10 April 2015
MEDIA STATEMENT
Embargoed until 10.00am, Friday 10 April 2015
Paul Helm, Chief Government Accountant

Financial Statements of the Government of New Zealand
for the Eight Months Ended 28 February 2015
The Financial Statements of the Government of New Zealand for the eight months ended
28 February 2015 were released by the Treasury today. The statements are compared
against forecasts based on the Half Year Economic and Fiscal Update (HYEFU) released
on 16 December 2014.
The total Crown’s operating balance before gains and losses (OBEGAL) was a deficit
of $269 million in the eight-month period, $343 million lower than forecast, reflecting
higher than forecast tax revenue and lower than anticipated core Crown expenses.
Core Crown tax revenue, at $42.4 billion, was 0.4% or $162 million above forecast. This
variance was mainly due to higher than expected other individuals tax ($217 million) and
corporate tax ($91 million). Partially offsetting these, GST was $261 million lower than
forecast primarily due to higher than forecast earthquake-related refunds and weakerthan-forecast growth in nominal consumption.
Core Crown expenses, at $47.2 billion, were $312 million lower than forecast. This
variance was spread over a number of departments.
Net losses on non-financial instruments were $4.3 billion higher than forecast, mainly due
to actuarial losses on the ACC and GSF liabilities mostly reflecting lower interest rates
and a weaker inflation outlook. Partially offsetting the net losses, net gains on financial
instruments were $1.7 billion higher than forecast largely due to favourable market
movements. As a result, the operating balance was a deficit of $952 million ($1.9 billion
below forecast).
The core Crown residual cash position, at a deficit of $3.7 billion, was $428 million
stronger than forecast, mainly due to capital payments being $308 million less than
forecast. Net debt, at $63.5 billion, (26.7% of GDP) was $0.7 billion lower than forecast,
largely reflecting the residual cash result and higher than forecast public demand for
currency in circulation. Gross debt at $87.5 billion (36.8% of GDP) was $3.5 billion
higher than forecast but was mostly matched by an increase in financial assets with no
flow on impact to net debt.
At 28 February, total Crown assets were valued at $263.5 billion and liabilities were
$183.7 billion while the Crown’s share of net worth stood at $74.6 billion.
The Treasury’s next updated economic and fiscal forecasts will be published on
21 May 2015.

 February
2015
Actual1

$ million

Year to date
February
2015 Variance
HYEFU to HYEFU
Forecast1
$m

Variance
to HYEFU
%

Full Year
June
2015
HYEFU
Forecast2

Core Crown
Core Crown tax revenue

42,414

42,252

162

0.4

65,626

Core Crown revenue

46,026

Core Crown expenses

47,231

45,970

56

0.1

71,466

47,543

312

0.7

73,018

Core Crown residual cash

(3,683)

(4,110)

428

10.4

(4,009)

87,470

83,950

(4.2)

80,289

36.8%

35.3%

63,537

64,224

26.7%

27.0%

Operating balance before gains and losses

(269)

(612)

Operating balance

(952)

941

(1,893)

(201.2)

1,900

76,454

(1,884)

(2.5)

77,376

Gross debt

3

as a percentage of GDP
Net debt

4

as a percentage of GDP

(3,519)

33.6%
687

1.1

63,494
26.5%

Total Crown

Net worth attributable to the Crown

74,570

343

56.0

1 Using GDP for the year ended 31 December 2014 of $237,924 million (Source: Statistics New Zealand).
2 Using forecast GDP for the year ended 30 June 2015 of $239,188 million (Source:  Treasury).
3 Gross sovereign‐issued debt excluding settlement cash and Reserve Bank bills.
4 Net core Crown debt excluding student loans and other advances.  Net debt may fluctuate during the year largely
reflecting the timing of tax receipts.

ENDS
For enquiries: Kamlesh Patel
Office of the Government Accountant
Telephone:
+64 4 917 6094
E-mail:
kamlesh.patel@treasury.govt.nz

(572)

 Financial Statements 
of the Government of
New Zealand
For the Eight Months Ended 
28 February 2015

Prepared by the Treasury
10 April 2015

978‐0‐478‐43634‐1 (Print) 
978‐0‐478‐43633‐4 (Online) 

This document is available on the New Zealand Treasury’s internet site.
The URL for this site is http://www.treasury.govt.nz

 

 CONTENTS 
Commentary 
Summary 

2 

Analysis 

4 

Year‐on‐Year Perspective 

7 

Financial Statements 
Statement of Financial Performance 

10 

The statement outlines the operating results of the total Government (ie, the revenues and expenses of all 
departments + Reserve Bank + NZS Fund (core Crown), SOEs (including Air New Zealand), and Crown entities).  
Expense by functional class is also shown for total Crown and core Crown. 

Analysis of Expenses by Functional Classification 

11 

Breakdown of expenses by function for total Crown and core Crown. 

Statement of Comprehensive Revenue and Expense 

12 

The statement reports changes in net worth due to the operating balance, items of revenue or expense that are 
recognised directly in net worth, the effect of certain accounting changes, and corrections of errors. 

Statement of Changes in Net Worth 

12 

The statement provides a reconciliation of opening and closing net worth for the period. 

Statement of Cash Flows 

13 

The statement sets out the cash flows that result from the operating, investing and financing activities of the 
Government.  The net cash flows from operations are reconciled to the operating balance reported in the 
statement of financial performance. 

Statement of Financial Position 

15 

The statement outlines the balance sheet of the total Government (ie, the assets and liabilities of the core Crown, 
SOEs, and Crown entities). 

Statement of Borrowings 

16 

The statement outlines total borrowings (split by sovereign‐guaranteed debt and non sovereign‐guaranteed 
debt), including the calculation of the core Crown debt indicators. 

Statement of Commitments 

17 

The statement outlines the commitments of the total Government by type and segment. 

Statement of Contingent Liabilities and Assets 

17 

The statement outlines the contingent liabilities and assets of the total Government by type and segment. 

Notes to the Financial Statements 

18 

The notes are an integral part of the financial statements, providing further explanatory material to that 
provided in the main statements. 

Officer for Enquiries 
Kamlesh Patel (phone 64‐4‐917‐6094) (E‐mail: kamlesh.patel@treasury.govt.nz) 
Office of the Government Accountant 
The Treasury (1 The Terrace), PO Box 3724, Wellington 
NEW ZEALAND 
Facsimile:  64‐4‐473‐1151 

  

COMMENTARY

SUMMARY 
The Financial Statements of the Government provide a record of the Government’s financial performance for the 
eight months ended 28 February 2015 and its financial position as at that date. 
The February results are reported against forecasts based on the 2014 Half Year Economic and Fiscal Update (HYEFU), 
published on 16 December 2014.   

At a Glance 
Table 1 – Key indicators for the eight months ended 28 February 2015 compared to HYEFU 
February
2015
Actual1

$ million

Year to date
February
2015 Variance
HYEFU to HYEFU
Forecast1
$m

Variance
to HYEFU
%

Full Year
June
2015
HYEFU
Forecast2

Core Crown
Core Crown tax revenue

42,414

42,252

162

0.4

65,626

Core Crown revenue

46,026

45,970

56

0.1

71,466

Core Crown expenses

47,231

47,543

312

0.7

73,018

Core Crown residual cash

(3,683)

(4,110)

428

10.4

(4,009)

87,470

83,950

(4.2)

80,289

36.8%

35.3%

63,537

64,224

26.7%

27.0%

Operating balance before gains and losses

(269)

(612)

Operating balance

(952)

Gross debt

3

as a percentage of GDP
Net debt

4

as a percentage of GDP

(3,519)

33.6%
687

1.1

63,494
26.5%

Total Crown

Net worth attributable to the Crown

74,570

343

56.0

(572)

941

(1,893)

(201.2)

1,900

76,454

(1,884)

(2.5)

77,376

1 Using GDP for the year ended 31 December 2014 of $237,924 million (Source: Statistics New Zealand).
2 Using forecast GDP for the year ended 30 June 2015 of $239,188 million (Source:  Treasury).
3 Gross sovereign‐issued debt excluding settlement cash and Reserve Bank bills.
4 Net core Crown debt excluding student loans and other advances.  Net debt may fluctuate during the year largely
reflecting the timing of tax receipts.

Core Crown includes Ministers, Departments, Offices of Parliament, the NZS Fund and the Reserve Bank of 
New Zealand but excludes State‐owned enterprises and Crown entities. 
Results for the eight months ended 28 February 2015 
The total Crown’s operating balance before gains and losses (OBEGAL) was a deficit of $269 million in the eight‐
month period, $343 million lower than forecast, reflecting higher than forecast tax revenue and lower than 
anticipated core Crown expenses. 
Core Crown tax revenue, at $42.4 billion, was 0.4% or $162 million above forecast.  This variance was mainly due to 
higher‐than‐expected other individuals tax ($217 million) and corporate tax ($91 million).  Partially offsetting these, 
GST was $261 million lower than forecast primarily due to higher‐than‐forecast earthquake‐related refunds and 
weaker‐than‐forecast growth in nominal consumption. 
Core Crown expenses, at $47.2 billion, were $312 million lower than forecast.  This variance was spread over a 
number of departments. 

2

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

 

 Net losses on non‐financial instruments were $4.3 billion higher than forecast, mainly due to actuarial losses on the 
ACC and GSF liabilities mostly reflecting lower interest rates and a weaker inflation outlook.  Partially offsetting the 
net losses, net gains on financial instruments were $1.7 billion higher than forecast largely due to favourable market 
movements.  As a result, the operating balance was a deficit of $952 million ($1.9 billion below forecast). 
The core Crown residual cash position, at deficit of $3.7 billion, was $428 million stronger than forecast, mainly due to 
capital payments being $308 million less than forecast.  Net debt, at $63.5 billion, (26.7% of GDP) was $0.7 billion lower 
than forecast, largely reflecting the residual cash result and higher public demand for currency in circulation.  Gross 
debt at $87.5 billion (36.8% of GDP) was $3.5 billion higher than forecast but was matched by an increase in financial 
assets with no flow on impact to net debt.  
At 28 February, total Crown assets were valued at $263.5 billion and liabilities were $183.7 billion while the Crown’s share 
of net worth stood at $74.6 billion. 
Further analysis of the February results follows. 

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

3

 ANALYSIS 
Table 2 – Key indicator variances for the eight months ended 28 February 2015 compared to HYEFU:  
 
Item/indicator 
Key drivers 
Variance1 

Core Crown 

 

 

Core Crown 
revenue  

$56 million 

Core Crown revenue was higher than forecast mainly due to core Crown 
tax revenue being $162m higher than expected across the following tax 
types:  

higher than forecast 

 Other individuals tax was $217m (7.2%) above forecast largely due 
to higher‐than‐forecast provisional tax payments reflecting stronger 
profitability, mostly amongst non‐farm taxpayers. 
 Corporate tax was $91m (1.6%) above forecast, mainly driven by 
provisional tax being above forecast.  This strength is currently 
expected to remain until June. 
 Customs and excise duties were $68m (2.3%) above forecast mainly 
owing to tobacco excise being above forecast, partly offset by 
lower‐than‐expected fuel excise. 
 GST was $261m (2.3%) below forecast, mainly due to larger‐than‐
forecast earthquake‐related refunds of around $150m, with the 
remainder largely attributable to growth in nominal consumption 
being weaker than was forecast in the HYEFU. 
Offsetting this higher‐than‐forecast tax revenue, petroleum royalties 
were $127m lower than forecast.  This was partly due to timing and 
partly due to a reduction in oil prices. 
Core Crown 
expenses 

Core Crown 
residual cash 
deficit 

$312 million 
lower than forecast 

$428 million 
lower than forecast 

Core Crown expenses at $47.2b were $312m lower than forecast.  
Excluding the top‐down expense adjustment of $428m, underlying 
expenses were $740m lower than expected, spread across a number of 
departments.  The largest variances related to lower than expected 
applications for grants and subsidies and education‐related expenses, 
and delays in finalising treaty settlements.  
The residual cash deficit was $428m lower than forecast. With core 
Crown tax receipts tracking close to forecast, the residual cash deficit 
was largely due to lower than forecast capital payments. 
 Core Crown tax receipts were tracking close to forecast across most 
tax types, consistent with tax revenue, with the exception of 
corporate tax and GST.  Corporate tax receipts were $153m lower 
than forecast largely due to a larger‐than‐forecast movement of 
income tax payments from February to March as a result of the 
28 February due date falling in a weekend.  GST receipts were below 
forecast, similar to GST revenue.
 Capital payments were $308m below forecast largely relating to 
delays in capital projects; in particular Canterbury and defence 
projects. 

Gross debt  

($3,519 million) 
higher than forecast 

Net debt 

$687 million 
lower than forecast 

1 

4

Gross debt at $87.5b (36.8% of GDP) was $3.5b higher than forecast. 
This variance was mainly attributable to increased borrowings and short 
term trading positions.  The increased debt was largely held in financial 
assets so has no flow on impact to net debt. 
Net debt was $63.5b, or 26.7% of GDP, $687m lower than forecast.  
This variance was largely due to the lower than expected residual cash 
deficit explained earlier.  Additionally, $308m was due to greater public 
demand for currency in circulation than had been forecast. 

Favourable variances against forecast have a positive sign and unfavourable variances against forecast have a negative sign. 

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

 Item/indicator 

Variance1 

Key drivers 

Total Crown 

 

 

Operating 
balance before 
gains and losses 
deficit 

$343 million 

The OBEGAL deficit at $269m was $343m lower than forecast. 

Operating 
balance 

($1,893 million) 

lower than forecast 

lower than forecast 

The key drivers of the OBEGAL variance were higher core Crown 
revenue and lower core Crown expenses as previously discussed.  
The operating balance was in deficit by $952m and below forecast by 
$1,893m. 
In addition to the favourable OBEGAL result, the University of 
Canterbury settled its insurance claims arising from the Canterbury 
earthquakes, positively impacting the operating balance by $330m. 
More than offsetting these favourable results, net gains were tracking 
$2,628m below forecast.  The variance in net gains was mainly due to 
actuarial losses on the ACC and Government Superannuation Fund 
(GSF) liabilities ($2,494m and $1,644m respectively) partially offset by 
$1,666m higher than forecast net gains on financial instruments largely 
due to favourable market, interest and FX movements. 

Net worth 
attributable to 
the Crown 

($1,884 million) 
lower than forecast 

Net worth was $74.6b, $1.9b lower than forecast mainly due to a lower 
than forecast operating balance as explained above. 

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

5

 Table 3 – Fiscal strategy and financial results 
28 Feb
2015

Financial Results
Ref

Fiscal Strategy

Taxation as a % of GDP
Operating revenue
Ensure sufficient operating 
revenue to meet the operating 
balance objective

Operating expenses
To control the growth in 
spending so that over time,
core Crown expenses are 
reduced to below 30% of GDP

Operating balance
Return to an operating 
surplus sufficient to meet the 
Government's net capital 
requirements, including 
contributions to the New 
Zealand Superannuation 
Fund, and ensure consistency 
with the debt objective

Annual   

Actual Forecast Variance
$m
$m
$m

2

Variance
%

Forecast
$m

26.7%

26.6%

Core Crown taxation revenue 
...

42,414 

42,252 

162

0.4

65,626 

... combined with other core 
Crown revenue ...

3,612 

3,718 

(106)

(2.9)

5,840 

(47,231)

(47,543)

312

0.7

253 

2,514 

(2,261)

(89.9)

3,452 

... result in an operating 
surplus or deficit...

(952)

941 

(1,893)

(201.2)

1,900 

...with income in SOEs, CEs
and the NZS Fund retained...

(935)

(3,276)

2,341

71.5

... and some items do not 
impact cash ...

794 

1,122 

... leaving operating cash 
flows  to ...

(1,093)

... meet the capital 
expenditure budget ...
... and make advances (e.g. to 
... make advances (e.g. to 
students and DHBs)
students and DHBs)...

... fund core Crown 
expenses...
... and with SOE and Crown 
entity results and core Crown 
gains and losses...

... and receive proceeds from 
government share offers ....

Debt
Manage total debt at prudent 
levels ensuring net debt is 
reduced to a level no higher 
than 20% of GDP by 2020.  
Beyond 2020, maintain net 
debt within a range of around 
10% to 20% of GDP over the 
economic cycle 

28 Feb
2015

1

27.4%

(73,018)

(4,615)

(328)

(29.2)

(1,213)

120

9.9

40 

(1,278)

(1,445)

167

11.6

(2,126)

(1,312)

(1,452)

141

9.7

(2,551)

‐  

‐  

‐  

‐  

2,755 

628 

With the residual cash  ...

(3,683)

(4,110)

... when combined with 
opening net debt ...

59,931 

59,931 

(77)

183 

259

142.0

(446)

... results in a closing net 
debt   ...

63,537 

64,224 

687

1.1

63,494 

...  and as a % of GDP

26.7%

27.0%

... and fair value movements  
and other changes in 
financial assets and financial 
liabilities ...

428

10.4

‐  

(4,009)

‐  

59,931

26.5%

 
1

GDP for the eight months ended 28 February 2015 (actual and forecast) is the actual data for the year ended 31 December 2014 (Source: 
Statistics New Zealand) pro‐rated for eight months. 

2

Percentage variances between the actual and comparative balances exceeding 500% are not shown. 

 

6

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

 YEAR‐ON‐YEAR PERSPECTIVE 
Table 4 – Comparison with previous year 
February
2015

February
2014

Actual 
$m 

Actual 
$m 

Change1
$m

Change
%

42,414
3,612

39,471
3,705

2,943
(93)

7.5
(2.5)

46,026

43,176

2,850

6.6

15,700
229
9,969
8,107
2,642
2,339
1,245
1,308
1,400
428
549
434
235
83
2,563

15,182
170
9,805
7,845
2,633
2,282
1,202
1,320
1,374
440
546
307
247
127
2,376

47,231

45,856

936

1,287

(269)

(1,393)

1,124

80.7

(1,208)
525

4,961
153

(6,169)
372

(124.3)
243.1

(952)

3,721

(4,673)

(125.6)

Statement of Financial Performance
Core Crown Revenue
Taxation revenue
Other revenue
Total core Crown revenue
Core Crown Expenses
Social security and welfare
GSF pension expenses
Health
Education
Core government services
Law and order
Defence
Transport and communications
Economic and industrial services
Primary services
Heritage, culture and recreation
Environmental protection
Housing and community development
Other
Finance costs
Total core Crown expenses
Net surplus of SOE/CE's (and inter‐segment 
eliminations)
OBEGAL
Total gains/(losses)
Other operating items
Operating balance
Core Crown residual cash

518
59
164
262
9
57
43
(12)
26
(12)
3
127
(12)
(44)
187

3.4
34.7
1.7
3.3
0.3
2.5
3.6
(0.9)
1.9
(2.7)
0.5
41.4
(4.9)
(34.6)
7.9

1,375
(351)

3.0
(27.3)

268

6.8

83,328

4,141

5.0

60,038

3,499

5.8

(3,683)

(3,951)

Gross debt2 

87,470

Net debt3

63,537

Debt indicators

1

Due to the seasonal nature of some expenditure it is not appropriate to annualise these changes. 

2

Gross sovereign‐issued debt excluding settlement cash and Reserve Bank bills. 

3

Net core Crown debt excluding NZS Fund, student loans and other advances. 

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

 

7

 Revenue and Expenses 
Core Crown taxation revenue for the eight months ended 28 February 2015 increased by $2,943 million (7.5%) on the 
same period last year.  Improving macroeconomic conditions have led to growth in other direct taxes (13.6%), other 
individuals tax (12.3%), corporate tax (12.4%) and GST (5.1%).  
Total core Crown expenses increased by 3.0% on the same period last year. The main increases relate to the 
following: 
Functional expense 

Movement from 
previous year 

Main drivers of the change 

Increases: 

 

 

Social security and welfare 

+ $518 million 

Indexation of welfare benefits and increase in recipient 
numbers, particularly NZ Superannuitants. 

Education 

+ $262 million 

Funding provided in the 2014 Budget to maintain and 
improve existing service levels. 

Finance costs 

+ $187 million 

A direct result of the increased debt levels currently held. 

Health 

+ $164 million 

Funding provided in the 2014 Budget to maintain and 
improve existing service levels. 

Environmental protection 

+ $127 million 

$103 million of this relates to the Crown’s signing of the Deed 
of Indemnity with Solid Energy. 

Other functional class 

+ $117 million 

 

Total 

$1,375 million 

 

  

Gains/Losses 
Total net losses were $1,208 million in the eight months to February 2015, compared to gains of $4,961 million in the 
previous year due largely to the actuarial losses on the ACC and GSF liability in the current period.   

Debt 
Gross debt has increased by $4,141 million or 5.0% from February 2014.  Net debt has increased by $3,499 million or 
5.8% over the same time, largely owing to continued cash deficits. 

 

8

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

  

FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL PERFORMANCE 
for the eight months ended 28 February 2015 
Year
to 30 Jun
2014
Actual
$m
60,879

8 months
to 28 Feb
2014
Actual
$m

Current Year Actual vs Forecast
Note

Revenue
39,051 Taxation revenue
3,670 Other sovereign revenue

Actual Forecast
$m
$m

Variance
$m

%

Annual
Forecast
$m

2

41,962

41,880

82

0.2

65,041

2

3,531

3,381

150

4.4

5,103

66,329

Total Revenue Levied through the
42,721      Crown's Sovereign Power

45,493

45,261

232

0.5

70,144

16,472

10,671 Sales of goods and services

10,938

10,885

53

0.5

16,645

2,213

2,342

(129)

(5.5)

3,709

5,450

3,175

2,015 Interest revenue and dividends

3,420

2,200 Other revenue

3

2,314

2,508

(194)

(7.7)

3,802

23,067

Total revenue earned through
14,886      the Crown's operations

15,465

15,735

(270)

(1.7)

24,156

89,396

57,607 Total revenue (excluding gains)

60,958

60,996

(38)

(0.1)

94,300

23,360

Expenses
15,311 Transfer payments and subsidies

4

15,555

15,669

114

0.7

23,890

20,484

13,464 Personnel expenses

5

13,931

13,930

(1)

‐  

21,058

6

3,153

3,061

(92)

(3.0)

4,844

7

23,155

23,881

726

3.0

37,209

4,400

2,940 Finance costs

8

3,001

3,082

81

2.6

4,665

3,501

1,752 Insurance expenses

9

4,872
35,553

2,867 Depreciation and amortisation
22,666 Other operating expenses

2,248

2,150

(98)

(4.6)

3,678

‐  

‐   Forecast new operating spending

‐  

‐  

‐  

‐  

123

‐  

‐   Top‐down expense adjustment

‐  

(428)

(428)

(100.0)

92,170
(159)
(2,933)

59,000 Total expenses (excluding losses)

61,043

Minority interests share of operating
‐        balance before gains/(losses)
(1,393)

Operating balance before gains/(losses) 
(excluding minority interests)

61,345

302

0.5

(950)
94,517

(184)

(263)

79

30.0

(355)

(269)

(612)

343

56.0

(572)

Net gains/(losses) on financial
4,841

3,508      instruments

540

1,453      instruments

10

4,829

3,089

1,740

56.3

3,938

11

(6,037)

(1,743)

(4,294)

(246.4)

(1,782)

(1,208)

1,346

(2,554)

(189.7)

2,156

153.6

316

(201.2)

1,900

Net gains/(losses) on non‐financial

5,381
360
2,808

4,961 Total gains/(losses)
Net surplus/(deficit) from associates
153      and joint ventures
3,721

Operating balance (excluding minority 
interests)

525

207

(952)

941

318
(1,893)

 
 
 
 
 
 
The accompanying notes and accounting policies are an integral part of these statements. 

10

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

 

 ANALYSIS OF EXPENSES BY FUNCTIONAL CLASSIFICATION 
for the eight months ended 28 February 2015 
Year
to 30 Jun
2014
Actual
$m

8 months
to 28 Feb
2014
Actual
$m

27,266
295
14,344
13,064
4,104
3,730
1,776
9,137
7,767
2,372
1,703
1,095
538
579
4,400
‐  
‐  

17,645
177
9,436
8,521
2,380
2,424
1,177
5,719
4,709
1,555
1,122
762
306
127
2,940
‐  
‐  

92,170

59,000 Total Crown expenses excluding losses

Current Year Actual vs Forecast
Actual Forecast
$m
$m
Total Crown expenses
Social security and welfare
GSF pension expenses
Health
Education
Core government services
Law and order
Defence
Transport and communications
Economic and industrial services
Heritage, culture and recreation
Primary services
Housing and community development
Environmental protection
Other
Finance costs
Forecast new operating spending
Top‐down expense adjustment

%

Annual
Forecast
$m

‐  
4.8
0.4
1.7
8.9
1.1
1.9
3.3
(6.9)
5.2
3.7
12.7
4.0
46.1
2.6
‐  
(100.0)

28,200
376
14,828
13,595
4,483
3,857
1,928
9,545
7,703
2,293
1,888
1,152
563
268
4,665
123
(950)

Variance
$m

18,345
238
9,776
8,722
2,407
2,506
1,212
5,721
5,367
1,480
1,159
694
332
83
3,001
‐  
‐  

18,344
250
9,817
8,874
2,643
2,534
1,235
5,915
5,019
1,562
1,203
795
346
154
3,082
‐  
(428)

(1)
12
41
152
236
28
23
194
(348)
82
44
101
14
71
81
‐  
(428)

61,043

61,345

302

0.5

94,517

Below is an analysis of core Crown expenses by functional classification.  Core Crown expenses include expenses
incurred by the Crown, Departments and the Reserve Bank, but not Crown entities and SOEs.
Year
to 30 Jun
2014
Actual
$m

8 months
to 28 Feb
2014
Actual
$m

23,281
282
14,898
12,300
4,502
3,501
1,811
2,237
2,058
842
676
347
533
579
3,620
‐  
‐  

15,182
170
9,805
7,845
2,633
2,282
1,202
1,320
1,374
546
440
247
307
127
2,376
‐  
‐  

71,467

45,856 Core Crown expenses excluding losses

Current Year Actual vs Forecast
Actual Forecast
$m
$m
Core Crown expenses
Social security and welfare
GSF pension expenses
Health
Education
Core government services
Law and order
Defence
Transport and communications
Economic and industrial services
Heritage, culture and recreation
Primary services
Housing and community development
Environmental protection
Other
Finance costs
Forecast new operating spending
Top‐down expense adjustment

%

Annual
Forecast
$m

0.7
4.6
0.4
1.2
8.4
0.8
1.8
1.1
4.9
3.0
4.0
4.1
2.3
46.1
(0.5)
‐  
(100.0)

23,917
360
15,110
12,861
4,839
3,595
1,977
2,297
2,239
781
754
372
659
268
3,816
123
(950)

Variance
$m

15,700
229
9,969
8,107
2,642
2,339
1,245
1,308
1,400
549
428
235
434
83
2,563
‐  
‐  

15,807
240
10,009
8,207
2,883
2,358
1,268
1,323
1,472
566
446
245
444
154
2,549
‐  
(428)

107
11
40
100
241
19
23
15
72
17
18
10
10
71
(14)
‐  
(428)

47,231

47,543

312

0.7

73,018

 

 
 
The accompanying notes and accounting policies are an integral part of these statements.

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

11 

 STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSE 
for the eight months ended 28 February 2015 
Year
to 30 Jun
2014
Actual
$m
2,946

8 months
to 28 Feb
2014
Actual
$m
3,721

5,395

(347)

(34)

(65)

(51)

(28)

(36)
1
5,275

(117)
49
(508)

Current Year Actual vs Forecast
Actual
$m

Operating Balance (including minority interest)
Other comprehensive revenue and expense
Revaluation of physical assets
Net change in hedging instruments entered
   into for cash flow hedges
Foreign currency translation differences
      for foreign operations
Valuation gains/(losses) on investments
     available for sale taken to reserves
Other movements
Total other comprehensive revenue and expense

(768)

Forecast
$m
1,241

Variance
$m
(2,009)

%

(161.9)

Annual
Forecast
$m
2,291

(13)

(19)

6

31.6

(9)

(44)

(82)

38

46.3

(50)

7

12

(5)

(41.7)

11

24
(7)
(33)

25
(1)
(65)

(1)
(6)
32

(4.0)
‐  
49.2

19
(13)
(42)

8,221

3,213 Total comprehensive revenue and expense

(801)

1,176

(1,977)

(168.1)

2,249

147
8,074

Attributable to:
‐    ‐ minority interest
3,213  ‐ the Crown

197
(998)

290
886

(93)
(1,884)

(32.1)
(212.6)

441
1,808

8,221

3,213 Total comprehensive revenue and expense

(801)

1,176

(1,977)

(168.1)

2,249

 

 
STATEMENT OF CHANGES IN NET WORTH 
for the eight months ended 28 February 2015 
Year
to 30 Jun
2014
Actual
$m
70,011
2,946
5,395
(2)
(43)
(75)
8,221
(577)
3,308
(184)
80,779

8 months
to 28 Feb
2014
Actual
$m
70,011 Opening net worth

Current Year Actual vs Forecast
Actual
$m

Variance
$m

80,779

80,779

‐  

‐  

(768)
(13)
(22)

1,241
(19)
(57)

(2,009)
6
35

(161.9)
31.6
61.4

2,291
(9)
38

‐  
2

(8)
19

8
(17)

100.0
(89.5)

(7)
(64)

3,213 Total comprehensive revenue and expense
(361) Gain/(loss) on Government share offers in SOEs
Increase in minority interest from Government
2,423    share offers
105 Transactions with minority interests

(801)

(1,977)

(168.1)

‐  

‐  

‐  

‐  

‐  

‐  
(174)

‐  
(240)

‐  
66

‐  
27.5

‐  
(468)

(1,911)

(2.3)

79,804

1,176

81,715

 
The accompanying notes and accounting policies are an integral part of these statements. 

12

%

Annual
Forecast
$m

3,721 Operating balance (including minority interest)
(347) Net revaluations
(185) Transfers to/(from) reserves
(Gains)/losses transferred to the
(2)    Statement of Financial Performance
26 Other movements

75,391 Closing net worth

80,779

Forecast
$m

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

2,249

82,560

 

 STATEMENT OF CASH FLOWS 
for the eight months ended 28 February 2015 
Year
to 30 Jun
2014
Actual
$m

8 months
to 28 Feb
2014
Actual
$m

Current Year Actual vs Forecast
Actual Forecast
$m
$m
Cash Flows from Operations 
Cash was provided from
Taxation receipts
Other sovereign receipts
Sales of goods and services
Interest and dividends receipts
Other operating receipts

59,853
4,974
16,608
2,945
5,737

38,728
3,555
10,500
1,860
3,812

90,117

58,455 Total cash provided from operations

23,447
59,891
4,312
‐  
‐  

15,800
40,033
2,317
‐  
‐  

87,650
2,467

Variance
$m

40,590
3,481
11,231
2,096
2,636

40,609
3,247
11,227
2,031
2,917

60,034

60,031

15,733
40,607
2,471
‐  
‐  

15,799
41,845
2,698
‐  
(428)

66
1,238
227
‐  
(428)

58,150 Total cash disbursed to operations

58,811

59,914

1,103

305 Net cash flows from operations

1,223

117

1,106

Cash was disbursed to
Transfer payments and subsidies
Personnel and operating payments
Interest payments
Forecast new operating spending
Top‐down expense adjustment

(19)
234
4
65
(281)
3

%

Annual
Forecast
$m

‐  
7.2
‐  
3.2
(9.6)

64,129
4,673
16,759
3,660
4,535

‐  

93,756

0.4
3.0
8.4
‐  
(100.0)
1.8
‐  

24,015
62,143
4,964
123
(950)
90,295
3,461

Cash Flows from Investing Activities
(5,503)
(5,725)
(658)
(1,529)
73
‐  
‐  
(13,342)
(10,875)

Cash was provided from/(disbursed to)
(3,442) Net (purchase)/sale of physical assets
Net (purchase)/sale of shares and other 
(3,607)      securities
(394) Net (purchase)/sale of intangible assets
(925) Net (issue)/repayment of advances
96 Net acquisition of investments in associates 
‐   Forecast new capital spending
‐   Top‐down capital adjustment
(8,272) Net cash flows from investing activities
Net cash flows from
(7,967)     operating and investing activities

(3,745)

(4,436)

691

15.6

(7,767)

(1,672)
(353)
(1,196)
84
‐  
‐  

(1,033)
(386)
(1,735)
(40)
‐  
259

(639)
33
539
124
‐  
(259)

(61.9)
8.5
31.1
310.0
‐  
(100.0)

3,747
(385)
(2,043)
(42)
(113)
575

(6,882)

(7,371)

489

6.6

(6,028)

(5,659)

(7,254)

1,595

22.0

(2,567)

215.4

Cash Flows from Financing Activities
274
2,186
5,520
1,442
(832)
(166)
8,424
(2,451)
14,924

Cash was provided from/(disbursed to)
357 Issues of circulating currency
Net proceeds from Government share offer
1,498      programme
5,928 Net issue/(repayment) of Government bonds
Net issue/(repayment) of foreign currency
136      borrowing
Net issue/(repayment) of other New Zealand
(841)      dollar borrowing
‐   Dividends paid to minority interests
7,078 Net cash flows from financing activities
(889) Net movement in cash
14,924 Opening cash balance

451

143

308

‐  
4,801

‐  
4,956

‐  
(155)

‐  
(3.1)

598
(547)

(1,541)

(1,063)

(478)

(45.0)

(1,447)

2,437
(293)

1,870
(243)

567
(50)

30.3
(21)

3,126
(398)

5,855

5,663

192

3.4

1,462

196
11,888

(1,591)
11,888

1,787
‐  

112.3
‐  

130

(1,105)
11,888

Foreign‐exchange gains/(losses) on
(585)
11,888

(374)      opening cash 
13,661 Closing cash balance

443

373

70

18.8

383

12,527

10,670

1,857

17.4

11,166

 

The accompanying notes and accounting policies are an integral part of these statements. 

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

13 

 STATEMENT OF CASH FLOWS (CONTINUED) 
for the eight months ended 28 February 2015 
Year
to 30 Jun
2014
Actual
$m

8 months
to 28 Feb
2014
Actual
$m

Current Year Actual vs Forecast
Actual Forecast
$m
$m

Variance
$m

%

Annual
Forecast
$m

Reconciliation Between the Net Cash Flows from 
Operations and the Operating Balance
2,467

4,841
540
5,381

(4,872)
(789)
(47)
442
1,409
202
(3,655)

(1,553)
143
(41)
39
(248)
275
(1,385)
2,808

305 Net Cash Flows from Operations
Items included in the operating balance
     but not in net cash flows from operations
Gains/(losses)
3,508 Net gains/(losses) on financial instruments
Net gains/(losses) on non‐financial
1,453      instruments
4,961 Total gains/(losses)
Other Non‐cash Items in Operating Balance
(2,867) Depreciation and amortisation
Write‐down on initial recognition of
(534)      financial assets
Impairment of financial assets
(6)      (excluding receivables)
Decrease/(increase) in defined benefit
325      retirement plan liabilities
3,014 Decrease/(increase) in insurance liabilities
152 Other
84 Total other non‐cash Items

(3,367)
(468)
(29)
176
43
2,016

Movements in Working Capital
Increase/(decrease) in receivables
Increase/(decrease) in accrued interest
Increase/(decrease) in inventories
Increase/(decrease) in prepayments
Decrease/(increase) in deferred revenue

Decrease/(increase) in payables/provisions
(1,629) Total movements in working capital
3,721 Operating balance (excluding minority interests)

1,223

117

1,106

‐  

3,461

4,829

3,089

1,740

56.3

3,938

(6,037)
(1,208)

(1,743)

(4,294)

(246.4)

1,346

(2,554)

(189.7)

(1,782)
2,156

(3,153)

(3,061)

(92)

(3.0)

(4,844)

(474)

(499)

25

5.0

(786)

(27)

(16)

(11)

(68.8)

(125)

261
2,319
344
(730)

277
2,578
(56)

(16)
(259)
400

(5.8)
(10.0)
‐  

(777)

47

6.0

399
968
(39)
(4,427)

(1,608)
(414)
(10)
152
(115)
1,758
(237)

(1,432)
(73)
31
109
118
1,502
255

(952)

941

(176)
(341)
(41)
43
(233)
256
(492)

(12.3)
(467.1)
(132.3)
39.4
(197.5)
17.0
(192.9)

710

(1,893)

(201.2)

1,900

 
 
 
 
 
 
 
 
 
The accompanying notes and accounting policies are an integral part of these statements. 
14

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

385
349
3
(64)
12
25

 

 STATEMENT OF FINANCIAL POSITION 
as at 28 February 2015 
As at
30 Jun
2014
Actual
$m

As at
28 Feb
2014
Actual
$m

Current Year Actual vs Forecast
Note

Assets
13,661 Cash and cash equivalents
15,821 Receivables
Marketable securities, deposits and
48,457
46,915      derivatives in gain
20,596
19,853 Share investments
24,756
23,692 Advances
1,099
1,111 Inventory
2,510
2,651 Other assets
116,306 110,551 Property, plant and equipment
1 
10,071
9,710 Equity accounted investments 
2,920
2,861 Intangible assets and goodwill
‐  
‐   Forecast for new capital spending
‐  
‐   Top‐down capital adjustment
11,888
17,480

256,083

246,826 Total assets

4,964
11,294
1,962
103,419
35,825
10,885
6,955

5,047
10,503
1,672
103,328
33,584
11,040
6,261

175,304

171,435 Total liabilities

80,779

Liabilities
Issued currency
Payables
Deferred revenue
Borrowings
Insurance liabilities
Retirement plan liabilities
Provisions

62,225
43
75,568

70,923 Total net worth attributable to the Crown

5,211
80,779

Net worth attributable to
4,468     minority interest
75,391 Total net worth

Forecast        Variance
$m
$m

%

Annual
Forecast
$m

13
13

12,527
15,964

10,670
16,234

1,857
(270)

17.4
(1.7)

11,166
17,602

13
13
13

49,619
24,048
26,323
1,090
2,626
117,652
10,652
2,966
‐  
‐  

48,838
22,091
25,952
1,130
2,612
118,433
10,421
2,970
‐  
(259)

781
1,957
371
(40)
14
(781)
231
(4)
‐  
259

1.6
8.9
1.4
(3.5)
0.5
(0.7)
2.2
(0.1)
‐  
100.0

45,459
22,718
26,428
1,102
2,279
120,046
10,519
3,066
113
(575)

263,467

259,092

4,375

1.7

259,923

5,415
10,419
2,077
109,272
37,316
12,673
6,491

5,107
10,879
1,845
107,794
34,564
11,013
6,175

(308)
460
(232)
(1,478)
(2,752)
(1,660)
(316)

(6.0)
4.2
(12.6)
(1.4)
(8.0)
(15.1)
(5.1)

5,153
12,319
1,950
104,442
36,173
10,891
6,435

183,663

177,377

(6,286)

(3.5)

177,363

79,804

81,715

(1,911)

(2.3)

82,560

20

12,431

14,303

(1,872)

(13.1)

15,271

20
20

62,167
(28)

62,196
(45)

(29)
17

‐  
37.8

62,153
(48)

74,570

76,454

(1,884)

(2.5)

77,376

5,234

5,261

(27)

(0.5)

5,184

79,804

81,715

(1,911)

(2.3)

82,560

14
15

17

18
19

75,391 Total assets less total liabilities

Net Worth
14,339 Taxpayers' funds
Property, plant and equipment revaluation 
56,677     reserve
(93) Other reserves

13,300

Actual
$m

20

1.  Tertiary education institutions constitute most equity accounted investments.

 
 
 
 
 
 
 
The accompanying notes and accounting policies are an integral part of these statements. 

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

 

15 

 STATEMENT OF BORROWINGS 
as at 28 February 2015 
As at
30 Jun
2014
Actual
$m
60,337
3,147
183
7,758
2,245
1,501
28,248
103,419
77,461
25,958
103,419
89,090
(622)
88,468

As at
28 Feb
2014
Actual
$m
62,029
3,349
189
6,877
2,176
1,480
27,228

Current Year Actual vs Forecast

Government bonds1
Treasury bills
Government retail stock
Settlement deposits with Reserve Bank
Derivatives in loss
Finance lease liabilities
Other borrowings

103,328 Total borrowings
78,045 Sovereign‐guaranteed debt
25,283 Non sovereign‐guaranteed debt
103,328 Total borrowings
Net Debt:
2
89,457 Core Crown borrowings
Add back NZS Fund holdings of sovereign‐
(415)      issued debt and NZS Fund borrowings
89,042 Gross sovereign‐issued debt

3
4

Actual Forecast
$m
$m
63,224
62,485
4,134
3,678
179
182
7,143
7,695
3,056
2,823
1,866
1,853
29,670
29,078

Variance
$m
%
(739)
(1.2)
(456)
(12.4)
3
1.6
552
7.2
(233)
(8.3)
(13)
(0.7)
(592)
(2.0)

Annual
Forecast
$m
58,375
4,129
181
7,695
2,680
1,991
29,391

109,272

107,794

(1,478)

(1.4)

104,442

81,496
27,776

79,503
28,291

(1,993)
515

(2.5)
1.8

75,862
28,580

109,272

107,794

(1,478)

(1.4)

104,442

94,569

91,264

(3,305)

(3.6)

87,604

(1,145)

(846)

299

35.3

(847)

93,424

90,418

(3,006)

(3.3)

86,757

68,047

67,171 Less core Crown financial assets

73,003

67,978

5,025

7.4

65,846

20,421

21,871 Net core Crown debt

20,421

22,440

2,019

9.0

20,911

13,753

13,534 Add back core Crown advances

14,313

14,231

(0.6)

14,502

34,174

35,405 Net core Crown debt (incl NZS Fund)5

34,734

36,671

1,937

5.3

35,413

28,803

27,553

(1,250)

(4.5)

28,081

63,537

64,224

1.1

63,494

93,424

90,418

(3,006)

(3.3)

86,757

(7,554)

(8,068)

(513)

(6.4)

(8,068)

1,600

1,600

‐  

‐  

1,600

87,470

83,950

(3,519)

(4.2)

80,289

25,757
59,931

88,468
(8,112)
1,600
81,956

Add back NZS Fund holdings of core Crown
6
24,633    financial assets and NZS Fund fin assets
Net core Crown debt (excl NZS Fund and 
60,038
advances)7
Gross Debt:
89,042 Gross sovereign‐issued debt3
Less Reserve Bank settlement cash and 
(7,314)      Reserve Bank bills
Add back changes to DMO borrowing due 
8
1,600      to settlement cash
83,328

Gross sovereign‐issued debt excluding Reserve 
Bank settlement cash and Reserve bank bills

(82)

687

Notes on borrowings:
Total borrowings can be split into sovereign‐guaranteed and non‐sovereign‐guaranteed debt. This split reflects the fact that borrowings by SOEs and Crown
entities are not explicitly guaranteed by the Crown.  No debt of SOEs and Crown entities is currently guaranteed by the Crown.
1.  Government bonds includes $395 million of infrastructure bonds.
2.  Core Crown borrowings in this instance includes unsettled purchases of securities (classified as accounts payable in the statement of financial position).
3.  Gross Sovereign‐Issued Debt (GSID) represents debt issued by the sovereign (the core Crown) and includes Government stock held by the New
Zealand Superannuation Fund (NZS Fund), ACC and EQC. 
4.  Core Crown financial assets exclude receivables.
5.  Net Core Crown Debt represents GSID less financial assets.  This can provide information about the sustainability of the Government's accounts,
and is used by some international agencies when determining the creditworthiness of a country.
6.  Adding back the NZS Fund assets provides the financial liabilities less financial assets of the Core Crown, excluding those assets set aside to meet
part of the future cost of New Zealand superannuation. 
7.  Net Core Crown Debt (excluding NZS Fund and advances) excludes financial assets which are held for public policy rather than treasury
management purposes.
8.  The Reserve Bank has used $1.6 billion of settlement cash to purchase reserves that were to have been funded by the NZ Debt Management Office
borrowing. Therefore, the impact of settlement cash on GSID is adjusted by this amount.

The accompanying notes and accounting policies are an integral part of these statements. 

16

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

 

 STATEMENT OF COMMITMENTS 
as at 28 February 2015 
As at
28 Feb
2015
$m

As at
30 Jun
2014
$m

As at
28 Feb
2014
$m

Capital Commitments
Specialist military equipment
Land and buildings
Other property, plant and equipment
Other capital commitments
Tertiary Education Institutions

490
1,171
5,521
847
201

732
878
5,307
919
201

506
896
5,126
915
169

Total capital commitments

8,230

8,037

7,612

Operating Commitments
Non‐cancellable accommodation leases
Other non‐cancellable leases
Tertiary Education Institutions

2,845
2,392
494

3,059
2,340
494

2,646
2,559
466

Total operating commitments

5,731

5,893

5,671

Total commitments

13,961

13,930

13,283

Total Commitments by Segment
Core Crown
Crown entities 
State‐owned Enterprises
Inter‐segment eliminations

4,708
5,346
5,028
(1,121)

4,916
5,465
4,847
(1,298)

4,489
5,313
5,012
(1,531)

Total commitments  

13,961

13,930

13,283

 

 

STATEMENT OF CONTINGENT LIABILITIES AND ASSETS 
as at 28 February 2015 
As at
28 Feb
2015
$m

As at
30 Jun
2014
$m

As at
28 Feb
2014
$m

Quantifiable Contingent Liabilities
Guarantees and indemnities
Uncalled capital
Legal proceedings and disputes
Other contingent liabilities

235
5,659
467
373

222
5,662
604
357

172
5,939
674
418

Total quantifiable contingent liabilities

6,734

6,845

7,203

Total Quantifiable Contingent Liabilities by Segment
Core Crown
Crown entities 
State‐owned Enterprises
Inter‐segment eliminations

6,473
42
219
‐  

6,568
44
233
‐  

6,917
52
234
‐  

Total quantifiable contingent liabilities

6,734

6,845

7,203

Quantifiable Contingent Assets
Core Crown
Crown entities 
State owned enterprises
Inter‐segment eliminations

140
4
12
‐  

129
4
‐  
‐  

201
4
‐  
‐  

Total quantifiable contingent assets

156

133

205

A list of unquantifiable contingent liabilities is included on the Treasury's website 
http://www.treasury.govt.nz/budget/forecasts/hyefu2014/041.htm

The accompanying notes and accounting policies are an integral part of these statements. 

 

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

17 

 NOTES TO THE FINANCIAL STATEMENTS 
 

NOTE 1:  Accounting Policies 
Reporting Entity 
These financial statements are the consolidated financial statements for the Government reporting entity as specified 
in Part III of the Public Finance Act 1989.  This comprises: 
 Ministers of the Crown 

 Crown Entities (excluding Tertiary Education Institutions)  

 Government Departments 

 Air New Zealand Limited 

 Offices of Parliament  

 Organisations listed in Schedule 4 and 4A of the Public Finance 
Act 1989 

 New Zealand Superannuation Fund 
 Reserve Bank of New Zealand  
 State‐Owned Enterprises (SOEs) 

 Organisations listed in Schedule 5 of the Public Finance Act 1989 
 Organisations listed in Schedule 6 of the Public Finance Act 1989 

A schedule of the entities that are included in the Government reporting entity was set out on pages 91 ‐ 93 of the 
2014 Half Year Economic and Fiscal Update released on 16 December 2014. 
With the exception of the 30 June 2014 comparative figures, all actual, forecast and comparative figures presented in 
these financial statements are unaudited. 
Basis of Preparation and General Accounting Policies 
These unaudited interim financial statements of the Government reporting entity comply with generally accepted 
accounting practice as defined in the Financial Reporting Act 2013 and have been prepared in accordance with Public 
Sector PBE Accounting Standards (PBE Standards), including PBE IAS 34 Interim Financial Reporting.  The Government 
reporting entity is a public benefit entity.  Public benefit entities (PBEs) are reporting entities whose primary objective 
is to provide goods or services for community or social benefit and where any equity has been provided with a view to 
supporting that primary objective rather than for a financial return to equity holders. 
These financial statements are prepared in accordance with PBE Standards.  There were no material adjustments as a 
result of transitioning to PBE standards. 
The measurement base applied is historical cost adjusted for revaluations of property, plant and equipment (where 
appropriate), commercial forests; and marketable securities, deposits and equity investments held for trading 
purposes.  The accrual basis of accounting has been used unless otherwise stated. 
These financial statements have been prepared on a going concern basis. 
Specific Accounting Policies 
The specific accounting policies of the Crown are detailed on the Treasury’s internet site: 
http://www.treasury.govt.nz/publications/guidance/reporting/accounting 
Forecasts 
The annual forecasts in these financial statements are for the year to 30 June 2015. 
The accounting policies underlying the preparation of forecasts are set out in the Statement of Accounting Policies 
reproduced in full on the Treasury’s internet site: 
http://www.treasury.govt.nz/publications/guidance/reporting/accounting 

18

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

 NOTES TO THE FINANCIAL STATEMENTS 
 

NOTE 1:  Accounting Policies (continued) 
Comparative Figures 
When presentation or classification of items in the financial statements is amended or accounting policies are 
changed voluntarily, comparative figures have been restated to ensure consistency with the current period unless it is 
impracticable to do so. 
Variance Percentages 
Percentage variances between the actual and comparative balances exceeding 500% are not shown. 
Judgements and Estimates 
The preparation of these financial statements requires judgements, estimates and assumptions that affect the 
application of policies and reported amounts of assets and liabilities, income and expenses.  For example, the present 
value of large cash flows that are predicted to occur a long time into the future, as with the settlement of ACC 
outstanding claim obligations and Government Superannuation retirement benefits, depends critically on judgements 
regarding future cash flows, including inflation assumptions and the risk free discount rate used to calculate present 
values.  The estimates and associated assumptions are based on historical experience and various other factors that 
are believed to be reasonable under the circumstances.  Actual results may differ from these estimates.  
A further area of uncertainty relates to the estimation of the claims and provisions arising from the Canterbury 
earthquakes.  The estimates and associated assumptions are based on historical experience and various other factors 
that are believed to be reasonable under the circumstances.  Actual results may differ from these estimates. 
The estimates and underlying assumptions are reviewed on an ongoing basis.  Revisions to accounting estimates are 
recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the 
revision and future periods if the revision affects both current and future periods. 

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

19 

 NOTES TO THE FINANCIAL STATEMENTS 
 

 Year
to 30 Jun
2014
Actual
$m

8 months
to 28 Feb
2014
Actual
$m

Current Year Actual vs Forecast
Actual Forecast
$m
$m

Variance
$m

%

Annual
Forecast
$m

NOTE 2:  Sovereign Revenue (Accrual)
Taxation Revenue (accrual)
Individuals
Source deductions
Other persons
Refunds
Fringe benefit tax

23,738
5,216
(1,573)
489

15,728
3,304
(754)
326

27,870

18,604 Total individuals

9,020
(192)
428
8

4,570
(107)
267
(1)

9,264

Corporate Tax
Gross companies tax
Refunds
Non‐resident withholding tax
Foreign‐source dividend w/holding payments

16,709
3,619
(728)
340

16,685
3,421
(737)
330

24
198
9
10

0.1
5.8
1.2
3.0

25,034
5,347
(1,517)
505

19,940

19,699

241

1.2

29,369

5,112
(75)
286
(4)

5,151
(95)
262
(5)

(39)
20
24
1

(0.8)
21.1
9.2
20.0

4,729 Total corporate tax

5,319

5,313

6

0.1

10,106

1,644
446

Other Direct Income Tax
1,012 Resident w/holding tax on interest income
253 Resident w/holding tax on dividend income

1,122
314

1,121
296

1
18

0.1
6.1

1,813
494

2,090

1,265 Total other direct income tax

1,436

1,417

19

1.3

2,307

39,224

24,598 Total income tax

26,695

26,429

266

1.0

41,782

27,208
(11,191)

Goods and Services Tax
17,911 Gross goods and services tax
(7,359) Refunds

18,611
(7,519)

19,040
(7,687)

(429)
168

(2.3)
2.2

28,799
(11,428)

16,017

10,552 Total goods and services tax

11,092

11,353

(261)

(2.3)

17,371

851
1,034
631
1,216
117
144
125
35
22

838
1,108
632
1,077
111
142
131
38
21

13
(74)
(1)
139
6
2
(6)
(3)
1

1.6
(6.7)
(0.2)
12.9
5.4
1.4
(4.6)
(7.9)
4.8

1,246
1,709
923
1,358
157
213
199
50
33

4,175

4,098

77

1.9

5,888

Other Indirect Taxation
Road user charges
Petroleum fuels excise1
Alcohol excise1
Tobacco excise1

1,205
1,612
892
1,272
172
211
187
52
35

793
1,031
606
1,029
120
142
123
37
20

5,638

3,901 Total other indirect taxation

Other customs duty
Gaming duties
Motor vehicle fees
Approved issuer levy and cheque duty
Energy resources levies

21,655

14,453 Total indirect taxation

15,267

15,451

(184)

(1.2)

23,259

60,879

39,051 Total taxation revenue

41,962

41,880

82

0.2

65,041

2,237
255
187
371
118
363

2,130
249
188
395
119
300

107
6
(1)
(24)
(1)
63

5.0
2.4
(0.5)
(6.1)
(0.8)
21.0

3,195
350
282
582
173
521

3,531

3,381

150

4.4

5,103

45,493

45,261

232

0.5

70,144

Other Sovereign Revenue (accrual)
ACC levies
Fire Service levies
EQC levies
Child support
Court fines
Other miscellaneous items

3,600
339
274
545
179
513

2,439
238
182
411
116
284

5,450

3,670 Total other sovereign revenue

66,329

42,721 Total sovereign revenue

1.  Includes excise on domestic production and excise‐equivalent duties on imports.

20

9,840
(198)
467
(3)

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

 

 NOTES TO THE FINANCIAL STATEMENTS 
 

 Year
to 30 Jun
2014
Actual
$m

8 months
to 28 Feb
2014
Actual
$m

Current Year Actual vs Forecast
Actual Forecast
$m
$m

%

Annual
Forecast
$m

0.3
0.5
4.8
(1.1)

24,886
5,900
(2,293)
503

139

0.7

28,996

Variance
$m

NOTE 2 (continued):  Sovereign Receipts (Cash)
Taxation Receipts (cash)
Individuals
Source deductions
Other persons
Refunds
Fringe benefit tax

23,621
5,466
(2,276)
482

15,702
2,981
(1,437)
343

27,293

17,589 Total individuals

9,374
(563)
405
‐  

5,582
(361)
244
‐  

9,216

Corporate Tax
Gross companies tax
Refunds
Non‐resident withholding tax
Foreign‐source dividend w/holding payments

16,646
3,216
(1,396)
357

16,589
3,201
(1,467)
361

18,823

18,684

57
15
71
(4)

5,746
(358)
336
(6)

6,030
(388)
306
(5)

(284)
30
30
(1)

(4.7)
7.7
9.8
(20.0)

10,083
(639)
491
(3)

5,465 Total corporate tax

5,718

5,943

(225)

(3.8)

9,932

1,629
449

Other Direct Income Tax
1,034 Resident w/holding tax on interest income
257 Resident w/holding tax on dividend income

1,144
320

1,156
306

(12)
14

(1.0)
4.6

1,811
494

2,078

1,291 Total other direct income tax

1,464

1,462

2

0.1

2,305

38,587

24,345 Total income tax

26,005

26,089

(84)

(0.3)

41,233

26,596
(10,948)

Goods and Services Tax
17,557 Gross goods and services tax
(7,124) Refunds

17,598
(7,358)

17,687
(7,425)

(89)
67

(0.5)
0.9

27,934
(10,928)

15,648

10,433 Total goods and services tax

10,240

10,262

(22)

(0.2)

17,006

854
1,388
1,772
146
131
32
22

838
1,346
1,741
142
131
39
21

16
42
31
4
‐  
(7)
1

1.9
3.1
1.8
2.8
‐  
(17.9)
4.8

1,246
1,899
2,248
213
199
52
33

 
1,187
1,780
2,179
208
178
51
35
5,618

767
1,278
1,568
140
140
37
20

Other Indirect Taxation
Road user charges
Excise duties
Customs duty
Gaming duties
Motor vehicle fees
Approved issuer levy and cheque duty
Energy resources levies

4,345

4,258

87

2.0

5,890

21,266

14,383 Total indirect taxation

3,950 Total other indirect taxation

14,585

14,520

65

0.4

22,896

59,853

38,728 Total tax receipts collected

40,590

40,609

(19)

‐  

64,129

2,341
255
167
137
100
481

2,275
249
202
144
92
285

66
6
(35)
(7)
8
196

2.9
2.4
(17.3)
(4.9)
8.7
68.8

3,219
350
284
217
137
466

3,481

3,247

234

7.2

4,673

44,071

43,856

215

0.5

68,802

Other Sovereign Receipts (cash)
ACC levies
Fire Service levies
EQC levies
Child support
Court fines
Other miscellaneous items

3,579
340
273
219
149
414

2,503
239
190
148
98
377

4,974

3,555 Total other sovereign receipts

64,827

42,283 Total sovereign receipts

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

 

21 

 NOTES TO THE FINANCIAL STATEMENTS 
 

Year
to 30 Jun
2014
Actual
$m

8 months
to 28 Feb
2014
Actual
$m

Current Year Actual vs Forecast
Actual Forecast
$m
$m

Variance
$m

%

Annual
Forecast
$m

NOTE 3:  Interest Revenue and Dividends
2,516
659

By type
1,631 Interest revenue
384 Dividends

1,824
389

1,948
394

(124)
(5)

(6.4)
(1.3)

3,075
634

3,175

2,015 Total interest revenue and dividends

2,213

2,342

(129)

(5.5)

3,709

2,295
1,249
879
(1,248)

1,487
725
573
(770)

1,536
917
703
(943)

1,557
875
686
(776)

(21)
42
17
(167)

(1.3)
4.8
2.5
(21.5)

2,372
1,465
1,072
(1,200)

3,175

2,015 Total interest revenue and dividends

2,213

2,342

(129)

(5.5)

3,709

7,632
1,152
1,006
799
1,164
352
755
465
251
304
878

7,637
1,152
1,006
797
1,205
333
758
467
252
306
905

5
‐  
‐  
(2)
41
(19)
3
2
1
2
27

0.1
‐  
‐  
(0.3)
3.4
(5.7)
0.4
0.4
0.4
0.7
3.0

11,577
1,679
1,513
1,187
1,890
557
1,132
718
379
523
1,350

14,758

14,818

60

0.4

22,505

By source 
Core Crown
Crown entities 
State‐owned Enterprises
Inter‐segment eliminations

NOTE 4:  Transfer Payments and Subsidies
10,913
1,691
1,422
1,222
1,965
567
1,146
660
379
539
1,519
22,023

7,159
1,142
921
809
1,264
346
771
432
253
318
1,075

New Zealand superannuation
Jobseeker support and emergency benefit
Supported living payment
Sole parent support
Family tax credit
Other working for families tax credits
Accommodation assistance 
Income related rents
Disability assistance
Student allowances
Other social assistance benefits

14,490 Total social assistance grants

804

Subsidies
563 KiwiSaver

555

563

8

1.4

854

533

Other transfer payments
258 Official development assistance

242

288

46

16.0

531

15,555

15,669

114

0.7

23,890

9
12
(26)
4

0.2
0.2
(1.4)
57.1

6,507
11,688
2,874
(11)

(1)

‐  

23,360

15,311 Total transfer payments and subsidies
NOTE 5:  Personnel Expenses

6,232
11,315
2,956
(19)
20,484

4,087
7,440
1,946
(9)

Core Crown
Crown entities 
State‐owned Enterprises
Inter‐segment eliminations

13,464 Total personnel expenses

4,271
7,748
1,923
(11)
13,931

4,280
7,760
1,897
(7)
13,930

21,058

NOTE 6:  Depreciation and Amortisation

22

1,476
1,661
1,735
‐  

914
1,065
888
‐  

Core Crown
Crown entities 
State‐owned Enterprises
Inter‐segment eliminations

4,872

2,867 Total depreciation and amortisation

975
1,109
1,069
‐  

984
1,114
963
‐  

9
5
(106)
‐  

0.9
0.4
(11.0)
‐  

1,497
1,698
1,649
‐  

3,153

3,061

(92)

(3.0)

4,844

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

 

 NOTES TO THE FINANCIAL STATEMENTS 
 

Year
to 30 Jun
2014
Actual
$m

8 months
to 28 Feb
2014
Actual
$m

Current Year Actual vs Forecast
Actual Forecast
$m
$m

Variance
$m

%

Annual
Forecast
$m

NOTE 7:  Other Operating Expenses
By source
Core Crown
Crown entities 
State‐owned Enterprises
Inter‐segment eliminations

36,777
17,297
9,042
(27,563)

23,170
11,198
6,086
(17,788)

35,553

22,666 Total operating expenses

23,865
11,549
6,203
(18,462)

24,486
11,742
6,085
(18,432)

621
193
(118)
30

2.5
1.6
(1.9)
0.2

38,135
18,095
9,237
(28,258)

23,155

23,881

726

3.0

37,209

NOTE 8:  Finance Costs
4,360
40

By type
2,915 Interest on financial liabilities
25 Interest unwind on provisions

2,984
17

3,044
38

60
21

2.0
55.3

4,615
50

4,400

2,940 Total finance costs

3,001

3,082

81

2.6

4,665

3,620
219
1,161
(600)

2,376
146
749
(331)

2,563
139
847
(548)

2,549
148
851
(466)

(14)
9
4
82

(0.5)
6.1
0.5
17.6

3,816
224
1,348
(723)

4,400

2,940 Total finance costs

3,001

3,082

81

2.6

4,665

2,273
(180)
142
13

2,166
(59)
34
9

(107)
121
(108)
(4)

(4.9)
205.1
(317.6)
(44.4)

2,248

2,150

(98)

(4.6)

3,479
2,651
(159)
(1,142)

2,325
942
(10)
(168)

1,154
1,709
(149)
(974)

49.6
181.4
‐  
‐  

3,140
994
3
(199)

4,829

3,089

1,740

56.3

3,938

By source
Core Crown
Crown entities 
State‐owned Enterprises
Inter‐segment eliminations

NOTE 9:  Insurance Expenses
By entity
ACC
EQC
Southern Response 
Other insurance expenses

3,484
(111)
87
41

2,119
(400)
28
5

3,501

1,752 Total insurance expenses

3,675
(21)
12
12
3,678

NOTE 10:  Net Gains and Losses on Financial   
    Instruments
By source 
Core Crown
Crown entities 
State‐owned Enterprises
Inter‐segment eliminations

4,045
702
182
(88)

2,916
414
92
86

4,841

3,508 Net gains/(losses) on financial instruments

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

 

23 

 NOTES TO THE FINANCIAL STATEMENTS 
 

Year
to 30 Jun
2014
Actual
$m

8 months
to 28 Feb
2014
Actual
$m

Current Year Actual vs Forecast
Actual Forecast
$m
$m

Variance
$m

%

Annual
Forecast
$m

NOTE 11:  Net Gains and Losses on Non‐Financial 
    Instruments
577
479
(516)

By type
1
539 Actuarial gains/(losses) on GSF liability 
2
1,114 Actuarial gains/(losses) on ACC liability 
(200) Other
Net gains/(losses) on non‐financial

540

1,453      instruments

220
477
(156)
(1)

346
1,112
(5)
‐  

540

1,453      instruments

By source 
Core Crown
Crown entities 
State‐owned Enterprises
Inter‐segment eliminations
Net gains/(losses) on non‐financial

(2,049)

(405)

(1,644)

(405.9)

(405)

(3,810)
(178)

(1,316)
(22)

(2,494)
(156)

(189.5)
‐  

(1,316)
(61)

(6,037)

(1,743)

(4,294)

(246.4)

(1,782)

(2,269)
(3,808)
40
‐  

(435)
(1,319)
10
1

(1,834)
(2,489)
30
(1)

(421.6)
(188.7)
300.0
(100.0)

(445)
(1,333)
(5)
1

(6,037)

(1,743)

(4,294)

(246.4)

(1,782)

33
370
312
(1,667)

361
681
423
(524)

(328)
(311)
(111)
(1,143)

(90.9)
(45.7)
(26.2)
(218.1)

1,212
715
513
(540)

941

(1,893)

(201.2)

1,900

NOTE 12: Operating Balance (excluding
    Minority Interests)
By source 
Core Crown
Crown entities 
State‐owned Enterprises
Inter‐segment eliminations

203
2,874
428
(697)

628
3,044
554
(505)

2,808

3,721 Total operating balance

(952)

1.  The most recent GSF valuation was as at 31 January 2015.
2.  The most recent ACC valuation was as at 31 December 2014, updated monthly for changes to discount rates.

24

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

 

 NOTES TO THE FINANCIAL STATEMENTS 
 

As at
30 June
2014
$m

As at
28 Feb
2014
$m

Current Year Actual vs Forecast
Actual
$m

Forecast
$m

Variance
$m

%

Annual
Forecast
$m

NOTE 13:  Financial Assets and Sovereign Receivables
11,888
8,112
9,368
8,716
14,630
3,844
2,142
1,410
20,596
4,164
38,307
123,177

13,661
7,687
8,134
8,614
14,150
3,234
2,234
928
19,853
3,791
37,656

Cash and cash equivalents 
Tax receivables
Trade and other receivables
Student loans
Kiwibank mortgages 
Long‐term deposits
IMF financial assets
Other advances1
Share investments
Derivatives in gain
Other marketable securities 

119,942 Total financial assets and sovereign receivables

12,527
8,609
7,355
9,030
15,225
3,587
2,262
2,068
24,048
4,164
39,606

10,670
8,846
7,388
8,979
15,616
3,444
2,582
1,357
22,091
2,827
39,985

1,857
(237)
(33)
51
(391)
143
(320)
711
1,957
1,337
(379)

17.4
(2.7)
(0.4)
0.6
(2.5)
4.2
(12.4)
52.4
8.9
47.3
(0.9)

11,166
8,917
8,685
8,990
16,037
3,336
2,791
1,401
22,718
2,813
36,519

128,481

123,785

4,696

3.8

123,373

20,842
20,837
29,662
23,660
(10,036)

19,672
19,341
28,475
23,610
(10,754)

1,170
1,496
1,187
50
718

5.9
7.7
4.2
0.2
6.7

13,411
18,408
29,167
24,346
(7,439)

84,965

80,344

4,621

5.8

77,893

33,152
2,723
9,131
(2,510)

31,520
2,266
8,830
(2,519)

1,632
457
301
9

5.2
20.2
3.4
0.4

32,616
1,431
10,042
(2,315)

2,399

6.0

41,774

(140)

(0.6)

23,318

Financial Assets by Entity
Debt Management Office
Reserve Bank of New Zealand
NZ Superannuation Fund
Other core Crown
Intra‐segment eliminations

18,359
18,849
26,990
24,358
(8,473)

19,340
18,346
25,510
23,511
(8,283)

80,083

78,424 Total core Crown segment

30,897
3,605
9,806
(2,464)

28,969
4,087
8,950
(1,812)

41,844

40,194 Total Crown entities segment

42,496

40,097

21,151

20,707 Total State‐owned Enterprises segment

22,611

22,751

(19,901)

(19,383) Inter‐segment eliminations

(21,591)

(19,407)

(2,184)

(11.3)

(19,612)

123,177

119,942 Total financial assets and sovereign receivables

128,481

123,785

4,696

3.8

123,373

ACC portfolio
EQC portfolio
Other Crown entities
Intra‐segment eliminations

1.  Other advances include finance lease receivables.

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

25 

 NOTES TO THE FINANCIAL STATEMENTS 
 

As at
30 June
2014
$m

As at
28 Feb
2014
$m

Current Year Actual vs Forecast
Actual
$m

Forecast
$m

Variance
$m

%

Annual
Forecast
$m

NOTE 14:  Property, Plant and Equipment

37,138
27,396
19,709
13,941
3,992
2,891
2,975
2,287
936
5,041
116,306

34,376
25,660
18,627
13,512
4,010
2,790
2,622
2,416
1,110
5,428

Net Carrying Value1
By class of asset:
Land
Buildings
State highways
Electricity generation assets
Electricity distribution network (cost)
Specialist military equipment
Specified cultural and heritage assets
Aircraft (excl military)
Rail network
Other plant and equipment (cost)

110,551 Total net carrying value
By source
Core Crown
Crown entities
State‐owned Enterprises
Inter‐segment eliminations

       30,963
       56,802
       28,541
              ‐

         29,363
         52,369
         28,819
                ‐

     116,306

       110,551 Total net carrying value

11,361
8,853
5,432
3,256
3,167
1,312
         3,757

            9,579
8,003
            5,359
3,257
            2,866
            1,320
            3,992

       37,138

         34,376 Total land

Land breakdown by usage
Housing stock
State highway corridor land
Conservation estate
Rail network corridor land
Schools
Commercial (SOE) excluding rail
Other

Schedule of Movements
Cost or Valuation
Opening balance
Additions (refer below)
Disposals
Net revaluations
Other

     122,796
         6,672
        (1,432)
         3,038
           (732)

       122,796
            3,969
              (540)
              (419)
                (98)

     130,342

       125,708 Total cost or valuation

       12,963
           (813)
        (2,133)
         4,151
           (132)
       14,036

         12,963
              (219)
                (73)
            2,458
                 28
         15,157

     116,306

       110,551 Total property, plant and equipment

         2,363
         1,108
             529
             443
             386
         1,843

            1,386
               798
               306
               313
               178
               988

         6,672

            3,969 Total additions

Accumulated Depreciation and Impairment
Opening balance
Eliminated on disposal
Eliminated on revaluation
Depreciation expense and impairment losses
Other
Total accumulated depreciation and impairment

Additions ‐ by functional classification
Transport and communications
Economic and industrial services
Education
Health
Defence
Other

37,192
27,631
20,259
13,691
4,011
3,002
2,982
2,709
1,061
5,114

37,339
27,832
20,326
13,881
4,068
3,110
2,975
2,531
1,036
5,335

(147)
(201)
(67)
(190)
(57)
(108)
7
178
25
(221)

(0.4)
(0.7)
(0.3)
(1.4)
(1.4)
(3.5)
0.2
7.0
2.4
(4.1)

37,379
28,528
21,102
13,778
4,130
3,146
3,073
2,780
1,089
5,041

    117,652

    118,433

(781)

(0.7)

120,046

     31,741
     57,778
     28,914
           ‐

(383)
(237)
(161)
‐  

(1.2)
(0.4)
(0.6)
‐  

     32,242
     58,945
     28,859
           ‐

    117,652

    118,433

(781)

(0.7)     120,046

     11,348
       8,853
       5,423
       3,255
       3,136
       1,340
       3,837

     11,337
       8,853
       5,418
       3,249
       3,161
       1,321
       4,000

11
‐  
5
6
(25)
19
(163)

0.1
‐  
0.1
0.2
(0.8)
1.4
(4.1)

      37,192

      37,339

(147)

(0.4)       37,379

  130,342
       5,205
         (326)
           (20)
           (17)

‐  
(621)
(176)
(33)
(54)

    134,300

    135,184

(884)

(0.7)     138,302

     14,036
         (175)
           (31)
       2,676
          142
      16,648

     14,036
           (89)
           ‐
       2,620
          184
      16,751

‐  
(86)
(31)
56
(42)
(103)

‐  
14,036
(96.6)
(62)
‐  
  ‐  
2.1
4,192
(22.8)
90
(0.6)       18,256

    117,652

    118,433

(781)

(0.7)     120,046

1,770
392
574
344
356
1,148

1,738
481
576
522
466
1,422

32
(89)
(2)
(178)
(110)
(274)

1.8
(18.5)
(0.3)
(34.1)
(23.6)
(19.3)

        4,584

        5,205

(621)

(11.9)         8,663

31,358
57,541
28,753
‐  

130,342
4,584
(502)
(53)
(71)

1.  Using a revaluation methodology unless otherwise stated.

26

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

‐  
(11.9)
(54.0)
(165.0)
(317.6)

     11,371
8,853
5,439
3,231
       3,175
       1,327
       3,983

130,342
8,663
(656)
(2)
(45)

3,325
759
913
762
626
2,278

 

 NOTES TO THE FINANCIAL STATEMENTS 
 

As at
30 June
2014
$m

As at
28 Feb
2014
$m

Current Year Actual vs Forecast
Actual
$m

Forecast
$m

Variance
$m

%

Annual
Forecast
$m

NOTE 15:  Intangible Assets and Goodwill
628
2,292

647 Goodwill
2,214 Other intangible assets

602
2,364

613
2,357

(11)
7

(1.8)
0.3

613
2,453

2,920

2,861 Total intangible assets and goodwill

2,966

2,970

(4)

(0.1)

3,066

1,184
542
1,194
‐  

1,133
558
1,170
‐  

1,210
554
1,202
‐  

1,226
556
1,188
‐  

(16)
(2)
14
‐  

(1.3)
(0.4)
1.2
‐  

1,281
612
1,173
‐  

2,920

2,861 Total intangible assets and goodwill

2,966

2,970

(4)

(0.1)

3,066

By source
Core Crown
Crown entities
State‐owned Enterprises
Inter‐segment eliminations

NOTE 16:  NZ Superannuation Fund
767
(1,074)

446
(306)

484
(371)

(38)
(65)

(7.9)
(17.5)

730
(576)

(164)
3,735

461 Revenue
(775) Less: current tax expense
1
(91) Less: other expenses
2,704 Add gains/(losses)

(83)
2,656

(97)
1,673

(14)
983

(14.4)
58.8

(151)
2,338

3,264

2,299 Operating balance

2,713

1,689

1,024

60.6

2,341

22,549
3,264
(4)

22,549 Opening net worth
2,299 Operating balance
1 Other movements in reserves

25,809
2,713
15

25,809
1,689
23

‐  
1,024
(8)

‐  
60.6
(34.8)

25,809
2,341
29

25,809

24,849 Closing net worth

28,537

27,521

1,016

3.7

28,179

26,990
(2,323)
1,142

comprising:
25,510 Financial assets
(1,798) Financial liabilities
1,137 Net other assets

29,662
(2,258)
1,133

28,475
(2,153)
1,199

1,187
(105)
(66)

4.2
(4.9)
(5.5)

29,167
(2,233)
1,245

25,809

24,849 Closing net worth

28,537

27,521

1,016

3.7

28,179

7,372
3,047

7,425
3,454

53
407

0.7
11.8

7,768
4,551

10,419

10,879

460

4.2

12,319

1.  NZS Fund other expenses include deferred tax expense/(credits).

NOTE 17:  Payables
7,626
3,668

7,404 Accounts payable
3,099 Taxes repayable

11,294

10,503 Total payables

7,800
5,382
4,832
(6,720)

6,617
5,350
5,101
(6,565)

By source
Core Crown
Crown entities
State‐owned Enterprises
Inter‐segment eliminations

7,160
4,991
4,788
(6,520)

7,230
5,258
4,850
(6,459)

70
267
62
61

1.0
5.1
1.3
0.9

8,370
5,449
5,067
(6,567)

11,294

10,503 Total intangible assets and goodwill

10,419

10,879

460

4.2

12,319

32,867
3,487
1,229
55
(322)

30,314
3,123
1,064
63
‐  

(2,553)
(364)
(165)
8
322

(8.4)
(11.7)
(15.5)
12.7
‐  

32,472
2,814
817
70
‐  

37,316

34,564

(2,752)

(8.0)

36,173

NOTE 18:  Insurance Liabilities
29,948
4,747
1,434
63
(367)

27,321
5,085
1,526
58
(406)

ACC liability
EQC property damage liability
Southern Response
Other insurance liabilities
Inter‐segment eliminations

35,825

33,584 Total insurance liabilities

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

 

27 

 NOTES TO THE FINANCIAL STATEMENTS 
 

As at
30 June
2014
$m

As at
28 Feb
2014
$m

Current Year Actual vs Forecast
Actual
$m

Forecast
$m

Variance
$m

%

Annual
Forecast
$m

NOTE 19:  Provisions
3,444
521
910
394

2,955
365
945
455

3,061
761
876
287

2,985
581
874
272

(76)
(180)
(2)
(15)

(2.5)
(31.0)
(0.2)
(5.5)

3,200
567
872
204

92
1,594

Provision for employee entitlements
Provision for ETS Credits1
Provision for National Provident Fund guarantee
Provision for Infrastructure costs
Provision for weathertight services
120      financial assistance package
1,421 Other provisions 

94
1,412

64
1,399

(30)
(13)

(46.9)
(0.9)

67
1,525

6,955

6,261 Total provisions

6,491

6,175

(316)

(5.1)

6,435

4,208
2,076
1,177
(506)

3,761
1,940
1,085
(525)

4,129
1,984
1,080
(702)

3,880
2,004
955
(664)

(249)
20
(125)
38

(6.4)
1.0
(13.1)
5.7

4,045
1,996
996
(602)

6,955

6,261 Total provisions

6,491

6,175

(316)

(5.1)

6,435

By source
Core Crown
Crown entities
State‐owned Enterprises
Inter‐segment eliminations

1.  Further information on the ETS, and the Kyoto net asset (included as an intangible asset in these financial statements) can be found on the
Ministry for the Environment's climate change website www.climatechange.govt.nz

NOTE 20: Changes in Net Worth
13,300
62,225
5,211
43

14,339
56,677
4,468
(93)

80,779
10,862
2,808
(577)
207
13,300

57,068
5,386
(229)
62,225

28

Taxpayers' funds
Property, plant and equipment revaluation reserve
Net worth attributable to minority interests
Other reserves

12,431
62,167
5,234
(28)

14,303
62,196
5,261
(45)

(1,872)
(29)
(27)
17

(13.1)
‐  
(0.5)
37.8

15,271
62,153
5,184
(48)

75,391 Total Net Worth

79,804

81,715

(1,911)

(2.3)

82,560

10,862 Opening taxpayers funds
3,721 Operating balance excluding minority interests
Gain/(loss) on Government share offers in 
(361)     state‐owned enterprises
117 Transfers from/(to) other reserves

13,300
(952)

13,300
941

‐  
(1,893)

‐  
(201.2)

13,300
1,900

‐  
83

‐  
62

‐  
21

‐  
33.9

‐  
71

14,339 Closing taxpayers funds

12,431

14,303

(1,872)

(13.1)

15,271

62,225
(13)
(45)

62,225
(9)
(20)

‐  
(4)
(25)

‐  
(44.4)
(125.0)

62,225
(21)
(51)

62,167

62,196

(29)

‐  

Opening property, plant and equipment
57,068      revaluation reserve
(347) Net revaluations
(44) Transfers from/(to) other reserves
Closing property, plant and equipment 
56,677
revaluation reserve

62,153

1,940
3,271

Opening net worth attributable to
1,940     minority interests
2,528 Net movements

5,211
23

5,211
50

‐  
(27)

‐  
(54.0)

5,211
(27)

5,211

4,468 Closing net worth attributable to minority interests

5,234

5,261

(27)

(0.5)

5,184

141
(98)

141 Opening other reserves
(234) Net movements

43
(71)

43
(88)

‐  
17

‐  
19.3

43
(91)

43

(93) Closing other reserves

(28)

(45)

17

37.8

(48)

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

 

 NOTES TO THE FINANCIAL STATEMENTS 
 

Year
to 30 Jun
2014
$m

8 months
to 28 Feb
2014
$m

Current Year Actual vs Forecast

%

Annual
Forecast
$m

0.2
40.8
‐  
(9.6)
0.4
1.2
0.7
‐  
(100.0)

65,447
788
1,678
2,232
(24,015)
(43,011)
(3,906)
(123)
950

Actual
$m

Forecast
$m

Variance
$m

41,545
704
1,149
1,550
(15,733)
(28,290)
(2,018)
‐  
‐  

41,469
500
1,149
1,715
(15,799)
(28,643)
(2,032)
‐  
428

76
204
‐  
(165)
66
353
14
‐  
(428)

(1,093)

(1,213)

120

(1,278)
(395)
(917)
‐  
‐  
‐  

(1,704)
(513)
(939)
‐  
‐  
259

426
119
22
‐  
‐  
(259)

25.0
23.1
2.3
‐  
‐  
(100.0)

(2,588)
(890)
(1,661)
628
(113)
575

(2,590)

(2,897)

308

10.6

(4,049)

(3,683)

(4,110)

428

10.4

(4,009)

7,716
(2,196)
(935)

Debt Programme Cash Flows
Market:
6,076      Issue of government bonds
(148)      Repayment of government bonds
1
(755)      Net issue/(repayment) of short‐term borrowing

6,324
(1,523)
1,210

6,479
(1,523)
710

(155)
‐  
500

(2.4)
‐  
70.4

8,137
(8,684)
1,180

4,585

5,173 Total market debt cash flows

6,011

5,666

345

6.1

633

‐  
61.5
‐  

‐  
(760)
(480)

NOTE 21:  Core Crown Residual Cash
61,321
747
1,627
2,397
(23,447)
(41,989)
(3,642)
‐  
‐  

39,533
603
1,085
1,495
(15,800)
(28,271)
(1,854)
‐  
‐  

Core Crown Cash Flows from Operations
Tax receipts
Other sovereign receipts
Interest, profits and dividends
Sale of goods & services and other receipts
Transfer payments and subsidies
Personnel and operating costs
Interest payments
Forecast for future new operating spending
Top‐down expense adjustment

(2,986)

(3,209) Net core Crown operating cash flows

(1,867)
(716)
(865)
2,325
‐  
‐  

(1,087)
(505)
(748)
1,598
‐  
‐  

(1,123)
(4,109)

Net purchase of physical assets
Net increase in advances
Net purchase of investments
Net proceeds from partial share sales 
Forecast for future new capital spending
Top‐down capital adjustment

(742) Net Core Crown capital cash flows
(3,951) Residual cash deficit

9.9

40

The residual cash deficit is funded as follows:

‐  
‐  
‐  

Non market:
‐        Issue of government bonds
‐        Repayment of government bonds
‐        Net issue/(repayment) of short‐term borrowing

‐  
(193)
(280)

‐  
(501)
(280)

‐  
308
‐  

‐  

‐   Total non‐market debt cash flows

(473)

(781)

308

4,585

5,173 Total debt programme cash flows

39.4

(1,240)

5,538

4,885

653

13.4

(607)

879

308

571

185.4

852

Other Borrowing Cash Flows
(674)
1,083
409

(1,510)
274
351
(885)
4,109

Net (repayment)/issue of other New Zealand
(925)      dollar borrowing
Net (repayment)/issue of foreign currency
189      borrowing
(736) Total other borrowing cash flows
Investing Cash Flows
Other net sale/(purchase) of marketable
(1,591)      securities and deposits
357 Issues of circulating currency
748 Decrease/(increase) in cash
(486) Total investing cash flows
3,951 Residual cash deficit funding

(1,189)

(1,114)

(310)

(806)

(1,269)
451
(727)

(737)
143
625

(533)
308
(1,352)

(72.3)
215.4
(216.3)

4,731
130
426

(1,545)

31

(1,577)

‐  

5,287

4,110

(428)

(10.4)

4,009

3,683

(75)
496

(6.7)
178.7

1.  Short‐term borrowing consists of Treasury Bills and Euro‐Commercial Paper (ECP).

(1,523)
(671)

 

 

Financial Statements of the Government of New Zealand – eight months ended 28 February 2015

29