	-	18
Total current assets		664	-	664
Non-current assets
Property, plant and equipment	a,b	350	(86)	264
Intangible assets	a	-	30	30
Total non-current assets		350	(56)	294
Total assets		1,014	(56)	958
Liabilities
Current liabilities
Creditors and other payables		387	-	387
Provision for repayment of surplus		51	-	51
Employee entitlements	c	178	6	184
Total current liabilities		616	6	622
Non-current liabilities		-	-	-
Total liabilities		616	6	622
Net assets		398	(62)	336
Taxpayers’ funds
General funds	b,c	398	(62)	336
Total taxpayers’ funds		398	(62)	336

 

Explanatory notes

a       Property, plant and equipment – computer software
Under previous NZ GAAP, computer software was classified as property, plant and equipment. 

Computer software has been reclassified as an intangible asset on transition to NZ IFRS ($30,000).
 
b       Property, plant and equipment – capitalised website expenditure
Under previous NZ GAAP, capitalised website costs were classified as property, plant and equipment. 

Capitalised website expenditure has been written off to equity on transition to NZ IFRS ($56,000).

c       Employee entitlements – sick leave
Under previous NZ GAAP, accumulated sick leave was not recognised as a liability. NZ IAS 19 requires the Ministry to recognise employees’ unused sick leave entitlements that can be carried forward at balance date, to the extent that the Ministry anticipates it will be used by staff to cover future absences.

The sick leave liability has been created against equity on transition to NZ IFRS ($6,000).

NOTE 24     RECONCILIATION OF EQUITY UNDER NZ IFRS AT 30 JUNE 2007

The following table shows the changes in equity, resulting from the transition from previous NZ GAAP to NZ IFRS as at 30 June 2007.

	Note	NZ GAAP 30 June 2007	Effect on transition to NZ IFRS 30 June 2007	NZ IFRS 30 June 2007
		$000	$000	$000
Assets
Current assets
Cash and cash equivalents		795	-	795
Debtors and other receivables		41	-	41
Prepayments		18	-	18
Total current assets		854	-	854
Non-current assets
Property, plant & equipment	a,b	297	(70)	227
Intangible assets	a	-	27	27
Total non-current assets		297	(43)	254
Total assets		1,151	(43)	1,108
Liabilities
Current liabilities
Creditors and other payables		398	-	398
Provision for repayment of surplus	c	153	13	166
Employee entitlements	d	202	6	208
Total current liabilities		753	19	772
Non-current liabilities		-	-	-
Total liabilities		753	19	772
Net assets		398	(62)	336
Taxpayers’ funds
General funds	b,d	398	(62)	336
Total taxpayers’ funds		398	(62)	336

Explanatory notes

a       Property, plant and equipment – computer software
Under previous NZ GAAP, computer software was classified as property, plant and equipment. 

Computer software has been reclassified as an intangible asset on transition to NZ IFRS ($27,000).

b       Property, plant and equipment – capitalised website expenditure
Under previous NZ GAAP, capitalised website costs were classified as property, plant and equipment. 

Capitalised website expenditure has been written off to equity on transition to NZ IFRS ($43,000).

c       Provision for repayment of surplus
Under previous NZ GAAP, amortisation of capitalised website expenditure was recognised. 

Amortisation of capitalised website expenditure is not recognised under NZ IFRS ($13,000).

d       Employee entitlements – sick leave
Under previous NZ GAAP, accumulated sick leave was not recognised as a liability. NZ IAS 19 requires the Ministry recognise employees’ unused sick leave entitlements that can be carried forward at balance date, to the extent that the Ministry anticipates it will be used by staff to cover future absences.

The sick leave liability has been created against equity on transition to NZ IFRS ($6,000).

NOTE 25     RECONCILIATION OF SURPLUS UNDER NZ IFRS FOR THE YEAR ENDED 30 JUNE 2007

The following table shows the changes in the Ministry’s surplus, resulting from the transition from previous NZ GAAP to NZ IFRS for the year ended 30 June 2007.

	Note	NZ GAAP 30 June 2007	Effect on transition to NZ IFRS 30 June 2007	NZ IFRS 30 June 2007
		$000	$000	$000
Revenue
Revenue Crown		4,107	-	4,107
Revenue other		176	-	176
Total revenue		4,283	-	4,283
Expenses
Personnel		2,698	-	2,698
Rent and outgoings		264	-	264
Audit fees		33	-	33
Operating costs		1,011	-	1,011
Capital charge		30	-	30
Depreciation expense	a	94	(29)	65
Amortisation expense	b	-	16	16
Total expenses		4,130	(13)	4,117
Net surplus/(deficit)		153	13	166

Explanatory notes

a       Depreciation expense – computer software
Computer software depreciation has been reclassified as amortisation of an intangible asset under NZ IFRS ($16,000). 

b       Depreciation and amortisation expense – capitalised website expenditure
Amortisation of capitalised website expenditure, which was recognised under previous NZ GAAP, is not recognised under NZ IFRS ($13,000).

 

NOTE 26     RECONCILIATION OF CASH FLOWS UNDER NZ IFRS FOR THE YEAR ENDED 30 JUNE 2007

There have been no material adjustments to the Ministry’s statement of cash flows on transition to NZ IFRS.

 

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AUDIT REPORT

 

TO THE READERS OF THE

MINISTRY OF WOMEN’S AFFAIRS
FINANCIAL STATEMENTS AND STATEMENT OF SERVICE PERFORMANCE
FOR THE YEAR ENDED 30 JUNE 2008

 

The Auditor-General is the auditor of the Ministry of Women’s Affairs (the Ministry). The Auditor‑General has appointed me, J R Smaill, using the staff and resources of Audit New Zealand, to carry out the audit on his behalf. The audit covers the financial statements and statement of service performance included in the annual report of the Ministry for the year ended 30 June 2008.

Unqualified Opinion

In our opinion:

• The financial statements of the Ministry comprising the Statement of Financial Performance, Statement of Movements in Taxpayers’ Funds, Statement of Financial Position, Statement of Cash Flows, Statement of Commitments, Statement of Contingent Liabilities, Statement of Unappropriated Expenditure, Statement of Departmental Expenditure and Appropriations and Notes 1 to 26 to the Financial Statements:

• comply with generally accepted accounting practice in New Zealand; and

• fairly reflect:

• the Ministry’s financial position as at 30 June 2008; and

• the results of its operations and cash flows for the year ended on that date.

• The statement of service performance of the Ministry:

• complies with generally accepted accounting practice in New Zealand; and
• fairly reflects for each class of outputs:

• its standards of delivery performance achieved, as compared with the forecast standards outlined in the statement of forecast service performance adopted at the start of the financial year; and

• its actual revenue earned and output expenses incurred, as compared with the forecast revenues and output expenses outlined in the statement of forecast service performance adopted at the start of the financial year.

The audit was completed on 30 September 2008, and 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 the Auditor, and explain our independence.

Basis of Opinion

We carried out the audit in accordance with the Auditor‑General’s Auditing Standards, which incorporate the New Zealand Auditing Standards.

We planned and performed the audit to obtain all the information and explanations we considered necessary in order to obtain reasonable assurance that the financial statements and statement of service performance did not have material misstatements, whether caused by fraud or error.

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

The audit involved performing procedures to test the information presented in the financial statements and statement of service performance. We assessed the results of those procedures in forming our opinion.

Audit procedures generally include:

• determining whether significant financial and management controls are working and can be relied on to produce complete and accurate data;
• verifying samples of transactions and account balances;
• performing analyses to identify anomalies in the reported data;
• reviewing significant estimates and judgements made by the Chief Executive;
• confirming year-end balances;
• determining whether accounting policies are appropriate and consistently applied; and
• determining whether all financial statement and statement of service performance disclosures are adequate.

 

We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and statement of service performance.

We evaluated the overall adequacy of the presentation of information in the financial statements and statement of service performance. We obtained all the information and explanations we required to support our opinion above.

Responsibilities of the Chief Executive and the Auditor

The Chief Executive is responsible for preparing the financial statements and statement of service performance in accordance with generally accepted accounting practice in New Zealand. The financial statements must fairly reflect the financial position of the Ministry as at 30 June 2008 and the results of its operations and cash flows for the year ended on that date. The statement of service performance must fairly reflect, for each class of outputs, the Ministry’s standards of delivery performance achieved and revenue earned and expenses incurred, as compared with the forecast standards, revenue and expenses adopted at the start of the financial year. The Chief Executive’s responsibilities arise from sections 45A and 45B of the Public Finance Act 1989.

We are responsible for expressing an independent opinion on the financial statements and statement of service performance and reporting that opinion to you. This responsibility arises from section 15 of the Public Audit Act 2001 and section 45D(2) of 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 Institute of Chartered Accountants of New Zealand.

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

 

J R Smaill
Audit New Zealand
On behalf of the Auditor-General, Wellington, New Zealand

 

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Matters Relating to the Electronic Presentation of the Audited Financial Statements

 

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