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ANNUAL REPORT 2014 - 2015

PARLIAMENTARY SERVICE

A.13

PARLIAMENTARY SERVICE ANNUAL REPORT 2014-2015

ISSN 2324-2868 (Print) ISSN 2324-2876 (Online)

Copyright

Except for images with existing copyright and the Parliamentary Service logo, this copyright work is licensed under the Creative Commons Attribution-Non-commercial-Share Alike 3.0 New Zealand licence.

You are free to copy, distribute and adapt the work for non-commercial purposes as long as you attribute the work to the Parliamentary Service and abide by the other licence terms.

Note: the use of any Parliamentary logo [by any person or organisation outside of the New Zealand Parliament] is contrary to law.

To view a copy of this licence visit http://creativecommons.org/licences/by-nc-sa/3.0/nz

Presented to the House of Representatives pursuant to section 44(1) of the Public Finance Act 1989

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Contents

Performance highlights 4

Foreword from the Speaker of the House of Representatives 7

General Manager’s overview 8

Part 1 – Nature and scope of functions 12

Part 2 – Report on operating intentions 16

Part 3 – Measuring our success and reporting against appropriations 26

Part 4 – People and Culture 40

Statement of responsibility 45

Independent Auditor’s report 46

Financial information 50

Statements of expenses and capital expenditure 82 & 104

Schedule of expenditure on travel entitlements of former members and their spouse or partner 109


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Performance highlights

11,183VISITORS TO THE PUBLIC GALLERY

TRIP ADVISOR AWARD - CERTIFICATE OF EXCELLENCE RECOGNISING OUR CONSISTENTLY HIGH LEVEL OF FEEDBACK FROM MEMBERS OF THE PUBLIC

87,000VISITORS TO PARLIAMENT

14,654

SCHOOL STUDENTS VISITED PARLIAMENT

98% OF VISITORS TO PARLIAMENT RATED THEIR EXPERIENCE AS GOOD OR EXCELLENT

ANSWERING

LIBRARY RESEARCH REQUESTS

10,500

HITS ON WWW.PARLIAMENT.NZ

1,306,931

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81% OVERALL SATISFACTION WITH SERVICES

OUR ACHIEVEMENTS

During 2014/15 Parliamentary Service also:

• Successfully enabled the transition from the 50th to 51st Parliaments following Election 2014 including establishing nearly 40 new out-of-Parliament offices for members.

• Successfully regenerated the area around the Cenotaph in Wellington (in conjunction with Wellington City Council) by way of steps linking it to the parliamentary forecourt, and providing seating around the Cenotaph.

• Commenced the implementation of the Government’s 29 Protective Security Requirements with Parliamentary Service leading work on the parliamentary precinct.

• Developed a new learning and development system and a remuneration framework for member support staff.

• Made Parliament more accessible for the less abled by installing ‘talking’ lifts in the Executive Wing, and improving the visibility of glass doors and security bollards.

• Established a new security team, taking an intelligence-led approach to security and providing better support to out-of-Parliament offices.

• Rolled out a new Microsoft Lync-based telephony system enabling more flexible means of communication for users. Over 1,600 telephone extensions migrated to the new telephony platform.

• Upgraded 61 out-of-Parliament offices with new network connectivity, known as ‘Office in a Box’.

• Continued the development of the Parliament sector with the Office of the Clerk, focusing on a plan to achieve common outcomes and implementation of the Parliament Communications Strategy.

101LIBRARY RESEARCH

PAPERS OF OUT-OF-PARLIAMENT OFFICES HAVE INCREASED SECURITY ENHANCEMENTS

72%


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Foreword from the Speaker of the House of Representatives

The Parliamentary Service (the Service) supports the institution of Parliament by providing administrative and support services to the House of Representatives, members of Parliament, and the agencies working within the precinct of Parliament.

This last year has been very busy for the Service with some great work undertaken - including the transition to a new Parliament - and there are exciting times ahead. During the course of the year, the Service has commenced a clear multi-year plan of where it wants to be by 2020 – the year of attaining its vision of “being recognised for excellence and innovation.” I have noted a capability shift in the Service’s people during 2014/15 to support and deliver on this work plan. There is a significant work programme in place to support elected members and the institution of Parliament; this will assist members to

effectively represent the needs of New Zealanders.

The key achievement for the Service in the past year was the planning of and successful transition to the 51st Parliament, following the general election held in September 2014. This involved implementing an extensively updated operating framework – comprising new Speaker’s Directions and Determinations from the Remuneration Authority - to support members in carrying out their work as elected representatives.

During 2014/15, the Service has further developed an integrated Parliament sector approach with the Office of the Clerk of the House of Representatives (Office of the Clerk). The work under way in the sector complements and supports the achievement of common outcomes for Parliament.

I have continued to appreciate the support that the Service has provided my office over the last year.

The Rt Hon David Carter, MP Speaker of the House of Representatives and Responsible Minister for Vote Parliamentary Service

30 September 2015

FOREWORD FROM THE SPEAKER OF THE HOUSE OF REPRESENTATIVES


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General Manager’s overview

I am pleased to present the 2014/15 annual report of the Parliamentary Service. This has been a particularly rewarding year and a period of re-building for the Service with many highlights to end a very positive year. Staff can be very proud of what we have achieved together.

This past year saw the Service commence its journey towards achieving its 2020 vision of “being recognised for excellence and innovation.” Our focus has been informed by the Performance Improvement Framework (PIF) review and our efforts on the performance challenges identified by that review.1 While we have not achieved all of our performance measures, we acknowledge this was a busy year, with a key focus on delivering the transition between the 50th and 51st Parliaments.

Throughout the year, the Parliament sector partnership approach with the Office of the Clerk has continued to evolve. Both organisations have worked closely together to facilitate a smooth transition between Parliaments. There continues to be a strong focus on promoting a more accessible Parliament for New Zealanders and ensuring that elected representatives are provided with the support required to carry out their duties both here in Wellington and around the country.

Another year has ended and again we have many notable achievements and highlights. They demonstrate how we focussed on improving our support to elected members, developing our sector partnership and supporting New Zealand’s democratic system. These include:

Supporting the 51st Parliament

The transition to the 51st Parliament was an extensive time of change for the Service.

A significant achievement was the reorganisation of appropriations brought about by changes to the Speaker’s Directions. These were implemented and training provided to members.

The introduction of the Members of Parliament (Remuneration and Services) Act 2013 and additional responsibilities of the Remuneration Authority in determining various accommodation and travel entitlements, added a further complexity to the rules.

1 PIF review published in July 2014 – available at http://www.parliament.nz/en-nz/parl-support/agencies/ps/corp-docs/50PSGMOPSPIF141/parliamentary-service-pif-report-2014.

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GENERAL MANAGER’S OVERVIEW

All changes have reflected the recommendations made by the fifth triennial Appropriations Review Committee (ARC) and provide elected members with greater flexibility in how they organise their offices and support staff. It creates the ability to transfer unspent funds across years and ring fences funding to align with the parliamentary term.

Response to the PIF review

The Service’s PIF review has been a valuable resource for steering change in the organisation. We are focussed and clear on where we want to be. The Service is on a journey, and we are listening to what the PIF reviewers identified, to our own evaluation – our metrics – and to our customers, principally the elected representatives. A key challenge over this and coming years is to realign our organisational structure to an optimal operating model. This will require some change and working with staff is fundamental to achieving this.

In response to the review we developed six foundation themes (described in more detail in the Strategic Overview section in Part 1 of this report). These are the building blocks that we strive to achieve year on year towards achieving our 2020 vision. This report notes our performance in year one of our journey. Aside from the election, our focus has been on understanding and commencing the standardisation of our service provision, and providing better support to out-of-Parliament offices.

Growing and developing our people

Growing and developing our people is the highest priority for the coming year as all other pieces of work flow from the right level of capability and behaviour among staff. This is about achieving a more constructive organisational culture.

During the past twelve months the Service has embarked on a significant people and change programme which impacts on the Service’s core staff workforce. This has resulted in new remuneration, performance and behavioural frameworks that have been agreed for this workforce. This was accomplished by building a stronger partnership with the Public Service Association and driving a highly consultative approach with staff to deliver these new frameworks.

These three people projects set the foundations of a robust strategy to address concerns of staff highlighted by the 2013 staff culture survey. An important focus for the Service over the next four years is to ensure our single most important asset – our people – feel valued, understand the behaviours required of them, provide the best service to our elected representatives and others we provide services to, and are constantly recognised for doing so.

The Service also introduced some significant changes for member support staff, who are managed by members of Parliament but remain employees of the Service. These changes have included the implementation of new job families and a remuneration structure for the 51st Parliament, and the launch of a new performance framework and learning and development system specific to member support staff.

I would like to thank all staff at the Service for their continuing commitment to the work of Parliament and for making the Parliamentary Service a great place to work. I would like to acknowledge the support that the Speaker has given the Service on the journey towards achieving our vision, and for the guidance and support that the Parliament Sector Advisory Board has provided.


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At the end of the year, the Clerk of the House of Representatives, Mary Harris, retired after 28 years of service of which nearly eight years were as Clerk of the House. I would like to formally acknowledge the contribution made by her; it was a privilege to work alongside her in supporting the functions of Parliament. I now look forward to continuing to build a strong and effective working relationship with the new Clerk, David Wilson. I would also like to acknowledge the staff of the Office of the Clerk for working in a collaborative partnership and supporting better outcomes for Parliament.

David Stevenson General Manager

30 September 2015

NATURE AND SCOPE OF FUNCTIONS2013 - 20141


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Nature and scope of functions

Part 1 provides information on the statutory responsibilities of the Parliamentary Service and the strategic objectives for 2014-2018.

Responsibilities Section 7 of the Parliamentary Service Act 2000 outlines the key responsibilities of the Parliamentary Service. These are to:

• provide administrative and support services to the House of Representatives and to members of Parliament

• administer, in accordance with directions given by the Speaker, the payment of funding entitlements for parliamentary purposes

• administer the entitlements of members of the Executive under Part 3 of the Members of Parliament (Remuneration and Services) Act 2013

• administer the payment of the travel entitlements of former members of Parliament.

Members of Parliament fulfil several roles: as legislators and representatives in a parliamentary democracy, providing a government, making and passing law, scrutinising the activities of government and holding it to account, developing policy, debating issues and assisting constituents.

To assist members in fulfilling these roles, the Service provides them with access to a range of support services, including funding. This funding support, which is set out in the Speaker’s Directions, is provided through a number of mainly non-departmental appropriations.

Strategic overview The Service’s strategic framework for 2014-2018 is detailed below. It shows two strategic outcomes and five intermediate outcomes. Underpinning the Service’s work are six foundation themes that assist the Service as it moves through a journey of change towards its vision of “being recognised for excellence and innovation” by 2020. Key strategic initiatives pertaining to each theme have been identified and are reported for 2014-15 in Part 2 – Report on operating intentions. These initiatives will be reviewed and refreshed for subsequent years.

Further details on these themes can be found in the Service’s Strategic Intentions 2014-2018.

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NATURE AND SCOPE OF FUNCTIONS

Our outcomes

The House of Representatives and members receive high quality services

• Members and precinct agencies are able to work flexibly and effectively wherever they are

• Members and precinct agencies receive high quality services

• Members and precinct agencies receive quality information, research, and collection services

An accessible Parliament • The public can learn about and engage with the parliamentary process

• Parliamentary precincts are safe, used, and maintained effectively

Desired end state by 2020

We grow and develop our people • Staff are valued and passionate about providing great service to support Parliament.

Technology is a key enabler • The Service provides the tools to work securely from wherever and whenever people need to - anytime, anywhere.

We are customer centric • As an organisation the Service understands its customers’ needs.

We will provide excellent services • The Service’s customers trust it to provide high quality services.

The workplace is ‘fit-for-purpose’ • The workplace is flexible and modern, safe and secure.

We work as a parliamentary sector • The Office of the Clerk and the Service continue to deliver on outcomes for Parliament.


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REPORT ON OPERATING INTENTIONS2013 - 20142


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Report on operating intentions

This outcome focuses on ensuring that members and parties receive an effective range of services to assist them to fulfil their role as representatives and legislators, as set out in the Speaker’s Directions and within the Appropriations. The standards, to which these services are delivered, are articulated in a service level agreement agreed with members.

Intermediate outcome: Members and precinct agencies are able to work flexibly and effectively wherever they are

Target measure Satisfaction levels equal or exceed 80% with the services provided.

Result • Access to Information Communication and Technology services (ICT) has been mostly unfettered and delivered at a consistently high standard.

• Customer satisfaction with ICT service provision was slightly lower than 80 percent at 79 percent. This is a 2 percent increase on the previous year’s result and indicates a high level of service is being provided, with room for improvement over the coming year.

• There was a degradation of network services which led to some business systems and applications being unavailable at intermittent intervals throughout the year.2 However this was in the minority, with a high quality of ICT services available to access the majority of the time. A work programme is in place to improve the resiliency of the network.

Part 2 provides information on the Service’s performance in relation to its two strategic outcomes, five intermediate outcomes and the associated service impacts outlined in the Strategic Intentions 2014-18.

Outcome 1 The House of Representatives and members receive high quality services

2 Access to the internet in September 2014 was impacted by a firewall fault. There were two website outages and one incident of degraded Outlook service in November 2014. There were network issues in February 2015. Performance was steady in quarter four except for a 3 hour website outage in June 2015.

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REPORTING ON OPERATING INTENTIONS

Impacts Performance

Leverage new technology to enable flexible and efficient working conditions

• New Windows 8 tablets were added to the supported devices range, which started the Service on the journey of supporting anywhere, anytime access. The Windows 8 tablets provide users with an always connected experience, meaning no matter where they are connecting from, the user experience is the same as though they were connecting from the precinct.

• After thirty years of service, the precinct PABX was retired. A new, Microsoft Lync-based telephony service was rolled out to the Service and Office of the Clerk.

• The new Disaster Recovery (DR) environment was established. The new environment will replace the aging legacy one, and, once complete, will provide a fit-for-purpose DR capability built on a modern Infrastructure as a Service platform in the All of Government (AOG) data centre.

Continuous business improvement and new staffing model for members

• Monthly finance and annual leave reports are pushed out to members and staff with financial delegation. Several reports have been customised to meet user needs, e.g. the ICT spend report. A training programme has been rolled out for MPs, their staff and core Parliamentary Service staff on the impact of the changes to three year funding and the level of flexibility this provides. There has been continued implementation of the Purchase card that speeds up the payment process.

• At the start of the parliamentary term a new staffing model for members was put in place. The funding model provides MPs with more flexibility for hiring staff with varying skills. A performance management system has been put in place and the Service, as the employer, facilitates discussions between MPs and support staff.

New Speaker’s Directions that enable more flexibility to help members perform their work

The new Speaker’s Directions became operational on 21 September 2014. When compared with the previous Directions (2011) it provides greater flexibility in the following areas:

• Members and parties can transfer funding between years.

• The Job Families Framework allows members the scope to determine the job types that would best suit their respective offices and to engage the skills that would support their parliamentary operations.

• It allows for some transferability of staff funding to be used for non-staff purposes.

• It provides relief funding to the party whips to help them manage relief when parliamentary staff take leave.

• The domestic travel services have been simplified.

• Members can use non-scheduled travel services in exceptional circumstances.

• Members who qualify for the international travel rebate are able to use this in conjunction with their party’s leadership funding allocation.

• It sets out a simple and clear process for undertaking international travel for parliamentary purposes.


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Intermediate outcome: Members and precinct agencies receive high quality services

Target measure Members’ satisfaction levels equal or exceed 80% relating to the transition between each parliamentary term. Targets relating to key service delivery points, e.g. HR and Finance, are met.

Result • New members’ satisfaction with services provided during the parliamentary transition exceeded 80 percent with a rating of 94 percent. Returning members had a satisfaction rating of 48 percent largely due to the quality and content of communications with them that did not meet their expectations. This will be addressed in preparation for the next transition. Overall 69 percent of both new and returning members were satisfied with services provided relating to the transition between the 50th and 51st Parliaments.

• Customer satisfaction with HR and Finance service provision was 70 percent and 73 percent respectively. This is reflective of the substantial change and impact that took place for members with the changes to the Speaker’s Directions and the Members of Parliament (Remuneration and Services) Act 2013. Future actions planned to improve satisfaction levels include strengthening the provision of learning and development opportunities to member support staff, and a review of financial services to members and support staff after a year of the new Speaker’s Directions.

Impacts Performance

Business as usual standard of service delivery during the transition of Parliaments.

• During the transition, the Service provided an induction and a full range of support services to the 28 new MPs while assisting former MPs finalise their affairs. Approximately two-thirds of events-based staff are offered new employment contracts at each general election, and 90 percent of these contracts were issued within expected service levels (three working days). The Service has assisted MPs in establishing approximately 40 out-of-Parliament offices as well as providing office accommodation on the parliamentary precinct and a refresh of technology to MPs.

Intermediate outcome: Members and precinct agencies receive quality information, research and collection services

Target measure Satisfaction levels equal or exceed 80% relating to these services, and uptake of these services meets targets.

Result • Customer satisfaction with the Library is very high at 95 percent.

• All members and their staff (100 percent) have used the Parliamentary Library at least once in the year. The percentage of those using the Library’s services five or more times, or ten or more times in the year, is 98 percent and 92 percent respectively.

• Over 99 percent of responses to requests were delivered within agreed timeframes.

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Impacts Performance

Ongoing access to library information and services in a timely manner

• The Parliamentary Library completed nearly 10,500 requests. Five percent of the time spent on requests was for members of the public.

• The Library published several research papers on topics of interest to MPs, such as election results, homelessness, and parliamentary consent for troop deployments abroad, as well as a compilation of short papers designed to inform the new Parliament. Electorate profiles were updated to reflect boundary changes, new census data and 2014 election results. The Library continued its regular publications such as the Bills Digests, Monthly Economic Review and Overseas Parliamentary News.

• The Library’s cataloguing and acquisitions system was reviewed. A new cloud-based system (Koha) was implemented. Users now have a flexible and intuitive catalogue to access library material.

• The Library has been reviewing its collections to ensure they are relevant, accessible and manageable. The project phase of the review is complete, with most collections reviewed. Processing of the reviewed items will continue as part of business-as-usual.

• The Library licences a number of journal databases from New Zealand and overseas. This year the range of overseas databases was expanded to include a greater breadth and depth of subject matter.

• The Service’s electronic document management system is called Objective. As part of the Objective Enterprise Content Management Optimisation project, the Objective taxonomy was reviewed in a number of key areas. These included security access groups which were remodelled and reapplied to reflect the organisation. Key sub processes were revised and streamlined. Objective was also upgraded to version 8.2 to operate with Windows 8.1 and Office 2013.

• The Library continues to support the Office of the Clerk’s inter-parliamentary relations strategy by providing briefing papers for incoming and outgoing delegations. This year we were also involved in a library and research consultancy to the Parliamentary Library of Fiji.

This outcome focuses on ensuring that Parliament is accessible to New Zealanders and international visitors. The Service encourages students and the general public to visit the precincts and to learn about our democracy, our history, and the process of developing and passing legislation. The Office of the Clerk and the Service have established the Parliament sector, where both organisations work together to identify and deliver initiatives to increase public respect for the institution of Parliament.

Outcome 2 An accessible Parliament


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Intermediate outcome: The public can learn about and engage with the parliamentary process

Target measure Public uptake and use of parliamentary education resources meets targets. User satisfaction shows those resources are fit for purpose.

Result • Ninety-six percent of those surveyed agreed or strongly agreed that parliamentary educational resources (either virtual or printed) were fit–for-purpose.

Impacts Performance

Resources that better educate students and the public about Parliament

• Education Services has delivered several new programmes as part of their ongoing service delivery improvement. These programmes allow teachers to link a visit to Parliament with educational achievement expectations as part of the New Zealand curriculum. The new programmes on offer are:

• ‘A Capital Idea’ which has a focus on Wellington as a capital city

• ‘Eye on the Hive’ which has a focus on how the work of Parliament is accessed by the public, and

• ‘Parliament and War: Conflict and Commemoration’ a special interest visit with a focus on how Parliament responds to conflict, available for a short period to coincide with other commemorations.

• Education Services has worked with other LEOTC providers (Learning Experiences Outside the Classroom) to promote connected services through the “ChangeAgents Resource”. This online resource helps teachers provide more meaningful learning experiences for their students when they visit Wellington.

• Improved online information for booking visits has been provided, including updated information about programmes, guidelines for group visits, and an improved booking form. An updated brochure outlining the service has been produced and made available to all out-of-Parliament offices.

Engaging the public through events and activities that interest, inform and involve the public

• Tour Services has developed and revised several tours as part of their ongoing service delivery improvement, to enable more New Zealanders and international visitors to learn about our democratic processes and how they can be involved.

• The ‘Introducing Parliament’ tour was revised for the first time in many years in order to make the tour route more accessible for people with special access needs.

• A 30 minute Highlights tour designed for families has been well received by the public.

• A tour which specifically caters for public service personnel was offered in partnership with the Office of the Clerk.

• A ‘Parliament in War Time’ tour, which focuses on historic events relating to Parliament during World War One, was offered to commemorate the 100th anniversary of Gallipoli.

• Eight exhibitions were held on behalf of MPs and were open to the public, showcasing work from around the country.

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Impacts Performance

Engaging the public through events and activities that interest, inform and involve the public

• The establishment of monthly art tours allows greater public access to the Parliament Collection.

• A range of tours were combined with high tea in Bellamy’s dining room - always a drawcard for members of the public.

• Matangireia (the historic Māori Affairs Committee room) was opened to the public around the 175th anniversary of Waitangi Day.

Improvements in informational content about Parliament and improved public access to it

• Parliamentary Service staff are working with the Office of the Clerk on the enhancement of the Parliament website.

• On average, 14 website feature articles were published per month. This was an increase from 144 articles in 2013/14 to 165 this year. There has been a focus on changing the style of writing to make the features more engaging and accessible to the general public.

• Significant improvements were made at the start of the 51st Parliament to the MPs biography pages on the Parliament website. Content on the website was also updated by new electorate profiles, research papers and bills digests.

• In conjunction with the Office of the Clerk, a Communications Working Group and Communications Governance Group were established to implement the Parliament Communications Strategy. The strategy aims to maximise our ability to engage with the public, to interest, inform and involve them in their democracy. Progress has included a weekly website feature in plain English on what Parliament is doing (during sitting weeks), increasing the accessibility of the ‘In Parliament’ programme with Radio New Zealand, and improving the web streaming of Parliament TV for all mobile devices, including via the Virtual House app (see below).

Engage with new and hard-to-reach audiences, using a variety of channels, including social media

• Further developments in social media include the smarter use of the @NZParliament Twitter account. Twitter followers increased by 1,755 to a total of 9,233. This is an average increase of 146 followers per month.

• The Virtual House app for mobile devices was launched in May 2015 and provides MP biographies, a map of where MPs sit in the chamber and Parliament TV footage.3

• A new event-based website and Facebook page were developed for the Festival of Parliament (held 27 July to 5 August 2015). The Facebook page provided a pilot opportunity for both the Office of the Clerk and Parliamentary Service to explore the use of this medium for wider engagement and interaction.

• New displays and information sheets available around the precinct were of interest to different audiences.

• The ‘Parliament 101’ video was published on YouTube and on Parliament’s website and intranet. It has also been captioned and produced in NZ Sign Language.

3 There had been nearly 700 downloads of the app by mid-August 2015.


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Intermediate outcome: Parliamentary precincts are safe, used, and maintained effectively

Target measure Project and maintenance deliverables in the capital asset management plan are completed to agreed standards. Targets related to the management of the precincts are met.

Result • The deliverables in the 2014-15 capital works plan were met. Surplus space in Bowen House was subleased. Parliament Television (PTV) remains located at No.1 The Terrace and will be factored into the Service’s future accommodation strategy which is being developed in consideration of, and to coincide with, the Bowen House lease expiry in 2018.

Impacts Performance

Effective and efficient management of parliamentary assets

• The Service maintains a Capital Asset Management Plan that ascertains the expected end-of-life date for all building assets. The Capital Asset Management Plan is used as the basis for compilation of the multi-year forward looking capital finance plan. It serves as a tool to ensure existing assets’ depreciation rates are timed to expire at the assets’ anticipated end-of-life date. Effective use of the Capital Asset Management Plan should ensure there are no significant unplanned plant failures and the parliamentary assets remain available to support the buildings and business of Parliament.

Buildings and grounds on the parliamentary precincts are fit-for-purpose

• The Service contributed to the Wellington City Council project to regenerate the Cenotaph by making land and funding available to connect the Cenotaph to the Parliament grounds forecourt by way of a new set of steps. The steps not only provide a connection route, they also provide seating where the public can sit and reflect on what the Cenotaph represents. Coincidentally the British Government gifted a bronze plaque commemorating the 18 New Zealand soldiers who earned the Victoria Cross in World War 1 which is mounted at the top of the steps, fittingly looking directly at the Cenotaph. This was presented in April 2015.

• In September 2014 work commenced on replacing the ageing grout between all the marble exterior panels on Parliament House as water had started to seep into the interior of this heritage listed building. The grout joints around the entire exterior of the building are being replaced to ensure the preservation for another 100 years. In tandem with the grout work, a new membrane roof is being applied over the top of the existing roof. This project will continue until April 2016, it is an important and significant piece of work that has to be done properly.

• The Government Administration Committee’s inquiry into accessibility at Parliament revealed several areas where access for less abled persons could be improved. Improvements have been made in the grounds with resting pads for people pushing wheelchairs; improving the visibility of security bollards; increasing the visibility of glass doors with the addition of vision highlights; lowering a corner of reception counters to a wheel chair friendly level; the installation of ‘talking lifts’ in the Executive Wing (Beehive); provision of a handrail on a sloping bridge link between two buildings; the installation of tactile indicators on flooring where there are changes in level; the automation of double leaf corridor doors; and solutions have been developed for the toileting needs of seeing-eye dogs.

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Impacts Performance

Buildings and grounds on the parliamentary precincts are fit-for-purpose

• Security of the parliamentary precinct has been improved with the addition of more access control hardware, more CCTV coverage, software programming to enable the systems to respond to changing threat levels, and development of improved training plans and procedures for the security officers so they are better placed to respond to situations.

• The Service has started work to implement the Government’s 29 Protective Security Requirements and is leading the other four parliamentary precinct agencies in this work (Office of the Clerk, Parliamentary Counsel Office, Department of Prime Minister and Cabinet, Ministerial and Secretariat Services (Department of Internal Affairs)).


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MEASURING OUR SUCCESS AND REPORTING AGAINST APPROPRIATIONS 2013 - 2014

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This section reports on: the Service’s performance; the measurement of the Speaker’s and members’ satisfaction with services; management of organisational risk; and formal reporting against the Service’s appropriations.

The Service reports on an exceptions basis to the Speaker of the House of Representatives, although there are weekly meetings between the General Manager and the Speaker. The standards and performance measures are set out in its key accountability documents:

• Estimates of Appropriation, which set out each output’s key non-financial performance standards and measures

• Strategic Intentions, which sets out the Service’s operating intentions and medium-term strategic priorities.

In addition to the above documents, a Service Level Agreement (SLA) details the services to members and the associated performance information.4 The SLA continues to itemise the desired levels of performance over nine service categories:

• Communication and relationship management

• Out-of-Parliament accommodation and office security

• Publicity

• Human resource services

• Finance

• Travel services

• ICT and telecommunications

• Library and information services

• Precinct services.

Meeting with party whips and chiefs of staff to measure the quality of service Data is collected on the provision of each service contained in the SLA as to whether it meets the agreed timeframes. As this is a measure of output rather than quality, the Service meets with the whips or chiefs of staff of each political party to discuss the quality of service. The whip completes a scorecard rating the level of service that the party receives. This scorecard is reported to the Senior Management Team (SMT) and any areas for improvement are discussed and actioned.

Measuring our success and reporting against appropriations

4 The SLA will be replaced with a Memorandum of Understanding in 2015/16, with schedules itemising the expected levels of service performance.

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Parties were asked to complete a survey covering each service area within the SLA with the addition of an overall rating of satisfaction. Parties were asked to give a score out of 5. The rating scale is 1 = poor, 2 = needs improvement, 3 = satisfactory, 4 = good, 5 = excellent.

The overall satisfaction score for 2014/15 was 3.8 out of 5. This is higher than the 2013/14 result of 3.5 (see chart below). The 2014/15 result equals 76 percent overall satisfaction with the services provided. The key focus of this engagement with the parliamentary parties is on building relationships and getting an understanding of current satisfaction and improvements required. Each party and all MPs have a dedicated Relationship Advisor attached to them to provide support and advice based on their preferred way of working with the Service. In addition, functional areas such as Finance, HR and ICT also have a lead manager to support MPs.

MEASURING OUR SUCCESS

Measuring member support staff satisfaction

The annual customer satisfaction survey with member support staff was conducted in May 2015, achieving a 44 percent response rate.5 It is designed to assist the Service to effectively measure satisfaction, understand expectations, and to measure its performance against key drivers of satisfaction. The survey draws upon international best practice and uses the Common Measurements Tool (CMT) for the design of questions and the measurement scales.6

The survey solicited satisfaction ratings using a 5-point rating scale7 for the following Parliamentary Service services:

• Buildings

• Financial

• Human Resources

• Information Systems & Technology

• Parliamentary Library

• Relationship Management

• Travel

• Security

• Reception

• Telephonist

5 This is on par with previous iterations of the survey conducted in 2013 and 2014. 6 The CMT underpins the State Services Commission Kiwis Count Survey methodology used to measure New Zealanders’ satisfaction with the provision of public services. 7 1 = very dissatisfied and 5 = very satisfied

3.35 3.4 3.45 3.5 3.55 3.6 3.65 3.7 3.75 3.8 3.85

2013/14

2014/15

Overall sa4sfac4on with quality of service


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The chart shows that four of the ten service groups achieved the satisfaction rating of 80 percent that we are aiming for. The two lowest placed service groups, Finance (73 percent) and HR (70 percent), scored seven and ten percentage points respectively below the standard we set. This reflects the extent of the significant change and impact for members in the 51st Parliament around the provision of funding for support staffing, ICT and travel and relate to new determinations for how services are funded and new responsibilities for administering them, as a result of the Members of Parliament (Remuneration and Services) Act 2013 and Speaker’s Directions.

The Service intends to implement a series of interventions to address the service gap between customer expectation and the service experience.

Members’ satisfaction with the support from the Service during the parliamentary transition

Members’ overall satisfaction with the Service’s support during the transition to the 51st Parliament was 69 percent. This is broadly consistent with the two previous Elections (76 percent: 2011; 73 percent: 2008). Eighty-three percent of members found that the amount of contact they had from the Service over the 2014 election period was ‘about right’. This indicates that the Service had anticipated the level and type of contact needed with members. There is a divergence between the views from new and returning members of Parliament and this will be examined as preparation for the next election, expected in 2017.

The Service aims to achieve an overall customer satisfaction rating of 80 percent8 . In 2015, the Service achieved an overall customer satisfaction index rating of 81 percent, a slight decrease of two percentage points from 2014. The chart below highlights the customer satisfaction scores for each service group surveyed in the member support staff survey for 2014-15, with a comparison to 2013-14 and 2012-13. The results show that there are gaps with the quality of service expected and the service performance.

8 Survey responses have been analysed using a weighted mean score. Weighted mean scores take into account the distribution of responses across the entire rating scale and provide a ‘truer’ result.

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Speaker’s satisfaction with the Service

The Speaker is asked to complete a survey once a year, to rate his satisfaction with the:

• provision of resources and services to his office

• timeliness, accuracy, consistency, impartiality, and solutions-focused advice he has received

• advice on Parliamentary Service and Entitlements for the work of the Parliamentary Service Commission.

The survey asks the Speaker to rate the extent of his satisfaction on a 5-point rating scale9. In the May 2015 survey the Speaker rated his satisfaction across the three areas as 5. This was an identical result to that received in 2013 and 2014.

Strategic risks and risk management

The General Manager is responsible for ensuring a risk management framework is embedded within the Service and that all organisational risks are managed to the expectations of the Speaker of the House of Representatives. The SMT is responsible for identifying the key risks that may impact on the achievement of the strategic objectives, for identifying mitigation strategies, and for monitoring the effectiveness of these strategies.

All staff members of the Service have a responsibility for identifying and managing risk, and the Service’s risk management framework provides a systematic process for the identification and evaluation of organisational risks to the Service achieving its objectives. A management assurance programme, which includes the Parliament Sector Advisory Board, internal audit and legislative compliance, ensures that the mitigation strategies for key operational risks are being managed effectively.

The risks being managed by the Service relate to those that could impact the systems, processes and management practices, and the operating environment of the Service, and thereby the reputation of the Speaker’s Office, members and Parliament.

The specific risks are:

We don’t deliver to agreed service levels There is a risk that the Service will fail to understand the expectations of the service to be delivered, the impacts of funding constraints and the public’s need to access the parliamentary process. This could lead to a loss of trust and confidence in the Service and a declining public engagement in the parliamentary process.

91 = very dissatisfied and 5 = very satisfied


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The Service does not have the appropriate culture or workforce capability and capacity

The potential risk is that the Service does not have the appropriate behaviours in place to work seamlessly across the organisation to deliver high quality services. If the Service cannot attract the right people, it faces having key roles unfilled and capacity constraints affecting service delivery. This will affect the delivery of services to its range of customers including members, undermining trust and confidence in the ability of the Service to meet their needs and the requirements of Parliament.

The Service has a serious security breach

If the Service suffers a physical security breach, this could lead to widespread disruption of operations or service delivery. An information security failure exposes the Service and leads to a serious breach of privacy or the release of sensitive / confidential information, with an impact on critical functions, e.g. disabling the ICT network.

Risk mitigation strategies are in place for the identified risks.

Reporting against appropriations

The Parliamentary Service has achieved the majority of agreed performance standards in the 2014-15 year against its appropriations. Each appropriation is detailed below together with an assessment of performance (both financial and non-financial).

Services to members

This appropriation is intended to achieve the provision of a range of services and facilities to members, which is responsive to their needs as legislators and elected representatives, and makes the most effective use of resources allocated by the Government.

Measure Performance standard 2013-14 Result 2014-15 Result

The Speaker is satisfied with the provision of resources and services to his office.

Customer satisfaction of at least 4 on a scale of 1 to 5 in the annual Speaker’s satisfaction survey.

Achieved Score of 5 overall satisfaction.

Achieved Score of 5 overall satisfaction.

Party whips (as a proxy for members) are satisfied with the provision of support.

Party whips (as a proxy for members) are satisfied with the provision of support via bi-annual meetings.

Achieved Score of 3.5/5 overall satisfaction.

Achieved

Score of 3.8/5 overall satisfaction.

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10 This measure is a duplicate to the members’ support staff survey (see page 32) and is based on the Kiwis Count Survey. The survey is used as a proxy for the level of overall satisfaction that customers have with the Service. Historically surveys with members have elicited low response rates. Members’ support staff are the key conduit to MPs and thus are able to provide good insight into the Service’s performance, both within and out of the parliamentary precinct.

11 Feedback from returning members indicated that they were dissatisfied with the quality and content of communications with the Service in relation to the changes arising from the new Speaker’s Directions 2014 and the Members of Parliament (Remuneration and Services) Act 2013. The Service will take this into account when planning for the next parliamentary transition.


Customers are satisfied with the overall quality of services.10

Survey respondents report an 80% or more (weighted mean) overall quality of service satisfaction rating.

Achieved 83%

Achieved 81%

New members are satisfied with services provided over the election period

New members report an 80% or more overall satisfaction rating with the quality of services received during the transition of Parliament.

Not applicable Achieved

94%

Returning members are satisfied with services provided over the election period

Returning members report an 80% or more overall satisfaction rating with the quality of services received during the transition of Parliament.

Not applicable Not achieved11

48%

Financial Performance

Actual

Approved Appropriation

(Figures are $000s and GST exclusive) 2015 2015

Total expenditure 6,831 6,835

Support services to the Speaker

This appropriation will provide funding to the Speaker to run his office as well as to provide for external triennial reviews of the appropriations supporting Parliament.


The Speaker is satisfied with the provision of resources and services to his office.

Customer satisfaction of at least 4 on a scale of 1 to 5 in the annual Speaker’s satisfaction survey.

Achieved

Score of 5 overall satisfaction.

Achieved

Score of 5 overall

satisfaction.


Actual



Total expenditure 433 435


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Operations, Information and Advisory Services multi-category expense

This appropriation is intended to achieve the successful operation of Parliament. The parliamentary precincts meet the constitutional and institutional requirements of a Parliament; that is, providing accessibility and security, a forum for debate and public participation, and effective office facilities and support services.


Members’ support staff are satisfied with the overall quality of services.

Survey respondents report an 80% or more (weighted mean) overall quality of service satisfaction rating.

Achieved

83%

Achieved

81%

Building and Operations Management

This category is intended to achieve building maintenance and operational services.


The number of hits on educational resources web page increases.

The number of hits on educational resources web page increases.

Achieved

1,300 total hits recorded.

Achieved

2,772 total hits recorded.

Users agree that virtual resources are fit for purpose and align with NZ curriculum or Te Marautanga o Aotearoa.

80% of users of the resource agree or strongly agree that virtual resources are fit-for-purpose and align with the New Zealand Curriculum (2007) or Te Marautanga o Aotearoa (2008).

Achieved

95% of users agreed/strongly agreed.

Achieved


The number of teachers who have used educational resources to support their visit to Parliament.

50% of school teachers visiting Parliament use parliamentary educational resources.

Achieved

72%

Achieved

55%

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Educational resources are fit for purpose and align with NZ curriculum or Te Marautanga o Aotearoa.

80% of users of the resource will agree or strongly agree that the resources are fit-for-purpose and align with the New Zealand Curriculum (2007) or Te Marautanga o Aotearoa (2008).

Achieved


Achieved


The public has access to the parliamentary precinct.

The number of people visiting parliament each year does not fall below 75,000.

Achieved

76,657 people visited Parliament

Achieved 87,392 people visited Parliament

The number of New Zealanders taking a parliamentary tour.

The number of New Zealanders taking a parliamentary tour increases.

Not achieved

27,163 New Zealanders took a parliamentary tour.

Achieved12

30,712 New Zealanders took a parliamentary tour.

The public gallery of the House of Representatives is available for the public to access.

The public gallery of the House of Representatives is available for the public to access 99% of the time of its sitting.

Achieved Achieved

Visitors undertaking a parliamentary tour rate the parliamentary experience as good or excellent.

90% of visitors rate their parliamentary experience as good or excellent.

Achieved

96.4% of visitors rated their experience as good or excellent.

Achieved

98% of visitors rated their experience as good or excellent.

The condition of our heritage buildings is maintained to reflect their national significance.

Deliverables from the 2013-2016 Capital Works plan for 2014/15 are completed.

Achieved Achieved

12 The number of New Zealanders taking a parliamentary tour in 2013/14 was inaccurately reported as 30,732. This was a result of a transposition error. In 2012/13, the number of New Zealanders taking a parliamentary tour was 30,082.


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Parliamentary precincts are safe and secure.

No security breaches occur as a result of security systems failure.

CCTV coverage within the precincts will be extended.

Security incidents are responded to within 7 minutes of notification.

Achieved Achieved

Achieved

Achieved Achieved

Substantially met13

Chamber and Gallery services meet the needs of the Speaker, the Clerk of the House, members, officials and public visitors.

No unauthorised access into the Debating Chamber.

Achieved Achieved

13 The majority of security incidents were responded to within 7 minutes with one failure experienced on 25 June 2015 when Greenpeace protestors ascended to the roof of Parliament House. The type and number of incidents follow: scheduled/unscheduled protests 9; medical 11; fire 1; other (i.e. lift entrapment, appliance left on, insecure areas) 26; criminal 1; persons of interest 20.


Actual




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Parliamentary Information, Communication and Technology Services

This category is intended to achieve the supply of information communications and technology services.


Customers receive quality network access to email services, file and print services, internet and intranet access via desktop or mobile devices in the precinct.

Customers receive network access to email services, file and print services, internet and intranet access via desktop or mobile devices in the precinct 99.8% of the time.

Achieved Achieved 99.9%

IT hardware is provisioned in a timely way.

New hardware (Blackberry, iPhone, iPad, Laptop, Tablet PC) is provisioned within 24 hours of approval of request.

Achieved Substantially met14

Priority 1 incidents15 are resolved in a timely way.

75% of stipulated Priority 1 incidents reported to the ICT Service Desk are resolved within 30 minutes.

Achieved

95%

Achieved

85%

Members have access to Priority 1 services.

Members have access to Priority 1 services 99.8% of the time.

Achieved

99.8%

Achieved

99.9% 16

On-site incidents for out-of-Parliament offices are responded to in a timely way.

At least 90% of on-site incidents for out-of-Parliament offices with Priority 1 service status are responded to on-site within six business hours.

Achieved

99.9%

Achieved

100%

No incidents are reported of unauthorised access to members’ e-mail or other electronic data stored on the parliamentary network due to PS ICT action or inaction.

No incidents are reported of unauthorised access to members’ e-mail or other electronic data stored on the parliamentary network due to Parliamentary Service ICT action or inaction.

Achieved No incidents were reported of unauthorised access to members’ e-mail or other electronic data stored on the parliamentary network due to the Service’s action or inaction.

Achieved No incidents were reported of unauthorised access to members’ e-mail or other electronic data stored on the parliamentary network due to the Service’s action or inaction.

14 Missed in November and December 2014 due to the unusual number of hardware requests associated with the election. 15 Business critical systems and infrastructure to enable members, staff, and other precinct agencies to carry out their work via desktop and mobile hardware systems. 16 Over the course of the year, network availability was at a sustained high level. There were some incidents where the network was unavailable or affected for some users. These included access to the internet in September 2014 that was impacted by a firewall fault. There were two website outages and one incident of degraded Outlook service in November 2014. There were network issues in February 2015. Performance was steady in quarter four except for a three hour website outage in June 2015. A work programme is in place to improve the resiliency of the network.


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Customers are satisfied with the quality of ICT services.

Survey respondents report an 80% or more (weighted mean) overall quality of service satisfaction rating. 17

Not achieved

77%

Not achieved

79%


Actual


(Figures are $000's and GST exclusive) 2015 2015


Parliamentary Library

This category is intended to achieve the supply of library services.


Customers are satisfied with the quality of Library services.

Primary clients report an 80% or more (weighted mean) overall quality of service satisfaction rating. 18

Achieved

92%

Achieved

95%

Members’ and their staff’s use of Library services per year:

• once or more• five or more• ten or more

Percentage of members’ or their staff’s usage of Library services per year:

• 95% once or more • 75% five or more • 50% ten or more

Achieved

99% 98% 90%

Achieved

100% 98% 92%

The number of complaints from primary clients.

The number of complaints from primary clients remains the same or decreases.

Achieved

No formal complaints in the year.

Achieved

No formal complaints in the year.

17 This survey is based on the Kiwis Count Survey. The results of the survey are based on input from members’ support staff as a proxy for members. Historically surveys with members have elicited low response rates. Members’ support staff are the key conduit to MPs and thus are able to provide good insight into the Service’s performance, both within and out of the parliamentary precinct. 18 See footnote 17.


Actual




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Personnel, accounting and advisory services to members and other parliamentary agencies

This category is intended to achieve the supply of finance, HR and advisory services.


Decrease in the number of low value invoices processed.

Low value invoices decrease due to implementation of Purchase Card.

2014 target: 15%

2015 target: 30%

2016 target: 30%

Achieved

Invoices processed are down 15.5% on 2012/13.

Achieved

Invoices processed are down 31% on 2013/14.

Provide timely reporting, budgeting and forecasting services.

Deliver financial results by four working days of month end.

Achieved Not achieved 19

Customers are satisfied with the quality of financial services.


Not achieved

Overall satisfaction scored at 78%.

Not achieved

Overall satisfaction scored at 73%. 21

Requests for employment agreements for members’ staff are dealt with in a timely manner.

100% of requested employment agreements for members’ staff are provided within three working days of receipt (reduced from five working days in 2013/14).

Substantially met 99% of employment agreements were provided within five working days of receipt.

Substantially met 90% completed within three working days of receipt. 22

Customers are satisfied with the quality of HR services.


Not achieved

Overall satisfaction scored at 78%.

Not achieved

Overall satisfaction scored at 70%. 24

19 Performance standard not met in the months of July and August 2014 due to year end, September and October 2014 impacted by the General Election period and January 2015 due to extended timeframes from the Treasury. 20 See footnote 17. 21 Future actions planned to improve satisfaction levels include reviewing training provision and approach to training; assess resourcing and get agreement on the level of service to be provided; and review of financial services to members and support staff after a year of the new Speaker’s Directions. 22 Lower percentage obtained in 2014/15 reflects revised performance standard and the impact of Election 2014 which resulted in a higher than normal number of employment agreements needing to be produced. 23 See footnote 17. 24 Future actions planned to improve satisfaction levels include strengthening the provision of learning and development opportunities to member support staff, preparation for collective bargaining and ensuring consistency of advice to customers.


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Recommendations from the Fifth Triennial Appropriations Review Committee (ARC) report are addressed.

The Service implements ARC recommendations that the Parliamentary Service Commission endorses.

2014/15 Target: New Speaker’s Directions are completed by election date.

2015/16 Target: A survey of members shows they understand their entitlements and any changes to them.

Achieved Achieved


Actual




Department capital expenditure

This category ensures the Service has the correct facilities and tools to enable it to fulfil its purpose to service New Zealand’s Parliament.

Unaudited

Actual2015$000

Main Estimates

2015$000

Supp Estimates

2015$000

Property plant and equipment 1,378 474 1,265

Intangibles 3,485 4,026 3,742

Total Appropriation 4,863 4,500 5,007

Seventy-two percent of Departmental capital expenditure was spent on IT hardware and software. This expenditure ensures that all users of the Service’s information technology have fit-for-purpose and cost effective tools for their computing, communications and information technology needs. The balance was spent on plant and equipment and leasehold improvements.

3919

PEOPLE AND CULTURE 2013 - 2014

4


40

In 2014/15, the new organisational vision was launched across the Service – to be recognised for excellence and innovation. Over the past year, the Service has been committed to and has made great progress working towards building and strengthening people capability through a focus on our foundational theme of ‘We grow and develop our people’.

The Service operates in a complex yet unique environment requiring a broad range of skills, cultures and expertise. The Service has two distinct workforces:

• the member support staff that work directly to members and within the party political offices,

• the core workforce that provides a range of services to members, agencies on the wider parliamentary precinct and the public.

There has been a significant amount of work undertaken on the development of three key people projects for core staff: the Remuneration, Performance Management and Behavioural Frameworks.

This work reflects a direct response to the findings of the culture survey conducted at the end of 2013. Our people told us in our 2013 survey that the current culture differed from that preferred. They wanted better rewards and recognition, to understand the vision and strategy of the organisation and the significance of their role in delivering the vision. The PIF review further confirmed this and highlighted the need to build our strategic people capability, to improve our performance management, review our remuneration framework and ensure excellent learning and development opportunities for all staff.

For member support staff, the focus on our people has included the implementation of new job families and a remuneration structure for the 51st Parliament. We have also launched a new performance framework and a learning and development system (including training) for these staff members. These were substantial pieces of work resulting in significant change. The Service organises forums in Wellington and network meetings across the country for out-of-Parliament staff in order to pass on organisational news and listen to their suggestions and views on improving our service delivery to members.

People and Culture

41

ORGANISATIONAL HEALTH AND CAPABILITY

Growing and developing our people

The Service has a strong commitment towards creating a positive workplace culture recognising that this is an ongoing and evolving process. Growing and developing our people remains a top priority as can be seen by the significant amount of people focused initiatives and projects undertaken over the past 12 months and planned over the next four years.

A move from HR to People and Culture

Following a review of the existing HR capability that was undertaken in February 2015, a three-year People Strategy for the Service was developed; the early phase of which has merged separately functioning teams, introduced a delivery team and moved towards a more holistic approach to people and culture for the Service. The focus has been on people infrastructure and getting the basics right. This new model has already proved its value in ensuring the effective delivery of the key people projects this year.

Our key people projects

The most visible and high impact activity for core staff in the last year has been the development of the three key people projects - the remuneration, performance management and behavioural frameworks. These projects are linked in order to enable and build a better culture and place to work. The Service has worked effectively and collaboratively, including a Joint Working Party with Parliamentary Service and the Public Service Association (PSA) to progress these initiatives. Full implementation is expected by October 2015.

Remuneration framework

In 2014/15 remuneration became a focus for the Service. It had been significantly behind the market in this space, silos had been created by five different job families and there were difficulties in attracting staff to the Service. Staff leaving the Service within the first two years of being employed cited remuneration as a key reason.

The Service recognised that a fair and consistent approach to remuneration was essential to delivering organisational outcomes and has worked with remuneration specialists, to successfully develop a broadbanding remuneration framework and career matrix. The system is fair and transparent with visibility for all staff across the career levels. Our people were an integral part of this initiative and a ratification vote was held in July 2015 which supported the introduction of the remuneration framework. Participation across the organisation was significant and confirmed how integral the framework is to the success of the organisation in achieving its vision. This framework is innovative and new to the public sector.

The remuneration framework will be introduced for core staff from 1 September 2015 and will ensure that we can retain and attract talent, be more effective in our succession planning and continue to build better capability across the Service.

Shaping My Future – performance and behaviour

Another area identified as needing improvement was the way in which our performance and behaviours were managed at the Service. There was a lack of consistency across the business units and a general lack of understanding about how individual roles contributed to the overall vision of the organisation.


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Our workforce

The creation of a strong workplace culture has been a major focus for the Service. This is an ongoing and evolving process and remains a top priority. In order to measure and understand the culture, the Service has introduced the following initiatives:

Developing workforce capability

As of 30 June 2015, the Service employed 705 staff, equivalent to 581 full time equivalent staff (FTEs). This contrasts with 727 staff equivalent to 602 FTEs as of 30 June 2014. Sixty-one percent of staff are employed to support members of Parliament or the Party Political offices (member support staff), and 39 percent provide corporate support services and advice on behalf of the General Manager of the Parliamentary Service.

To address some of these issues, Shaping My Future, the newly branded performance and behavioural framework has been developed throughout 2014/15 and will be implemented in October 2015. Cornerstone is the new online tool which supports the framework.

Of significance for the Service is the introduction of a behavioural framework based on the Korn Ferry model (previously known as Lominger). As one of the first users of the model across the public sector, this is an innovative move and has involved a high level of staff participation. Focus groups across the career levels developed behaviours which will now be adopted by all core staff. In addition, organisational wide performance objectives will form part of every performance plan and align with our vision and strategic initiatives.

Relationship with unions

The relationship with the PSA and the Service Food Workers Union continues to grow in a positive and collaborative way.

The Service has made excellent progress in partnering with the unions on various working parties, for example, the Joint Remuneration and Performance Working Party and the Code of Conduct Working Party. Monthly meetings also ensure regular communication around relevant programmes of work. The collective bargaining process is scheduled for October 2015 and work is underway to prepare for negotiations.

Feedback received from some staff and unions following the release of the amended Code of Conduct in 2014 indicated concerns around certain specific clauses. A Joint Working Party was established in February 2015 and has been working through a review of these clauses in the Code of Conduct, to ensure that the document is fair, explicit in its instructions to staff and better understood. It is anticipated that the outcome of the review will be implemented in the second half of 2015.

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ORGANISATIONAL HEALTH AND CAPABILITY

Diversity, Equal Employment Opportunities (EEO)

The Service prides itself that one of its value propositions is to offer staff a flexible working and work-life balance and this is reflected in the fact that over a third of the Service’s workforce is part-time, of which 75 percent are female.25 The Service recognises the value of flexible working and is working towards a formal policy to promote effective use.

Gender profile The Service has a workforce that is made up of 63 percent women. This is higher than the 2014 Public Service figure of 60.2 percent.

Ethnicity profile

2015 Public Service June 2014 NZ working age 2014

Māori 15.9% 16.6% 12.7%

Pacific 5.9% 8.0% 5.5%

Asian 6.7% 8.2% 12.5%

25 Part-time workforce refers to staff working less than a 40 hour week.

Note: Not all staff record their ethnicity. The Service has revised its method for calculating ethnicity figures in line with that of the State Services Commission.

2014 2015

Member Support Staff 353 337

Core Staff 249 244

Total FTE 602 581

0

100

200

300

400

500

600

700


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The Service’s workforce is represented by 35 different ethnicities; a drop from 39 in the previous year. The Service’s representation for Māori, Pacific and Asian groups is slightly lower than that of the Public Service; however our representation for Māori and Pacific is higher than the NZ working age population (2014) for these groups.

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Statement of responsibility

I am responsible, as General Manager of the Parliamentary Service, for:

• the preparation of the Parliamentary Service’s financial statements, and statements of expenses and capital expenditure, and for the judgements expressed in them;

• having in place a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting;

• ensuring that end of year performance information on each appropriation administered by the Parliamentary Service is provided in accordance with sections 19A to 19C of the Public Finance Act 1989, whether or not that information is included in this annual report; and

• the accuracy of any end of year performance information prepared by the Parliamentary Service, whether or not that information is included in the annual report.

In my opinion:

• the financial statements fairly reflect the financial position of the Parliamentary Service as at 30 June 2015 and its operations for the year ended on that date; and

• the forecast financial statements fairly reflect the forecast financial position of the Parliamentary Service as at 30 June 2016 and its operations for the year ending on that date.

David Stevenson General Manager

30 September 2015

STATEMENT OF RESPONSIBILITY


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Independent Auditor’s Report

To the readers of Parliamentary Service’s annual report for the year ended 30 June 2015

The Auditor General is the auditor of Parliamentary Service (the Service). The Auditor General has appointed me, Karen Young, using the staff and resources of Audit New Zealand, to carry out the audit on her behalf of:

• the financial statements of the Service on pages 52 to 81, 86 to 103 and 109 to 114, that comprise the statement of financial position, statement of commitments, statement of contingent liabilities and contingent assets as at 30 June 2015, the statement of comprehensive revenue and expense, statement of changes in taxpayers funds, and statement of cash flows for the year ended on that date and the notes to the financial statements that include accounting policies and other explanatory information;

• the performance information prepared by the Service for the year ended 30 June 2015 on pages 16 to 23 and 30 to 38;

• the statements of expenses and capital expenditure of the Service for the year ended 30 June 2015 on pages 82 to 84 and 104 to 108; and

• the schedules and statements of non-departmental activities which are managed by the Service on behalf of the Crown on pages 86 to 103 that comprise:

• the schedules of: revenue and expenses for the year ended 30 June 2015;

• the statements and statements of: assets, liabilities and revaluation reserves, commitments, contingent liabilities and assets as at 30 June 2015; and

• the notes to the schedules that include accounting policies and other explanatory information.

Opinion

In our opinion:

• the financial statements of the Service:

• present fairly, in all material respects:

• its financial position as at 30 June 2015; and

• its financial performance and cash flows for the year ended on that date;

• comply with generally accepted accounting practice in New Zealand and have been prepared in accordance with Public Benefit Entity standards;

• the performance information against appropriations of the Service:

• presents fairly, in all material respects, for the year ended 30 June 2015:

• what has been achieved with the appropriation; and

• the actual expenses or capital expenditure incurred compared with the appropriated or forecast expenses or capital expenditure;

47

• complies with generally accepted accounting practice in New Zealand;

• the statements of expenses and capital expenditure of the Service on pages 82 to 84 and 104 to 108 are presented fairly, in all material respects, in accordance with the requirements of section 45A of the Public Finance Act 1989; and

• the schedules and statements of non-departmental activities which are managed by the Service on behalf of the Crown on pages 86 to 103 present fairly, in all material respects, in accordance with the 2014 Treasury Instructions:

• the schedules of: revenue and expenses for the year ended 30 June 2015;

• the statements and statements of: assets, liabilities and revaluation reserves, commitments, contingent liabilities and assets as at 30 June 2015; and

• the notes to the schedules that include accounting policies and other explanatory information.

Our audit was completed on 30 September 2015. This is the date at which our opinion is expressed.

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

Basis of opinion

We carried out our audit in accordance with the Auditor General’s Auditing Standards, which incorporate the International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and carry out our audit to obtain reasonable assurance about whether the information we audited is free from material misstatement.

Material misstatements are differences or omissions of amounts and disclosures that, in our judgement, are likely to influence readers’ overall understanding of the information we audited. If we had found material misstatements that were not corrected, we would have referred to them in our opinion.

An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in the information we audited. The procedures selected depend on our judgement, including our assessment of risks of material misstatement of the information we audited, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Service’s preparation of the information we audited in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Service’s internal control.

An audit also involves evaluating:

• the appropriateness of accounting policies used and whether they have been consistently applied;

• the reasonableness of the significant accounting estimates and judgements made by the General Manager;

• the appropriateness of the reported report on operating intentions and measuring our success and reporting against appropriations within the Service’s framework for reporting performance;

• the adequacy of the disclosures in the information we audited; and

• the overall presentation of the information we audited.


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We did not examine every transaction, nor do we guarantee complete accuracy of the information we audited. Also, we did not evaluate the security and controls over the electronic publication of the information we audited.

We believe we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion.

Responsibilities of the General Manager

The General Manager is responsible for preparing:

• financial statements that present fairly the Service’s financial position, financial performance, and its cash flows, and that comply with generally accepted accounting practice in New Zealand;

• performance information against appropriations that presents fairly what has been achieved with each appropriation, the expenditure incurred as compared with expenditure expected to be incurred, and that complies with generally accepted accounting practice in New Zealand;

• statements of expenses and capital expenditure of the Service, that are presented fairly, in accordance with the requirements of the Public Finance Act 1989; and

• schedules and statements of non-departmental activities, in accordance with the Treasury Instructions, that present fairly those activities managed by the Service on behalf of the Crown.

The General Manager’s responsibilities arise from the Public Finance Act 1989.

The General Manager is responsible for such internal control as is determined is necessary to ensure that the annual report is free from material misstatement, whether due to fraud or error. The General Manager is also responsible for the publication of the annual report, whether in printed or electronic form.

Responsibilities of the Auditor

We are responsible for expressing an independent opinion on the information we are required to audit, and reporting that opinion to you based on our audit. Our responsibility arises from the Public Audit Act 2001.

Independence

When carrying out the audit, we followed the independence requirements of the Auditor General, which incorporate the independence requirements of the External Reporting Board.

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

Karen YoungAudit New ZealandOn behalf of the Auditor GeneralWellington, New Zealand

49

Financial informationFor the year ended 30 June 2015


50

For the year ended 30 June 2015

The Service reported a surplus of $1.060m for the year ended 30 June 2015 (2014 $0.923m) as a result of some key projects continuing into 2015/16.

The 2014 General Election during the 2014/15 financial year increased workload to support parties and members.

The Service continues to experience high personnel (45 percent), fixed (35 percent) and semi-fixed (11 percent) costs with only 8 percent variable costs. A full breakdown is shown in the chart below.

2014/15 Departmental expenses

The Fifth Triennial Review by the Appropriations Review Committee recommended the Service change the funding model for member support staff. As a result, the Service transferred the support staff funding from departmental to non-departmental following the 2014 election for the 51st Parliament. This resulted in a significant decrease in Crown funding for departmental operations from prior years.

Personnel - core staff 34%

Personnel - support staff 11%

Fixed 35%

Semi-Fixed 11%

Variable 8%

Support Services to the Speaker

1%

Financial overview

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Capital expenditure

Departmental capital expenditure for the year ended 30 June 2015 was $4.863m against a budget of $5.007m. Of the $4.863m capital expenditure, there was $3.523m (72.4% of the total capital expenditure) spent on information technology software and hardware. This expenditure ensures that all users of the Service’s information technology have fit-for-purpose and cost effective tools for their computing, communications and information technology needs.

Non-departmental capital expenditure on the parliamentary buildings was $5.562m for 2014/15 and a cumulative amount of $13.820m for the current Multi-Year Appropriation which expires on 30 June 2016. In 2014/15, there have been a number of projects completed including the Cenotaph steps, CCTV (stage 1) and the precinct UPS upgrade. Work on precinct perimeter security, accessibility and Parliament House exterior repairs continues into 2015/16.

Usage of the capital expenditure appropriation is shown below.

Non-Departmental Multi-Year Capital Expenditure

The year ahead

The Service operates with high fixed costs and forecast fiscal pressures from rising costs in accommodation, utilities, information technology and personnel. The majority of the Service’s outcomes and outputs are driven by the needs of each Parliament.

The Service administers the funding and provides a range of support services, which are necessary for members to fulfil the responsibility of their elected office. The Service aims to provide a responsive and flexible service while delivering value through cost effective and efficient operations. Although the Service has invested to increase productivity and efficiency, the costs are forecast to continue to rise on a year on year basis.

0% 20% 40% 60% 80% 100%

Departmental Capex

Non-‐Departmental Current Year Capex

Non-‐Departmental MYA Capex

2014/15 Capital Expenditure

Actual

Remaining


52

Statement of comprehensive revenue and expenseFor the year ended 30 June 2015

Unaudited

Actual2014$000 Notes

Actual2015$000

Main Estimates

2015$000

Supp Estimates

2015$000

Forecast2016$000

Revenue

67,151 Crown 58,472 54,040 58,472 49,097

4,508 Departmental 1 4,904 3,459 4,839 5,037

541 Other revenue 1 581 542 651 1,042

72,200 Total revenue 63,957 58,041 63,962 55,176

Expenses

37,294 Personnel 2 27,693 21,517 28,522 20,973

5,185 Depreciation and amortisation 7 & 8 5,096 4,500 5,231 5,551

2,077 Capital charge 3 2,092 2,077 2,092 2,092

381 Restructuring Costs 298 434 260 -

26,340 Other expenses 4 27,718 29,513 27,857 26,560

71,277 Total expenses 62,897 58,041 63,962 55,176

923 Surplus 1,060 - - -

- Other comprehensive revenue and expense

- - - -

923 Total comprehensive revenue and expense

1,060 - - -

Explanations of major variances against the original 2014/15 budget are provided in Note 19.

The notes to the accounts form part of and are to be read in conjunction with these financial statements

53

Statement of financial position For the year ended 30 June 2014As at 30 June 2015

Unaudited


Actual2015$000

Main Estimates

2015$000

Supp Estimates

2015$000

Forecast2016$000

AssetsCurrent assets

5,761 Cash and cash equivalents 3,536 7,530 4,839 6,370

8,685 Debtors and other receivables 5 9,670 4,283 8,380 8,330

876 Prepayments 842 957 850 850

44 Inventories 6 142 47 45 45

15,366 Total current assets 14,190 12,817 14,114 15,595

Non-current assets

12,768 Property, Plant & Equipment 7 10,837 15,630 10,698 8,730

5,708 Intangible assets 8 7,289 3,662 7,554 8,471

18,476 Total non-current assets 18,126 19,292 18,252 17,201

33,842 Total assets 32,316 32,109 32,366 32,796

LiabilitiesCurrent liabilities

3,806 Creditors and other payables 9 3,192 3,193 4,000 4,000

923 Return of operating surplus 11 1,060 - - -

2,568 Employee entitlements 10 1,441 2,760 1,810 2,220

7,297 Total current liabilities 5,693 5,953 5,810 6,220

389 Non current liabilities

Employee entitlements10

467 - 400 420

7,686 Total liabilities 6,160 5,953 6,210 6,640

26,156 Net assets 26,156 26,156 26,156 26,156

26,156 Taxpayer funds 12 26,156 26,156 26,156 26,156

26,156 Total taxpayers’ funds 26,156 26,156 26,156 26,156




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Statement of changes in taxpayers’ funds


Unaudited


Actual2015$000

Main Estimates

2015$000

Supp Estimates

2015$000

Forecast2016$000

25,760 Balance at 1 July 2014 26,156 26,156 26,156 26,156

923 Total comprehensive revenue and

expense

1,060 - - -

Owner Transactions

396 Capital injection - - - -

(923) Return of operating surplus to the Crown

11 (1,060) - - -

26,156 Balance at 30 June 2015 26,156 26,156 26,156 26,156



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Statement of cash flows For the year ended 30 June 2014For the year ended 30 June 2015

Unaudited


Actual2015$000

Main Estimates

2015$000

Supp Estimates

2015$000

Forecast2016$000

Cash flows from operating activities

65,057 Receipts from Revenue Crown 57,413 54,040 58,472 49,097

4,825 Receipts from other revenue 5,495 4,001 5,820 6,129

(26,968) Payments to suppliers (28,422) (30,563) (28,014) (26,636)

(37,340) Payments to employees (28,929) (21,517) (29,419) (20,467)

(2,077) Payments for capital charge (2,092) (2,075) (2,092) (2,092)

263 Goods and services tax (net) 140 614 241 -

3,760Net cash flows from operating

activities

133,605 4,500 5,008 6,031

Cash flows from investing activities

- Receipts from sale of property, plant and equipment and intangibles

(77) - - -

(693) Purchase of property, plant and equipment

(1,356) (474) (1,265) (1,125)

(3,315) Purchase of intangible assets (3,474) (4,026) (3,742) (3,375)

(4,008) Net cash flow from investing

activities

(4,907) (4,500) (5,007) (4,500)

Cash flows from financing activities:

(1,521) Return of operating surplus (923) - (923) -

(1,521)Net cash flow from financing activities

(923) - (923) -

(1,769)Net increase/(decrease) in cash held (2,225) - (922) 1,531

7,530 Cash at the beginning of the year 5,761 7,530 5,761 4,839

5,761 Cash at the end of the year 3,536 7,530 4,839 6,370




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Statement of commitments

As at 30 June 2015

Actual2014$000

Actual2015$000

Non-cancellable operating lease commitments

7,515 Not later than one year 7,377

25,674 One to five years 19,386

6,078 More than five years 5,628

39,267 Total non-cancellable operating lease commitments

32,391

The Service leases four properties. Bowen House is a lease covering levels Ground to 21 for office accommodation, two residential units and car parks. No. 3 the Terrace is for select committee and meeting room accommodation with a separate lease at No.1 The Terrace used for Parliamentary TV. The Thorndon Store is used for an off-site storage facility only.

There are no contingent rents; they are all fixed term. There are no restrictions imposed by the lease arrangements and only the No. 3 The Terrace lease is cancellable after 24 years from the start of the lease.

There is an escalation clause on No. 3 The Terrace of an annual fixed increase in rent at 3% compounding as well as regular market-rate reviews. There are no escalation clauses for the Bowen House, No. 1 The Terrace or Thorndon Store leases.

Bowen House has two rights of lease renewal dates every eight years with a final expiry of 14 December 2034. This lease is currently subject to rent review effective from December 2014. The rent review is expected to go to arbitration. The Thorndon Store lease renewal date is 1 September 2021. The No. 3 the Terrace has no lease renewal dates; No. 1 The Terrace has a termination date of 31 December 2018.

Other non-cancellable commitments

The Service has entered into non-cancellable contracts for computer support, building services and other

contracts for services.

Capital commitments

The Service had no capital commitments at 30 June 2015. (2014 nil).


Non-cancellable operating lease commitments

The Service has long-term leases on its premises in Wellington. The annual lease payments are subject to three yearly reviews. The amount disclosed below as future commitments is based on the current rental rates.

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Actual2014$000

Actual2015$000

Non-cancellable operating leases

431 Not later than one year 494

1,658 Later than one year and not later than five years 1,193

- Later than five years -

2,089 Total non-cancellable operating leases 1,687

Statement of contingent liabilities and contingent assets

As at 30 June 2015

Contingent liabilities

There were no contingent liabilities in 2015 (2014: nil).

Unquantifiable contingent assets

There are no unquantifiable contingent assets in 2015 (2014: nil).

Operating leases as a lessor

The Service has three non-cancellable leases related to retail operations in Bowen House. The Service also has cancellable leases related to accommodation tenancies in Bowen House and office tenancies in Bowen House and Parliament House.



58

Statement of accounting policies

Reporting entity

Parliamentary Service (the “Service”) is a Government Department as defined by the Public Finance Act 1989 (PFA) and is domiciled and operates in New Zealand. The relevant legislation governing the Service’s operations includes the PFA and the Public Accountability Act 1998. The Service’s ultimate parent is the New Zealand Crown.

In addition the Service has reported on Crown activities that it administers.

The Service’s primary objective is to provide services to members of Parliament and other agencies rather than making a financial return.

The Service has designated itself as a public benefit entity (PBE) for financial reporting purposes.

The financial statements of the Service are for the year ended 30 June 2015. The financial statements were authorised for issue by the General Manager on 30 September 2015.

Basis of preparation

The financial statements have been prepared on a going concern basis, and the accounting policies have been applied consistently throughout the period.

Statement of compliance

The financial statements of the Service have been prepared pursuant to the Public Finance Act 1989, which include the requirement to comply with New Zealand generally accepted accounting practice (NZ GAAP), and Treasury Instructions.

The financial statements have been prepared in accordance with Tier 1PBE accounting standards.

These financial statements comply with PBE accounting standards.

These financial statements are the first financial statements presented in accordance with the new PBE accounting standards.

Standards issued and not yet effective and not early adopted

In May 2013, the External Reporting Board issued a new suite of PBE accounting standards for application by public sector entities for reporting periods beginning on or after 1 July 2014. The Service has applied these standards in preparing the 30 June 2015 financial statements.

In October 2014, the PBE suite of accounting standards was updated to incorporate requirements and guidance for the not for profit sector. These updated standards apply to PBEs with reporting periods beginning on or after 1 April 2015. The Service will apply these updated standards in preparing its 30 June 2016 financial statements. The Service expects there will be minimal or no change in applying these updated accounting standards.

Measurement base

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

Presentation currency and rounding

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

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Changes in accounting policies

There have been no changes in accounting policy.

Restatement of prior year comparatives

Last year’s figures have been restated where required for comparability.

The following significant accounting policies, which materially affect the measurement of financial results and financial position, have been applied consistently to all periods presented in these financial statements.

Significant accounting policies

Revenue

Revenue Crown

Revenue from the Crown is measured based on the Service’s funding entitlement for the reporting period. The funding entitlement is established by Parliament when it passes the Appropriation Acts for the financial year. The amount of revenue recognised takes into account any amendments to appropriations approved in the Appropriation (Supplementary Estimates) Act for the year and certain other unconditional funding adjustments formally approved prior to balance date.

There are no conditions attached to the funding from the Crown. However, the Service can incur expenses only within the scope and limits of its appropriations.

The fair value of Revenue Crown has been determined to be equivalent to the funding entitlement.

Departmental revenue

Departmental revenue is recognised when earned.

Rental revenue

Rental revenue under an operating sublease is recognised as revenue on a straight-line basis over the lease term.

Capital Charge

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

Foreign Currency

Foreign exchange transactions (including those for which forward foreign exchange contracts are held) are translated into New Zealand dollars using the spot exchange rates at the date 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 surplus or deficit.

Leases

Finance Leases

A finance lease is a lease that transfers to the lessee substantially all of the risks and rewards incidental to ownership of an asset, whether or not title is eventually transferred.


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At the commencement of the lease term, the Service recognises finance leases as assets and liabilities in the Statement of Financial Position at the lower of the fair value of the leased item and the present value of the minimum lease payments.

The amount recognised as an asset is depreciated over its useful life. If there is no certainty as to whether the Service will obtain ownership at the end of the lease term, the asset is fully depreciated over the shorter of the lease terms and its useful life.

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.

Lease incentives received are recognised in the surplus or deficit as a reduction of rental expense over the lease term.

Cash and cash equivalents

Cash and cash equivalents includes cash on hand and deposits held at call with banks.

The Service is only permitted to expend its cash and cash equivalents within the scope and limits of its appropriations.

Debtors and other receivables

Debtors and receivables are recorded at their fair value, less any provision for impairment.

A receivable is considered impaired when there is evidence that the Service will not be able to collect the amount due. The amount of the impairment is the difference between the carrying amount of the receivable and the present value of the amounts expected to be collected.

Inventories

Inventories held for distribution or consumption in the provision of services are measured at cost adjusted, when applicable, for any loss of service potential. The Service applies the weighted average cost method.

Inventory held for sale is valued at the lower of cost and net realisable value (using the weighted average cost method).

The amount of any write-down for the loss of service potential or from cost to net realisable value is recognised in the surplus or deficit in the period of the write-down.

Property, plant and equipment

Property, plant, and equipment consists of furniture, plant and equipment, office equipment, computers, motor vehicles, leasehold improvements, and telecommunication equipment.

Property, plant, and equipment acquired through non-exchange transactions is measured at fair value at the date of acquisition.

Property, plant, and equipment is measured at cost, less accumulated depreciation and impairment losses.

All property, plant and equipment costing more than $2,000 excluding GST is capitalised and recorded at historical cost.

61

Additions

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

Work in progress is recognised at cost less impairment and is not depreciated. The total cost of this work is transferred to the relevant asset category on its completion.

In most instances, an item of property, plant and equipment is initially recorded at its cost. Where an asset is acquired through a non-exchange transaction, it is recognised at its fair value as at the date of acquisition.

Disposals

Gains and losses on disposals are determined by comparing the disposal proceeds with the carrying amount of the asset. Gains and losses on disposals are included in the statement of revenue and expense. When a revalued asset is sold, the amount included in the revaluation reserve in respect of the disposed asset is transferred to taxpayers’ funds.

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 Service and the cost of the item can be measured reliably. The costs of day to day servicing of property, plant and equipment are recognised in the statement of revenue and expense as they are incurred.

Depreciation

Depreciation is provided on a straight-line basis on all property, plant, and equipment at rates that will write-off the cost of the assets to their estimated residual values over their useful lives. The useful lives and associated depreciation rates of major classes of property, plant, and equipment have been estimated as follows:

Furniture 3 - 10 years 10% - 33.3%

Plant and equipment 3 - 10 years 10% - 33.3%

Office equipment 3 - 10 years 10% - 33.3%

Computer systems 3 - 7 years 14.3% - 33.3%

Motor vehicles 5 years 20%

Leasehold property 3 - 34 years 2.9% - 33.3%

Telecommunications equipment 3 - 7 years 14.3% - 33.3%

Leasehold improvements are depreciated over the unexpired period of the lease or the estimated remaining useful lives of the improvements, whichever is the shorter.

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

Assets are purchased on behalf of members of Parliament including for their out-of-Parliament offices. The useful life and associated depreciation rates for these assets are aligned to the Parliamentary term or the remainder of the Parliamentary term.


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Intangible assets

Software acquisition and development

Acquired computer software licenses are capitalised based on the costs incurred to acquire and bring to use the specific software.

Costs that are directly associated with the development of software for internal use by the Service are recognised as an intangible asset. Direct costs include the software development, employee costs, and an appropriate portion of relevant overheads. Staff training costs are recognised as an expense when incurred. Costs associated with maintaining computer software are recognised as an expense when incurred. Costs of software updates or upgrades are only capitalised when they increase the usefulness or value of the software.

Amortisation

The carrying value of an intangible asset with a finite life is amortised on a straight-line basis over its 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 surplus or deficit.

The useful lives and associated amortisation rates of major classes of intangible assets have been estimated as follows:

Acquired computer software 3 - 7 years 14.3% - 33.3%

Impairment of property, plant, and equipment and intangible assets

The Service does not hold any cash-generating assets. Assets are considered cash-generating where their primary objective is to generate a commercial return.

Non-cash generating assets

Intangible assets subsequently measured at cost that have an indefinite useful life, or are not yet available for use, are tested annually for impairment.

Property, plant, and equipment and intangible assets that have a finite useful 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.

Value in use is depreciated replacement cost for an asset where the future economic benefits or service potential of the asset are not primarily dependent on the asset’s ability to generate net cash inflows and where the Service would, if deprived of the asset, replace its remaining future economic benefits or service potential.

If an asset’s carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written down to the recoverable amount. The total impairment loss is recognised in the surplus or deficit. The reversal of an impairment loss is recognised in the surplus or deficit.

Creditors and other payables

Creditors and other payables are initially measured at face value.

63

Employee entitlements

Short-term employee entitlements

Employee benefits expected 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, retiring and long service leave entitlements expected to be settled within 12 months, and sick leave.

A liability for sick leave is recognised 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 history of sick leave taken by all employees for the last three years to derive the average amount of accrued sick leave taken over and above the entitlement for the year.

Long-term employee entitlements

Employee benefits that are due to be settled beyond 12 months after the end of the reporting period in which the employee renders the related service, such as long service leave and retiring leave, are calculated using the Treasury guidance. The calculations are based on:

• likely future entitlements accruing to staff, based on years of service, years to entitlement, the likelihood that staff will reach the point of entitlement, and contractual entitlements information; and

• the present value of the estimated future cash flows.

Expected future payments are discounted using market yields on government bonds at balance date with terms to maturity that match, as closely as possible, the estimated future cash outflows for entitlements. The inflation factor is based on the expected long-term increase in remuneration for employees.

Presentation of employee entitlements

Sick leave, annual leave and long service leave expected to be settled within 12 months of balance date are classified as a current liability. All other employee entitlements are classified as a non-current liability.

Superannuation schemes

Defined contribution schemes

Obligations for contributions to the State Sector Retirement Savings Scheme, Kiwi Saver and GSF are accounted for as defined contribution superannuation schemes and are recognised as an expense in the surplus or deficit as incurred.

Defined benefit schemes

The Service belongs to the Government Superannuation Scheme (GSF). GSF is a defined benefit plan. Insufficient information is available to use defined benefit accounting; as it is not possible to determine from the terms of the scheme the extent to which the surplus or deficit will affect future contributions by individual employers, as there is no prescribed basis for allocation. The Service has employees who are members of the Government Superannuation Fund. This is a fully funded Government scheme and as a result no liability is recognised. The scheme is therefore accounted for as a defined contribution scheme.


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Provisions

A provision is recognised for future expenditure of uncertain amount or timing when there is a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are not recognised for net deficits from future operating activities.

Provisions are measured at the present value of the expenditure and are discounted using market yields on government bonds at balance date with the terms to maturity that match, as closely as possible, the estimated timing of the future cash flows. The increase in the provision due to the passage of time is recognised as an interest expense and is included in “finance costs”.

Restructuring

A provision for restructuring is recognised when an approved detailed formal plan for the restructuring has either been announced publicly to those affected, or for which implementation has already commenced.

Onerous contracts

A provision for onerous contracts is recognised when the expected benefits or service potential to be derived from a contract are lower than the unavoidable cost of meeting the obligations under the contract.

The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract.

Taxpayers’ funds

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

Commitments

Commitments are future expenses and liabilities to be incurred on contracts that have been entered into at balance date. Information on non-cancellable lease commitments is reported in the statement of commitments.

Goods and services tax (GST)

The Financial Statements, including appropriation statements, are exclusive of GST, except for Creditors and Debtors, which are GST inclusive. All other statements and notes are GST exclusive.

The amount of GST owing to or from the Inland Revenue Department at balance date, being the difference between Output GST and Input GST, is included in Creditors or Debtors, as appropriate.

Commitments and contingencies are disclosed excluding GST.

Income tax

The Service is a public authority and consequently is exempt from the payment of income tax in terms of the Income Tax Act 2007. Accordingly, no provision for income tax has been made.

Statement of cash allocation policies

The Service 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 costs that cannot be identified in an economically feasible manner with a specific output.

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Direct costs are charged directly to outputs. Indirect costs are charged to outputs based on cost drivers and related activity or usage information. Depreciation and capital charge are charged on the basis of asset utilisation. Personnel costs are charged based on actual time incurred.

Critical accounting estimates and assumptions

In preparing these financial statements, estimates and assumptions have been made concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions 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. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are referred to below:

Useful lives of software

The useful life of software is determined at the time the software is acquired and brought into use and is reviewed at each reporting date for appropriateness. For internally generated software developed by the Service, the life is based on historical experience with similar systems as well as anticipation of future events, which may impact their useful life, such as changes in technology.

Retirement and long service leave

An analysis of the exposure in relation to estimates and uncertainties surrounding retirement and long service leave liabilities is disclosed in Note 10.

Critical judgements in applying accounting policies

Management has not exercised any significant critical judgements in applying accounting policies for the year ended 30 June 2015.

Budget and forecast figures

Basis of the budget and forecast figures

The 2015 budget figures are for the year ended 30 June 2015 and were published in the 2014/15 annual report. They are consistent with the Service’s best estimate financial forecast information submitted to Treasury for the Budget Economic and Fiscal Update (BEFU) for the year ending 2014/15. The 2016 forecast figures are for the year ending 30 June 2016, which are consistent with the best estimate financial forecast information submitted to Treasury for the BEFU for the year ending 30 June 2016.

The forecast financial statements have been prepared as required by the PFA to communicate forecast financial information for accountability purposes.

The budget and forecast figures are unaudited and have been prepared using the accounting policies adopted in preparing these financial statements. The 30 June 2016 forecast figures have been prepared in accordance with PBE FRS 42 Prospective Financial Statements and comply with PBE FRS 42. The forecast financial statements were approved for issue on 1 March 2015. The General Manager is responsible for the forecast financial statements, including the appropriateness of the assumptions underlying them and all other required disclosures.

While the Service regularly updates its forecasts, updated forecast financial statements for the year ending 30 June 2016 will not be published.

The forecast financial figures contained in these financial statements reflect the Service’s purpose and activities and are based on a number of assumptions on what may occur during the 2015/16 year. The forecast figures have been compiled on the basis of existing government policies and Ministerial expectations at the time the Main Estimates were finalised.


66

Significant assumptions used in preparing the forecast financials

The main assumptions, which were adopted as at 1 March 2015, were as follows:

• The Service’s activities and output expectations will remain substantially the same as the previous year focusing on the Government’s priorities.

• Personnel costs were based on 267 full-time equivalent staff, which takes into account staff turnover.

• Operating costs were based on historical experience and other factors that are believed to be reasonable in the circumstances and are the Service’s best estimate of future costs that will be incurred. Remuneration rates are based on current wages and salary costs, adjusted for anticipated remuneration changes.

• Estimated year-end information for 2014/15 was used as the opening position for the 2015/16 forecasts.


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Note 1: Departmental and other revenue

Unaudited

Actual2014$000

Actual2015$000

Main Estimates

2015$000

Supp Estimates

2015$000

Forecast2016$000

2,657 ICT services including network support

2,958 2,687 2,687 2,564

1,115 Services to the Office of the Clerk

1,168 542 1,142 1,867

952 Rental revenue 998 581 581 888

130 Parliament shop trading 148 100 100 100

107 Services to other agencies 68 50 50 50

88 Other 145 41 930 610

5,049 Total departmental and other

revenue 5,485 4,001 5,490 6,079


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Note 3: Capital charge

The Service pays a capital charge to the Crown on taxpayers’ funds as at 30 June and 31 December each year. The capital charge rate for the year ended 30 June 2015 was 8 percent (2014: 8 percent).

Note 2: Personnel costs

Unaudited


Actual2015$000

Main Estimates

2015$000

Supp Estimates

2015$000

Forecast2016$000

36,677 Salaries and wages 28,345 20,659 27,033 20,660

359 * Employer contribution to defined contribution plans

286 373 286 225

197 Increase/(Decrease) in employee entitlements

19 (1,049) 335 1,093 12

61 Other 111 150 110 76

37,294 Total personnel costs 27,693 21,517 28,522 20,973

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

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Note 4: Other Expenses

Unaudited

Actual2014$000

Actual2015$000

Main Estimates

2015$000

Supp Estimates

2015$000

Forecast2016$000

105 Fees to Auditor for audit of financial statements

108 105 108 108

- Impairment of intangible assets (note 8)

11 - - -

5,284 Operating lease rentals 5,314 5,312 5,301 5,306

1,649 Consultancy 1,358 2,174 1,400 750

5,416 Information technology costs 7,152 6,307 7,336 7,830

3,997 Maintenance 4,122 4,137 4,327 4,128

3,894 Premises costs & utilities 3,823 3,901 3,898 3,837

5,995 Other expenses 5,830 7,577 5,487 4,601

26,340 Total other expenses 27,718 29,513 27,857 26,560


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Note 5: Debtors and other receivables

Unaudited

Actual2014$000

Actual2015$000

Main Estimates

2015$000

Supp Estimates

2015$000

Forecast2016$000

8,030 Debtor Crown 9,089 3,858 8,030 8,030

443 Due from Offices of Parliament 284 - - -

212 Other debtors 297 425 350 300

8,685 Total debtors and receivables 9,670 4,283 8,380 8,330

Debtor Crown originates from non-exchange transactions; all the others originate from exchange transactions.

Due from Offices of Parliament incorporates payments made on behalf of Parliamentary Service Crown activity, the Parliamentary Counsel Office and the Office of the Clerk.

The Service had not yet been reimbursed for these payments at balance date. The carrying value of debtors and other receivables approximates their fair value. The aging profile of receivables at year end is detailed below:

Actual2014$000

Actual2015$000

8,484 Not past due 9,670

182 Past due 1-30 days -

19 Past due over 30 days -

8,685 Total 9,670

71

Inventory consists of items held for resale in the Parliamentary Shop and some computer equipment. Inventory is carried at the lower of cost or net realisable value. The Parliamentary Service applies a weighted average cost formula. Inventory is tested for impairment annually.

The write-down of inventories amounted to $2k (2014: nil). No inventories are pledged as security for liabilities or

subject to retention of title clauses.

Actual2014$000

Actual2015$000

Held for distribution

4 Inventories held for use in the provision of goods and services

104

Commercial activities

40 Shop stock held for sale 38

44 Total inventories 142

Note 6: Inventory


72

Note 7: Property, plant and equipment

Cost or valuationall units

$000Furniture

$000Computers

$000

Office Equipment

$000

Leasehold Property

Improvements$000

Motor Vehicles

$000

Plant & Equipment

$000

Teleco Equipment

$000

Work in Progress

$000Total$000

Balance at 1 July 2013

3,444 14,405 1,516 20,409 94 4,568 1,509 1,307 47,252

Additions * - 399 35 20 50 6 - 542 1,052

Transfers from work in progress

- 1,194 - 62 - - - (1,256) -

Adjustments 1 - - - (1) - 1 3 4

Disposals - - (2) (4) - - - - (6)

Write Off - (4,595) - - - - (768) - (5,363)

Balance at 30 June 2014

3,445 11,403 1,549 20,487 143 4,574 742 596 42,939


3,445 11,403 1,549 20,487 143 4,574 742 596 42,939

Additions 5 29 24 191 77 12 17 1,023 1,378

Transfers from work in progress

142 688 3 161 - 407 - (1,401) -

Adjustments - 2 - - - - - (2) -

Disposals (26) (100) (90) (56) (94) (11) - - (377)

Write Off - - - - - - - - -


3,566 12,022 1,486 20,783 126 4,982 759 216 43,940

Accumulated depreciation and impairment losses


(3,127) (11,696) (1,304) (10,170) (14) (3,844) (1,465) - (31,620)

Depreciation expense

(146) (1,866) (96) (1,249) (23) (520) (16) - (3,916)

Adjustments (1) (1) 1 - (2) - (1) - (4)

Eliminate on disposal

- - - 4 - 2 - - 6

Write Off - 4,595 - - - - 768 - 5,363


(3,274) (8,968) (1,399) (11,415) (39) (4,362) (714) - (30,171)


(3,274) (8,968) (1,399) (11,415) (39) (4,362) (714) - (30,171)

Depreciation expense

(111) (1,511) (69) (1,241) (26) (278) (17) - (3,253)

Adjustments - - - - - - - - -

Eliminate on disposal

26 80 86 70 48 11 - - 321

Write Off - - - - - - - - -


(3,359) (10,399) (1,382) (12,586) (17) (4,629) (731) - (33,103)

Carrying amounts

At 30 June 2013 317 3,956 217 10,293 79 725 45 - 15,632

At 30 June 2014 and 1 July 2014

309 2,887 150 9,078 104 212 28 - 12,768

At 30 June 2015 295 1,631 104 8,317 109 353 28 - 10,837

*The additions in computers includes Office of the Clerk computer hardware transferred to Parliamentary Service, at net book values ($396k) in 2014.

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Note 8: Intangibles

all units $000

Acquired Software

$000

Internally generated

software$000

Work in Progress

$000Total$000

Cost or valuation

Balance at 1 July 2013 5,013 217 2,099 7,329

Additions 498 175 2,642 3,315

Transfers from work in progress 3,400 - (3,400) -

Disposals - - - -

Balance at 30 June 2014 8,911 392 1,341 10,644

Balance at 1 July 2014 8,911 392 1,341 10,644

Additions 1,197 490 1,798 3,485

Transfers from work in progress 704 607 (1,311) -

Disposals (127) - - (127)

Impairment (11) - - (11)

Balance at 30 June 2015 10,674 1,489 1,828 13,991

Accumulated amortisation and impairment losses

Balance at 1 July 2013 (3,633) (34) - (3,667)

Amortisation expense (1,162) (107) - (1,269)

Eliminate on disposal - - - -

Balance at 30 June 2014 (4,795) (141) - (4,936)

Balance at 1 July 2014 (4,795) (141) - (4,936)

Amortisation expense (1,581) (262) - (1,843)

Eliminate on disposal 77 - - 77

Balance at 30 June 2015 (6,299) (403) - (6,702)

Carrying amounts

At 30 June 2013 1,380 183 2,099 3,662

At 30 June 2014 and 1 July 2014 4,116 251 1,341 5,708

At 30 June 2015 4,375 1,086 1,828 7,289

The impairment of intangible assets of $11k (2014: nil) was due to the obsolescence of the items concerned.


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Note 9: Creditors and other payables

Unaudited

Actual2014$000

Creditors and other payables under exchange transactions

Actual2015$000

Main Estimates

2015$000

Supp Estimates

2015$000

Forecast2016$000

1,362 Trade creditors 469 3,190 3,500 3,500

2,185 Accrued expenses 2,440 - - -

3,547 Total under exchange transactions

2,909 3,190 3,500 3,500

Creditors and other payables under exchange transactions

- Accrued FBT expense 1 - - -

259 GST payable (receivable) 282 3 500 500

259 Total under non-exchange transactions

283 3 500 500

3,806Total creditors and other payables

3,192 3,193 4,000 4,000

Creditors and other payables are non-interest bearing and are normally settled on 30-day terms. Therefore, the carrying value of creditors and other payables approximates their fair value. All creditors originate from exchange transactions with the exception of taxes collected and held pending payment to the Inland Revenue Department on due date.

75

Note 10: Employee entitlements

Unaudited

Actual2014$000

Actual2015$000

Main Estimates

2015$000

Supp Estimates

2015$000

Forecast2016$000

Current liabilities

296 Retirement and long service leave

352 690 452 555

2,263 Annual leave 1,069 2,070 1,358 1,665

9 Sick leave 20 - - -

2,568 Total current portion 1,441 2,760 1,810 2,220

Non-current liabilities

389 Retirement and long service leave

467 - 400 420

389 Total non-current portion 467 - 400 420

2,957 Total employee entitlements 1,908 2,760 2,210 2,640

Employee benefits

Treasury guidance was used to estimate the value of long service leave, retirement leave and sick leave as at 30 June 2015. The major economic assumptions adopted in the valuation process for long service and retirement leave were:

• Salary increase rate: 1.4 – 2.1% per annum (2014: 1.5 - 3.5%)

• Discount Rate: 2.93 – 4.39% per annum (2014: 3.7 - 5.5%)

For sick leave, the methodology was calculated according to Treasury guidance and assumes that sick leave is a short-term compensated absence, as defined in PBE IPSAS 25.


76

Note 11: Return of operating surplus

Note 12: Taxpayers’ funds

Unaudited

Actual2014$000

Actual2015$000

Main Estimates

2015$000

Supp Estimates

2015$000

Forecast2016$000

923 Net surplus 1,060 - - -

923 Net surplus before other expenses

1,060 - - -

923 Total return of operating surplus

1,060 - - -

The return of operating surplus to the Crown is required to be paid by 31 October 2015.


Actual2015$000

25,760 Balance at 1 July 2014 26,156

923 Surplus for year 1,060

Owner Transactions

396 Capital injection -

(923) Return of operating surplus to the Crown

11 (1,060)

26,156 Balance at 30 June 2015 26,156

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Note 13: Reconciliation of net cash flows from operating activities

Unaudited


Actual2015$000

Main Estimates

2015$000

Supp Estimates

2015$000

Forecast2016$000

923 Net surplusAdd/(less) non-cash items

1,060 - - -

5,185 Depreciation and amortisation 5,096 4,500 5,231 5,551

(4) Inc/(Dec) in non-current employee entitlements

78 (389) 11 -

263 Inc/(Dec) in GST Payable 23 (263) 241 -

5,444 Total non-cash items 5,197 3,848 5,483 5,551

Add/(less)movements in deferrals and accruals

(2,322) (Inc)/Dec in debtors (868) 894 305 50

(Inc)/Dec in prepayments 34 (81) 26 -

(4) (Inc)/Dec in inventory (98) (3) (1) -

(482) Inc/(Dec) in creditors and other payables

(637) (350) (47) -

201 Inc/(Dec) in provision for current employee entitlements

(1,127) 192 (758) 430

(2,607) Total net movement in working capital items

(2,696) 652 (475) 480

Add/(Less) investing activity items

- Loss/(Gain) on disposal of property, plant and equipment and intangibles

44 - - -

3,760 Net cash flow from operating activities

3,605 4,500 5,008 6,031

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



78

Note 14: Related party transactions

The Service is a wholly owned entity of the Crown.

Related party disclosures have not been made for transactions with related parties that are within a normal supplier or client/recipient relationship on terms and conditions no more or less favourable than those that it is reasonable to expect the Service would have adopted in dealing with the party at arm’s length in the same circumstances. Further, transactions with other government agencies (for example, Government departments and Crown entities) are not disclosed as related party transactions when they are consistent with the normal operating arrangements between government agencies and undertaken on the normal terms and conditions for

such transactions.

Significant transactions with government-related entities

The Service has received funding from the Crown of $58m (2014: $67m) to provide services to the public, House of Representatives and support services and/or accommodation to other government agencies, as part of a

Service Level Agreement, for the year ended 30 June 2015. These agencies are:

• Office of the Clerk of the House of Representatives

• Parliamentary Counsel Office

Key management personnel remuneration

Actual2014$000

Actual2015$000

Leadership Team, including General Manager

1,340 Remuneration 1,303

There are no other employee benefits.

Key management personnel include the General Manager and five members of the Senior Management Team (6 FTE’s) (2014: 6).

79

Note 15: Events after balance date

Note 16: Adjustments on transition to the new PBE Accounting standards

Note 17: Financial instruments risks

There were no significant events after balance date (2014: nil).

The Service has made no changes to its comparative year financial statements for the year ended 30 June 2014 due to reclassification adjustments and adjustments arising from transition to the new PBE accounting standards.

The Service is party to financial instrument arrangements as part of its everyday operations. These include instruments such as bank balances, accounts receivable, and accounts payable. The fair value of the Service’s financial instruments is the same as the carrying value.

The Service does not have any gains or losses on its financial instruments and no impairments have been recognised to date.

All financial assets and liabilities are non-derivative in form and function and are neither available for sale nor held to maturity.

The fair value of the financial instruments is deemed not materially different from valuation at amortised cost. As a result, the carrying value of the instruments is at fair value.

Credit risk

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

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

The maximum exposure from trade debtors is the value of the non-Government debtors, i.e. $297k. Default is considered by management to be unlikely and the probable exposure has been determined as negligible. There were no changes in receivables or payables during the year that can be attributed to credit risk.

The Service is only permitted to deposit funds with Westpac Banking Corporation (Westpac), a registered bank, and enter into foreign exchange forward contracts with the New Zealand Debt Management Office (NZDMO).


80

The Service holds cash with Westpac. Westpac is part of the Crown Retail Deposit Guarantee Scheme and so all deposits up to $1 million held with Westpac are guaranteed by the Crown.

The Service does not require any collateral or security to support financial instruments with financial institutions that it deals with, or with the NZDMO, as these entities have high credit ratings. For its other financial instruments, the Service does not have significant concentrations of credit risk. The Service is not exposed to any other concentrations of credit risk.

Credit facilities

The Service does not have bank overdraft facilities as at 30 June 2015. The Service has a letter of credit with Westpac for $10,000 for the purpose of staff cashing pay and expense reimbursement cheques.

Currency risk

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

The Service has no significant exposure to currency rate risk on its financial instruments.

Interest rate risk

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

The Service has no interest bearing financial instruments and, accordingly, has no exposure to interest rate risk.

Liquidity risk

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

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

The Service considers that it does not have a significant liquidity risk as it ensures it has adequate working capital coverage at all times.

Exposure to risk

The Service is not aware of any exposure to risk regarding financial instruments that would have a significant impact on operations.

81

Note 18: Capital management

Note 19: Explanation of major variances against budget

The Service’s capital is its equity (or taxpayers’ funds), which comprise general funds. Equity is represented by net assets.

The Service manages its revenues, expenses, assets, liabilities, and general financial dealings prudently. The Service’s equity is largely managed as a by-product of managing revenue, expenses, assets, liabilities and compliance with the government budget processes, the Public Finance Act 1989 and Treasury Instructions.

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

Statement of comprehensive revenue and expense

The original operating appropriation of $58.041m was revised to $63.962m due to:

• Expense transfers from 2013/14 to 2014/15 – $0.640m increase

• Retention of underspends from 2013/14 to 2014/15 – $0.142m increase

• Additional funding for 2014 general election - $1.200m increase

• Additional funding for transition costs from the 50th Parliament to 51st Parliament - $2.600m increase

• Additional revenue for ICT services to other agencies - $1.275m increase

• Additional departmental revenue and other revenue - $0.064m increase

Personnel costs are lower due to transfer of members’ support staff appropriations from departmental to non-departmental after 2014 general election. This included their leave entitlement.

Operating costs are slightly lower due to projects commenced, but not completed, resulting from focusing on 2014 election related activities.

Depreciation for property, plant and equipment has reduced due to assets being fully depreciated, especially for party and members’ assets, which were fully depreciated at election time. The life of party and member assets is the Parliament term. Amortisation of intangible assets has increased mainly due to the timing implementation of software.

Statement of financial position

Cash and cash equivalents are less than budgeted but debtors and other receivables (mainly Crown funding not drawn-down) are more than budgeted. This is due to active cash management and improved cash forecasting.

Non-current assets are slightly lower due to less expenditure on capital projects.


82

Statements of expenses and capital expenditure

The following statements report information about the expenses and capital expenditure incurred against each appropriation administered by the Office for the year ended 30 June 2015.

83

Statement of departmental expenses and capital expenditure against appropriations

Unaudited

Actual2014$000

Figures are GST inclusive where applicable

Actual2015$000

Main Estimates

2015$000

Supp Estimates

2015$000

Location of end-of-year

Performance Information

Departmental output expenses

19,021 Services to members 6,831 4,093 6,835 *

- Support services to the Speaker 433 425 435 *

19,021 Total departmental output expenses

7,264 4,518 7,270

Multi Category Appropriations

13,054 Parliamentary information, communications & technology services

15,093 12,603 14,628 *

26,434 Building & operations management

26,799 27,727 28,137 *

4,537 Parliamentary library 4,601 4,738 4,888 *

8,231 Personnel, accounting and advisory services to members and other parliamentary agencies

9,140 8,455 9,039 *

52,256 Total multi category appropriation – Operations, information and advisory services

55,633 53,523 56,692

71,277 Total appropriations for output expenses

62,897 58,041 63,962

Departmental capital expenditure

3,971 Parliamentary Service -Permanent Legislative Authority

4,863 4,500 5,007 *

* Performance reporting on these appropriations is contained in this Annual Report.



84

Statement of departmental expenses and capital expenditure incurred without appropriation or other authority, or in excess of an existing appropriation or other authority

Statement of departmental capital injections without, or in excess of, authority


There was no Departmental unappropriated expenditure and capital expenditure in 2015 (2014: nil).


The Department did not receive any capital injections during the year without, or in excess of authority (2014: nil).

85

Financial Statements Parliamentary Service Crown



86

Schedule of non-departmental revenue


Unaudited

Actual2014$000

Actual2015$000

Main Estimates

2015$000

Supp Estimates

2015$000

203 Revenue 190 - -

203 Total non-departmental revenue 190 - -

Non-departmental statements and schedules


87

Schedule of non-departmental expenses


Unaudited

Actual2014$000

Actual2015$000

Main Estimates

2015$000

Supp Estimates

2015$000

Expenditure Other expenses incurred by the Crown

39,507 Annual 24,103 26,308 27,132

18,622 Other 44,564 51,384 54,546

5,361 Purchases and development of capital assets by the Crown

5,562 9,000 6,168

3,276 GST expensed 2,896 - -

66,766 Total non-departmental expenses 77,125 86,692 87,846

For a full understanding of the Crown’s financial position and the results of its operations for the year, refer to the consolidated Financial Statements of the Government for the year ended 30 June 2015.

The notes to the accounts form part of and are to read in conjunction with these financial statements


88

Schedule of non-departmental assets

As at 30 June 2015

Unaudited


Actual2015$000

Main Estimates

2015$000

Supp Estimates

2015$000

Current Assets

10,384 Cash and cash equivalents 1 16,696 33,815 17,868

9 Debtors 1, 2 9 92 15

21 Prepayments 2 172 91 50

10,414 Total current assets 16,877 33,998 17,933

Non-current assets

439,650 Property, plant and equipment 3 433,206 433,847 431,817

450,064 Total non-departmental assets 450,083 467,845 449,750

89

Schedule of non-departmental liabilities and revaluation reserves

As at 30 June 2015

Unaudited


Actual2015$000

Main Estimates

2015$000

Supp Estimates

2015$000

Liabilities

Current liabilities

4,444 Creditors 4 2,744 3,600 4,115

335 Employee entitlements 800 - -

4,779 Total current liabilities 3,544 3,600 4,115

Non current liabilities

- Employee entitlements 17 - -

- Total non current liabilities 17 - -

Revaluation reserve

63,000 Land revaluation reserve 5 63,000 63,000 63,000

163,375 Building revaluation reserve 5 163,375 163,375 163,375

7,366 Antique and art revaluation reserve 5 7,366 8,241 7,755

22,908 Library collection revaluation reserve 5 22,519 22,519 22,519

256,649 Total revaluation reserve 256,260 257,135 256,649

261,428 Total non-departmental liabilities and revaluation reserve

259,821 260,735 260,764



90

Statement of non-departmental commitments


There are no non-departmental operating commitments (2014: nil).

Capital commitments

Capital commitments are the aggregate amount of capital expenditure contracted for the acquisition of property, plant and equipment and intangible assets that have not been paid for or not recognised as a liability at balance

date.

Actual2014$000

Actual2015$000

-Capital commitments Buildings 4,383

- Total commitments 4,383

91

Statement of non-departmental contingent liabilities and contingent assets


Unquantified contingent liabilities

The Service on behalf of the Crown in 2015 has legal proceedings and disputes for which the outcome is undetermined, as was the case in 2014.

Quantifiable contingent liabilities

Actual2014$000

Actual2015$000

176Contingent liability Members’ Superannuation 287

176 Total contingent liability 287

Contingent assets

The Service on behalf of the Crown has no contingent assets (2014: nil).



92

Statement of accounting policies

Reporting entity

These non-department schedules and statements present financial information on public funds managed by the Parliamentary Service on behalf of the Crown. Further details of the department’s management of these Crown assets and liabilities are provided in the output performance sections of this report. These non-department balances are consolidated into the Financial Statements of the Government for the year ended 30 June 2015. For a full understanding of the Crown’s financial position, results of operations and cash flows for the year, refer to the Financial Statements of the Government.

Basis of preparation

The financial statements have been prepared on a historical cost basis, modified by the revaluation of certain property, plant and equipment.

The non-departmental schedules and statements have been prepared in accordance with the accounting policies of the Financial Statements of the Government, Treasury Instructions, and Treasury Circulars.

Measurement and recognition rules applied in the preparation of these non-departmental schedules and statements are consistent with New Zealand generally accepted accounting practice (Tier 1 Public Sector Public Benefit Entity Accounting Standards) as appropriate for public benefit entities.

These non-departmental statements and schedules are the first prepared in accordance with the new PBE accounting standards. There have been no other changes in accounting policies during the financial year.

Significant accounting policies

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 schedule of non-departmental income or expenses.

Goods and services tax

All items in the financial statements, including appropriation statements, are stated exclusive of Goods and Services tax (GST), except for receivables and payables, which are stated on a GST-inclusive basis. In accordance with Treasury Instructions, GST is returned on revenue received on behalf of the Crown, where applicable. However, an input tax deduction is not claimed on non-departmental expenditure. Instead, the amount of GST applicable to non-departmental expenditure is recognised as a separate expense and eliminated against GST revenue on consolidation of the Financial Statements of the Government.

93

Commitments

Commitments are future expenses and liabilities to be incurred on contracts that have been entered into at balance date. Information on non-cancellable capital and lease commitments are reported in the statement of commitments. Cancellable capital commitments that have penalty or exit costs explicit in the agreement on exercising that option to cancel are reported in the statement of commitments at the lower of the remaining contractual commitment and the value of those penalty or exit costs (i.e. the minimum future payments).

Contingent liabilities

Contingent liabilities are disclosed at the point at which the contingency is evident.

Critical accounting estimates

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are referred to below:

Budget figures

The 2015 budget figures are for the year ending 30 June 2015, which are consistent with the best estimate financial information submitted to Treasury for the BEFU (Budget and Economic Fiscal Update) for the year ending 2014/15. The Statement of Responsibility for the BEFU forecast was signed on 15 April 2015 and based on PBE standards.

Debtors

Debtors are initially recorded at fair value, and are subsequently measured at amortised cost using the effective method less any provision for impairment. A provision for impairment of debtors is established when there is objective evidence that the Service will not be able to collect all amounts due according to the original terms of the debtors. 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 asset is reduced through the use of an allowance account, and the amount of the loss is recognised in the schedule of non-departmental expenses. When a debtor is uncollectible, it is written off against the allowance account for debtors. Overdue debtors that are renegotiated are reclassified as current (i.e. not past due).

Significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy, and default in payments are considered indicators that the debtor is impaired.

Employee entitlements

Short-term employee entitlements

Employee entitlements that are due to be settled within 12 months after the end of the period in which the employee renders the related service are measured based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned but not yet taken at balance date, long service leave and retirement gratuities expected to be settled within 12 months, and sick leave.

A liability for sick leave is recognised 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 it will be used by staff to cover those future absences.

A liability and an expense are recognised for bonuses where the Ministry has a contractual obligation or where there is a past practice that has created a constructive obligation and a reliable estimate of the obligation can be made.


94

Long-term employee entitlements

Employee entitlements that are due to be settled beyond 12 months after the end of the reporting period in which the employee renders the related service, such as long service leave and retirement gratuities, are calculated on an actuarial basis. The calculations are based on:

• likely future entitlements accruing to staff, based on years of service, years to entitlement, the likelihood that staff will reach the point of entitlement, and contractual entitlements information; and

• the present value of the estimated future cash flows.

Presentation of employee entitlements

Sick leave, annual leave, vested long service leave, and non-vested long service leave and retirement gratuities expected to be settled within 12 months of balance date are classified as a current liability. All other employee entitlements are classified as a non-current liability.

Property, plant and equipment

Property, plant and equipment consists of the following classes of assets: Land, buildings, furniture, plant and equipment, Antiques and art, and library.

The initial cost of property, plant and equipment is the value of the consideration given to acquire or create the asset and any directly attributable costs of bringing the asset to working condition for its intended use.

All property, plant and equipment costing more than $2,000 are capitalised and recorded at historical cost with the exception of Crown furniture where re-statement of costs has been made to items of $5,000 or greater only.

Capital work in progress

Capital work in progress is not depreciated. The total cost of this work is transferred to the relevant asset category on its completion.

Depreciation

Depreciation of property, plant and equipment is provided on a straight-line basis to allocate the cost of assets, less any estimated residual value, over their useful lives.

The estimated economic useful lives and associated depreciation rates of major classes of assets are:

Furniture 15 years

Antiques and art collection Not depreciated

Buildings 15 - 100 years

Fit-out 5 - 40 years

Land Not depreciated

Library collection – reference 10 - 50 years

Library collection – heritage Not depreciated

95

Valuation

Revaluations are carried out for a number of classes of property, plant and equipment to reflect the service potential or economic benefit obtained through control of the asset. Revaluation is based on the fair value of the asset with changes reported by class of asset.

Classes of property, plant and equipment that are revalued are revalued at least every five years or whenever the carrying amount differs materially to fair value. Unrealised gains and losses arising from changes in the value of property, plant and equipment are recognised as at balance date and are debited or credited to the Revaluation Reserve.

Accumulated depreciation at revaluation date is eliminated against the gross carrying amount so that the carrying amount after revaluation equals the revalued amount.

Land and buildings are valued on a three-yearly basis by independent registered valuers to ensure that the carrying amounts do not differ materially from the assets’ fair values. Land is valued at current market value, with reference to its highest and best use, subject to its current zoning and Heritage designation. Buildings are valued at depreciated replacement cost less allowance for physical deterioration, optimisation and relevant surplus capacity.

The carrying values of revalued assets are assessed annually to ensure that they do not differ materially from the assets’ fair values. If there is a material difference, then the off-cycle asset classes are revalued. Additions between revaluations are recorded at cost.

The Service accounts for revaluations of property, plant, and equipment on a class-of-asset basis.

The antique and art collections are valued at fair market value on a three-yearly basis by independent registered valuers. The last valuation was undertaken as at 30 June 2015. The guidelines assign a standard unit price to books, which are used for the valuation of the collection.

Library reference collections are held at historic standard unit cost and depreciated over the assigned useful economic life. The Service has begun a review of these collections which is expected to be completed by the end of 2015.

Additions

In most instances, an item of property, plant and equipment is initially recorded at its cost. Where an asset is acquired through a non-exchange transaction, it is recognised at its fair value as at the date of acquisition.

Library heritage collection - Additions between valuations are recorded in their standard unit price as determined at the last valuation. Library reference collection – Additions to the reference collection are recorded at the standard unit price.

Disposals

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposal are included in the schedule of revenue and expenses. When revalued assets are sold, the amounts included in asset revaluation reserves in respect of those assets are transferred to the schedule of non-Department liabilities and revaluation reserve.

Impairment of property, plant, and equipment

Property, plant and equipment that have a finite useful 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.


96

Value in use is depreciated replacement cost for an asset where the future economic benefits or service potential of the asset are not primarily dependent on the asset’s ability to generate net cash inflows and where the Service would, if deprived of the asset, replace its remaining future economic benefits or service potential.

If an asset’s carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written down to the recoverable amount. For revalued assets, the impairment loss is recognised against the revaluation reserve for that class of asset. Where that results in a debit balance in the revaluation reserve, the balance is recognised in the surplus or deficit.

For assets not carried at a revalued amount, the total impairment loss is recognised in the surplus or deficit.

The reversal of an impairment loss on a revalued asset is credited to the revaluation reserve. However, to the extent that an impairment loss for that class of asset was previously recognised in the surplus or deficit, a reversal of the impairment loss is also recognised in the surplus or deficit.

For assets not carried at a revalued amount, the reversal of an impairment loss is recognised in the surplus or deficit.

97

Note 1: Financial instruments


Actual2014$000

Actual2015$000

10,384 Cash and debtors Cash and cash equivalents 16,696

9 Debtors 9

10,393 Total Cash and debtors 16,705

The Crown does not have any gains or losses on its financial instruments and no impairments have been recognised to date. The fair value of the financial instruments is deemed not materially different from valuation at amortised cost. As a result, the carrying value of the instruments is at fair value.

Financial Instrument Risks

The Service is party to financial instrument arrangements as part of its everyday operations. These include instruments such as bank balances, investments, accounts receivable and accounts payable. The fair value of the Service’s financial instruments is the same as the carrying value.

The Service does not have any gains or losses on its financial instruments and no impairments have been recognised to date. All financial assets and liabilities are non-derivative in form and function and are neither available for sale nor held to maturity. The fair value of the financial instruments is deemed not materially different from valuation at amortised cost. As a result the carrying value of the instruments is at fair value.

Credit risk

Credit risk is the risk that a third party will default on its obligations to the Service, causing the Service to incur a loss. In the normal course of its business, the Service’s credit risk arises from debtors. The maximum exposure from trade debtors is the value of the non-Government debtors, ie, $nil. Default is considered by management to be unlikely and the probable exposure has been determined as negligible. There were no changes in receivables or payables during the year that can be attributed to credit risk.

The Service is permitted to deposit funds only with Westpac, a registered bank. The Service does not require any collateral or security to support financial instruments with financial institutions that it deals with, as this entity has a high credit ratings. For its other financial instruments, the Service does not have significant concentrations of credit risk.

The Service is not exposed to any other concentrations of risk.


98

Credit facilities

The Service does not have bank overdraft facilities as at 30 June 2015.

Currency risk

The Service has no significant exposure to currency rate risk on its financial instruments. Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

Interest rate risk

Interest rate risk is the risk that the fair value of a financial instrument will fluctuate, or the cash flows from a financial instrument will fluctuate, due to changes in market interest rates. The Service has no interest bearing financial instruments and, accordingly, has no exposure to interest rate risk.

Liquidity risk

Liquidity risk is the risk that the Service will encounter difficulty raising liquid funds to meet commitments as they fall due. In meeting its liquidity requirements, the Service closely monitors its forecast cash requirements with expected cash drawdowns from the NZDMO. The Service maintains a target level of available cash to meet liquidity requirements. The Service considers that it does not have a significant liquidity risk as it ensures it has adequate working capital coverage at all times.

Exposure to risk

The Service is not aware of any exposure to risk regarding financial instruments that would have a significant impact on operations.

99

Note 2: Debtors, Other Receivables and Prepayments

Actual2014$000

Actual2015$000

9Goods & services debtorsCurrent 9

9 Total debtors – exchange 9

21 Prepayments 172

30 Total 181


100

Note 3: Property plant and equipment

Cost or valuationall units $000

Land$000

Buildings$000

Furniture$000

Plant & Equipment

$000

Antiques and art

collection$000

Library collection

$000

Work in Progress

$000Total$000

Balance at 1 July 2013 100,000 317,006 20,920 407 12,006 36,793 1,510 488,642

Additions – other - 8 1 22 - - 5,126 5,157

Additions – Artworks & Library - - - - 20 184 - 204

Transfers from work in progress - 4,144 9 1,470 - - (5,623) -

Adjustments - - - - - - - -

Artworks revaluation - - - - 281 - - 281

Disposals - - - - - - - -

Write Off - - (7,404) - - (7,291) - (14,695)

Balance at 30 June 2014 100,000 321,158 13,526 1,899 12,307 29,686 1,013 479,589

Balance at 1 July 2014 100,000 321,158 13,526 1,899 12,307 29,686 1,013 479,589

Additions - other - - - - - - 5,561 5,561

Additions - Artworks & Library - - - - 15 158 - 173

Transfers from work in progress - 2,029 104 520 - - (2,653) -

Adjustments - 2 - - - - - 2

Artworks revaluation - - - - - - - -

Disposals - - (20) - (570) - (590)

Write Off - - - - - - - -

Balance at 30 June 2015 100,000 323,189 13,610 2,419 12,322 29,274 3,921 484,735

Accumulated depreciation and impairment losses

Balance at 1 July 2013 - - (20,901) (3) - (21,275) - (42,179)

Depreciation expense - (10,902) - (79) - (709) - (11,690)

Eliminated on revaluation - - - - - - - -

Eliminate on disposal - - - - - - - -

Write Off - - 7,404 - - 6,526 - 13,930

Impairment losses - - - - - - - -

Balance at 30 June 2014 - (10,902) (13,497) (82) - (15,458) - (39,939)

Balance at 1 July 2014 - (10,902) (13,497) (82) - (15,458) - (39,939)

Depreciation expense - (10,945) (5) (186) - (656) - (11,792)

Adjustments - 2 - - - - - 2

Eliminate on revaluation - - - - - - - -

Eliminated on disposal - - 20 - - 180 - 200

Write Off - - - - - - - -

Impairment losses - - - - - - - -

Balance at 30 June 2015 - (21,845) (13,482) (268) - (15,934) - (51,529)

Carrying amounts

At 30 June 2013 100,000 318,000 28 911 12,006 15,518 - 446,463

At 30 June 2014 100,000 311,170 29 1,916 12,307 14,228 - 439,650

At 30 June 2015 100,000 305,216 128 2,200 12,322 13,340 - 433,206

The write down of $7.404m in Furniture in 2014, relates to Crown Furniture items acquired prior to 1996 which have been restated in the asset register. These items had a cost value of $5,000 or less and a net book value of $0. The disposal of $7.291m of Library collections in 2014 and a further $0.570m in 2015 is result of the Library collections review which involves identifying material that is no longer useful. The review commenced in 2014 and is expected to be completed in 2015.

101

Note 4: Creditors

Actual2014$000

Actual2015$000

3,382

Creditors under exchange transactionsCreditors 1,815

1,062 Accrued expenses 929

4,444 Total creditors – exchange 2,744


102

Note 5: Assets held for sale and impairment

The Crown does not have any items of property, plant and equipment classified as held for sale or impairment.

There are no restrictions on title and no assets pledged as security for liabilities.

Revalued assets – land and buildings

Land and buildings were valued as at 30 June 2013 by Registered Valuer, Darroch Limited.

The asset valuation was completed in accordance with the following standards:

The New Zealand International Accounting Standard 16: Property, Plant and Equipment (NZ IAS 16)

The New Zealand Property Institute Valuation Standard 3 - Valuations for Financial Statements.

The land has been assessed at market value in its highest and best use, subject to its current zoning and Heritage designation. In assessing the market value, land sales within the general area have been considered as a starting point. The parliamentary site comprises a large land area, and hence adjustments have been made for location and size.

The basis for the fair value assessment for the buildings is depreciated replacement cost less allowance for physical deterioration, optimisation and relevant surplus capacity, as New Zealand International Accounting Standard (NZIAS) 16 requires this for specialised assets. The buildings are considered specialised assets due to their size and scale and the absence of any directly comparable sales of similar properties as going concerns.

Antique and art collections

Antique and art collections were assessed at fair value as at 30 June 2014 by Dunbar Sloane Limited.

Library

Library heritage collections were valued as at 30 June 2014 by Parliamentary Service library staff. The valuation was carried out in accordance with the guidelines provided by the Library and Information Association of New Zealand Aotearoa and the National Library of New Zealand.

The additions in library collections as at 30 June 2015 were valued at cost. The next revaluation of the library collection is expected to be in the 2015-16 year, after the present review has been completed.

Over the 2013-2015 periods, a review of library collections is being undertaken. The collections review includes identifying material that is no longer useful. Collections haven’t been comprehensively reviewed since the 1990s and the Library needs to re-evaluate its collections to ensure they support the work of members of Parliament, by being relevant, accessible and manageable. Reviewing library collections is normal asset management practice. Library staff will endeavour to find suitable locations for disposals including the National Library and other libraries. This includes rare or unique material of a national interest, which the Parliamentary Library is not equipped to preserve or securely store. Some items may be considered for sale as per the Service’s Asset Management Policy.

103

Note 6: Related party transactions

Note 7: Post-balance date events

Related party disclosures have not been made for transactions with related parties that are within a normal supplier or client/recipient relationship on terms and condition no more or less favourable than those that it is reasonable to expect the Service would have adopted in dealing with the party at arm’s length in the same circumstances. Further, transactions with other government agencies (for example, Government departments and Crown entities) are not disclosed as related party transactions when they are consistent with the normal operating arrangements between government agencies and undertaken on the normal terms and conditions for such transactions.

The Library, as part of their collections review process, has transferred $217,515 worth of library items to Alexander Turnbull and National Libraries.

There we no significant events after balance date (2014: nil).

104


Statement of non-departmental expenses against appropriations

Unaudited

Actual2014$000

Actual2015$000

Main Estimates

2015$000

Supp Estimates

2015$000



Appropriations for other expenses to be incurred by the Crown

11,690 Depreciation Expense on Parliamentary Complex

11,792

14,000

13,500 *

18,826Members of the House of Representatives' Salaries and Allowances

19,884

20,000

22,000 *

3,172 Members' Communications 2,873 2,864 2,881 *

8,688 Travel of Members and Others - - - *

- Accommodation of Members and Travel of Members' Family 2,586 4,000 4,000 *

- Travel of Former MPs 1,118 1,000 1,000 *

- Travel of Members and Others 4,165 4,375 4,875 *

230 Party and Member Support - ACT - 63 63 *

1,882 Party and Member Support - Green 423 470 470 *

49 Party and Member Support - Independent 12 13 13 *

5,019 Party and Member Support - Labour 1,223 1,256 1,256 *

272 Party and Member Support - Mana 51 68 68 *

465 Party and Member Support - Maori 106 117 117 *

6,946 Party and Member Support - National 1,583 1,787 1,787 *

977Party and Member Support – New Zealand First 233 248 248 *

117Party and Member Support – United Future

43

47 47 *

- Transitional costs for the conclusion of the 50th Parliament

481

- 807 *

58,333 46,573 50,308 53,132

Statements of expenses and capital expenditure


105

Multi Year Appropriations – for other expenses to be incurred by the Crown

Unaudited

Actual2014$000

Actual2015$000

Main Estimates

2015$000

Supp Estimates

2015$000



- Additional Support for Members - MYA 81 175 225 *

- Party and Member Support ACT - MYA 153 332 250 *

- Party and Member Support Green - MYA 2,278 2,850 2,937 *

- Party and Member Support Labour - MYA 7,347 8,530 8,896 *

- Party and Member Support Mana - MYA - 406 - *

- Party and Member Support Maori - MYA 414 804 521 *

- Party and Member Support National - MYA 10,270 12,446 13,142 *

- Party and Member Support New Zealand First - MYA

1,416 1,592 2,325 *

- Party and Member Support United Future - MYA

135 249 250 *

- Transitional costs for the conclusion of the 50th Parliament

22,094 27,384 28,546 *

58,333 68,667 77,692 81,678

* These appropriations have an exemption from year end performance reporting under s15D(2)(b)(ii) of the Public Finance Act 1989.

The Service has a multi-year appropriation (MYA) for other expenses to be incurred by the Crown for parties to support their parliamentary operations during the 51st Parliament including their Leaders’ offices, support staff, research operations, Whips office, communications, administrative and support services to members, and, during the immediate post-election period, qualifying electoral candidates and former members, as allowed under directions given by the Speaker. This appropriation commenced on 1 October 2014 and expires on 30 September 2017.


106

Details of multi-year appropriations – for other expenses to be incurred by the Crown

Original Appropriation

$000

Spent this year

$000

Appropriation remaining 30

June 2015 $000

Additional Support for Members - MYA 900 81 819

Party and Member Support ACT - MYA 984 153 831

Party and Member Support Green - MYA 11,606 2,278 9,328

Party and Member Support Labour - MYA 35,361 7,347 28,014

Party and Member Support Maori - MYA 2,063 414 1,649

Party and Member Support National - MYA 51,927 10,270 41,657

Party and Member Support New Zealand First - MYA 9,189 1,416 7,773

Party and Member Support United Future - MYA 984 135 849

Total 113,014 22,094 90,920

107

Details of multi-year appropriations Purchase or development of capital assets by Crown

Unaudited

Actual2014$000

Actual2015$000

Main Estimates

2015$000

Supp Estimates

2015$000



Purchase or development of capital assets by Crown

Crown Asset Management – Parliamentary complex – minor capital works

16,000 Original appropriation 16,000 16,000 16,000 *

1,613 Carry forward from 2011/12 1,613 1,613 1,613 *

7,000 Adjusted appropriation approved 2013-14 7,000 7,000 7,000 *

- Adjusted appropriation approved 2014-15 (500) (500) (500) *

24,613 Total adjusted appropriation 24,113 24,113 24,113 *

3,101 Cumulative actual expenditure at beginning of year

8,258 8,258 8,258 *

5,157 This year's actual expenditure 5,562 9,000 6,168 *

8,258 Cumulative actual expenditure as at 30 June 2015

13,820 17,258 14,426*

16,355 Appropriation remaining as at 30 June 2015

10,293 6,855 9,687*

The Service has a multi-year appropriation for other expenses to be incurred by the Crown for minor capital works within the Parliamentary complex to carry out essential maintenance and minor capital improvements. This appropriation commenced on 1 July 2012 and expires on 30 June 2016.

* These appropriations have an exemption from year end performance reporting under s15D(2)(b)(ii) of the Public Finance Act 1989.


108

Statement of non-departmental expenses and capital expenditure incurred without appropriation or other authority, or in excess of an existing appropriation or other authority

For the year ended 30 June 2015, the appropriation “Travel of former MPs” of $1,000,000 is over appropriation by $117,623. Entitlements to this appropriation are provided in the Members of Parliament (Remuneration and Services) Act 2013. The Service has no control over the timing, number and the amount of the claims it may receive in any given year.


109

Schedule of expenditure on travel entitlements of former members and their spouse or partner

Section 42 of the Members of Parliament (Remuneration and Services) Act 2013 requires the Crown to report on expenses for travel entitlements of former members and their spouse or partner. The details required by this section are shown in the table below. This information includes travel which commenced prior to 30 June 2015 for which reimbursement requests were received by 18 September 2015. Claims received after this date will be disclosed in the 2015/16 Annual Report.

Name of former member

Total expenses

incurred for international

air travel $

Total expenses

incurred for domestic air

travel $

Total expenses

incurred for rail, road and

ferry travel $

Total $

Hon James Anderton - 3,325 - 3,325

Derek Angus - 707 - 707

Philip Ardern 2,336 - - 2,336

Hon Margaret Austin - 542 133 675

Hon Richard Barker 1,479 3,524 - 5,003

Timothy Barnett 575 409 - 984

Dr Hon Michael Bassett 10,693 1,143 - 11,836

Rt Hon Sir William Birch - 1,888 - 1,888

Hon Maxwell Bradford 5,854 693 350 6,897

Peter Brown 6,544 - - 6,544

Hon Phillida Bunkle 1,952 1,042 - 2,994

Hon Philip Burdon - 6,126 - 6,126

Hon Sir Thomas Burke 7,920 2,441 990 11,351

Hon Richard Burton - 860 - 860

Hon Christopher Carter 8,774 777 - 9,551

Hon John Carter 8,190 1,026 - 9,216

Hon Warren Cooper 1,061 615 - 1,676

Rt Hon Wyatt Creech - 1,600 - 1,600

Dr Hon Sir Michael Cullen 9,196 - - 9,196

Hon Sir Roger Douglas 9,006 3,606 - 12,612

Hon Harry Duynhoven 10,614 3,179 - 13,793

Rt Hon Paul East - 2,287 - 2,287


110


Total expenses


air travel $

Total expenses


travel $

Total expenses


ferry travel $

Total $

Jeanette Fitzsimons 682 805 - 1,487

Hon Anthony Friedlander 4,574 415 161 5,150

Richard Gerard - 527 - 527

Hon Peter Gresham 962 656 - 1,618

Hon Marie Hasler - - 130 130

Hon George Hawkins 6,662 784 - 7,446

Hon Dame Margaret Ann Hercus 6,595 418 - 7,013

Hon Marian Hobbs 9,311 - - 9,311

Hon Peter Hodgson 2,381 4,771 - 7,152

Dail Jones 5,754 - - 5,754

Judith Keall - 560 - 560

Graham Kelly 1,141 2,767 - 3,908

Hon Sir Douglas Kidd 7,427 1,447 62 8,936

Garry Knapp 2,739 185 - 2,924

Warren Kyd 9,599 291 - 9,890

Hon Graeme Lee 8,520 - - 8,520

Hon Sandra Lee-Vercoe 336 - - 336

Hon Murray Luxton - 1,175 - 1,175

Brian MacDonell 7,780 434 - 8,214

Rt Hon Sir Donald McKinnon 7,233 684 415 8,332

Hon Sir James McLay 8,339 - - 8,339

Ian McLean 1,010 1,566 - 2,576

Hon Maurice McTigue 2,579 - - 2,579

Hon Cedric Marshall - 1,385 - 1,385

Hon Denis Marshall - 1,442 - 1,442

Dr Hon Clive Matthewson - 199 - 199

Hon Roger Maxwell 6,859 1,015 47 7,921

Alan Meurant 2,283 - - 2,283

Brian Neeson 3,112 327 - 3,439

Dr Muriel Newman 586 603 - 1,189

Richard Northey 3,204 391 - 3,595

Hon Katherine O'Regan 1,242 - - 1,242

111


Total expenses


air travel $

Total expenses


travel $

Total expenses


ferry travel $

Total $

Mark Peck 1,488 742 - 2,230

Marjorie Pettis 1,944 151 - 2,095

Hon Richard Prebble 1,259 1,256 - 2,515

Hon Derek Quigley 7,761 - - 7,761

Marilyn Quigley 3,641 - - 3,641

Ian Revell 3,936 - - 3,936

Harold Robertson 5,115 2,362 - 7,477

Hon Matthew Robson 5,959 261 - 6,220

Hon Stanley Rodger 2,178 - - 2,178

Eric Roy 2,603 - - 2,603

Hon Dover Samuels 637 320 - 957

Dr Hon Ian Shearer - 431 - 431

Hon Kenneth Shirley 1,785 402 - 2,187

Hon Clement Simich 7,721 - - 7,721

Dr Rt Hon Sir Alexander (Lockwood) Smith 11,172 300 - 11,472

Hon James Sutton - 1,633 - 1,633

Patricia Tennet 580 590 135 1,305

John Terris 1,900 499 - 2,399

Hon Judith Tizard - 2,921 - 2,921

Dr Marilyn Waring 4,499 - - 4,499

Hon Koro Wetere 6,739 437 - 7,176

Hon Pansy Wong 2,685 - - 2,685

Robert Woolerton - 436 - 436

Subtotal of former members 268,706 71,378 2,423 342,507


112

Name of Spouse/Partner of former member Name of former member

Total expenses


air travel $

Total expenses incurred

for domestic air travel

$


for rail, road and

ferry travel

$Total

$

Doreen Anderson Robert Anderson 438 - - 438

Carole Anderton Hon James Anderton 2,805 3,033 - 5,838

Catherine Ardern Philip Ardern 2,336 - - 2,336

Lady Sandra Arthur Sir Basil Arthur 752 - - 752

Barbara Bailey Hon Ronald Bailey - 925 - 925

Amanda Banks Hon John Banks 3,548 1,236 - 4,784

Judith Bassett Dr Hon Michael Bassett 10,693 751 - 11,444

Beverley Beetham Bruce Beetham 2,201 - - 2,201

Gail Birt Dr Hon Clive Mathewson - 199 - 199

Rosemary Bradford Hon Maxwell Bradford 7,420 469 223 8,112

Verna Bridger Larry Sutherland 380 - - 380

Lynley Brown Peter Brown 6,544 - - 6,544

Rosalind Burdon Hon Philip Burdon 6,981 5,932 - 12,913

Lady Fahimeh Rastar Burke

Hon Sir Thomas Burke 9,427 1,678 - 11,105

Carol Burton Hon Richard Burton - 1,041 - 1,041

Leoni Carter Hon John Carter 8,190 1,044 - 9,234

Lowson Collins Dr Hon Sir Michael Cullen 9,196 639 - 9,835

Noeline Colman Rt Hon Fraser Colman 8,682 3,096 - 11,778

Diane Comber Ken Comber 388 705 - 1,093

Lorraine Cooper Hon Warren Cooper 1,061 615 - 1,676

Michael Cox Hon Katherine O'Regan 1,242 - - 1,242

Diana Creech Rt Hon Wyatt Creech 6,809 1,528 - 8,337

Lady Clare Delore Rt Hon Sir Donald McKinnon

9,716 1,753 - 11,469

Lady Glennis Douglas Hon Sir Roger Douglas 8,875 1,952 - 10,827

Margaret Duynhoven Hon Harry Duynhoven 10,614 1,530 - 12,144

Marilyn East Rt Hon Paul East - 1,390 - 1,390

Judith Elworthy Hon Jonathan Elworthy 4,483 1,160 - 5,643

Pamela Friedlander Hon Anthony Friedlander 4,574 144 161 4,879

Bette Jo Flagler Hon Steven Maharey 8,376 - - 8,376

113


Total expenses


air travel $



$


for rail, road and

ferry travel

$Total

$

John Galvin Patricia Tennet 580 380 135 1,095

Mary Gerard Richard Gerard - 558 - 558

Margot Gresham Hon Peter Gresham 962 656 - 1,618

Janice Hawkins Hon George Hawkins 6,662 784 - 7,446

Katherine Hawley John Terris 7,928 - - 7,928

John Hercus Hon Dame Margaret Ann Hercus

6,595 419 - 7,014

John Hunt Marilyn Quigley 3,641 848 - 4,489

Elaine Jones Dail Jones 6,475 145 - 6,620

Peter Kaiser Hon Christopher Carter 9,311 777 - 10,088

Janette Kelly Graham Kelly - 2,533 - 2,533

Lady Jane Kidd Hon Sir Douglas Kidd 7,427 3,480 - 10,907

Dianne Kyd Warren Kyd 9,599 1,388 - 10,987

Daphne Lee Hon Graeme Lee 8,520 - - 8,520

John Lepper Hon Phillida Bunkle 1,608 1,125 - 2,733

Joan MacDonell Brian MacDonell 7,780 - - 7,780

Elizabeth McAffer Hon Derek Quigley 4,965 - - 4,965

Nan McKenzie Hon Noel Scott 1,011 461 - 1,472

Lady Marcy McLay Hon Sir James McLay 4,850 - - 4,850

Barbara McTigue Hon Maurice McTigue 3,173 - - 3,173

Ramon Maniapoto Timothy Barnett - 484 - 484

Anne Marris Hon Peter Hodgson 3,214 4,577 - 7,791

Barbara Marshall Hon Cedric Marshall - 826 - 826

Tui Maxwell Hon Roger Maxwell 6,859 1,299 116 8,274

Vanessa Neeson Brian Neeson 1,075 1,772 - 2,847

Frank Newman Dr Muriel Newman 586 325 - 911

Robyn Northey Richard Northey 3,203 - - 3,203

Margaret Peck Mark Peck 1,488 322 - 1,810

Warren Pettis Marjorie Pettis 1,944 - - 1,944

Gabriele Pfaender Dr Bruce Gregory - 792 - 792

Patricia Ranstead Hon James Sutton - 631 - 631


114


Total expenses


air travel $



$


for rail, road and

ferry travel

$Total

$

Susan Revell Ian Revell 6,266 - - 6,266

Yvonne Riddiford Hon Daniel Riddiford - 400 - 400

Grace Robertson Harold Robertson 407 739 - 1,146

Anne Rodger Hon Stanley Rodger 2,178 447 - 2,625

Elizabeth Roy Eric Roy 2,603 - - 2,603

Jacqueline Samuels Hon Dover Samuels 1,649 - - 1,649

Mary Scholtens Hon Murray Luxton 5,265 1,744 - 7,009

Nicola Shirlaw Rodney Donald 678 935 - 1,613

Jenny Shirley Hon Kenneth Shirley 3,754 1,969 - 5,723

Ann Simich Hon Clement Simich 7,721 - - 7,721

Lady Alexandra Smith Dr Rt Hon Sir Alexander (Lockwood) Smith

8,482 2,098 - 10,580

Dr Denis Sullivan Hon Tini (Whetu) Tirikatene-Sullivan

2,814 1,355 - 4,169

Margaret Townshend Charles Townshend - 1,406 - 1,406

Susannah Walker Hon Herbert Walker 10,112 268 - 10,380

Nedracita Wetere Hon Koro Wetere 6,155 - - 6,155

Cunitia Wilkinson Hon Peter Wilkinson - 375 - 375

Sammy Wong Hon Pansy Wong 2,685 - - 2,685

Subtotal of spouse/ partner of former members

305,956 67,138 635 373,729

Summary of totals

Subtotal of former members 268,706 71,378 2,423 342,507

Subtotal of spouse/ partner of former members 305,956 67,138 635 373,729

Reimbursements for 2013/14 travel 18,137

Fringe benefit taxes 383,250

Total 1,117,623


ISSN 2324-2868 (Print) ISSN 2324-2876 (Online)

Copyright

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You are free to copy, distribute and adapt the work for non-commercial purposes as long as you attribute the work to the Parliamentary Service and abide by the other licence terms.

Note: the use of any Parliamentary logo [by any person or organisation outside of the New Zealand Parliament] is contrary to law.

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Presented to the House of Representatives pursuant to section 44(1) of the Public Finance Act 1989

ANNUAL REPORT 2014 - 2015

PARLIAMENTARY SERVICE

A.13

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