Ministry of Justice Annual Report

Transcription

1 E.64 AR(04) Ministry of Justice Annual Report 1 JULY JUNE 2004 Presented to the House of Representatives Pursuant to section 34A of the Public Finance Act 1989 MINISTRY OF JUSTICE ANNUAL REPORT

2 October 2004 Ministry of Justice Produced by the Ministry of Justice PO Box 180 Wellington For further information please visit our website 2 MINISTRY OF JUSTICE ANNUAL REPORT

3 Foreword In accordance with section 39 of the Public Finance Act 1989, I submit the following report on the operations of the Ministry of Justice for the period 1 July 2003 to 30 June This includes audited financial statements and covers the Ministry s administration of the Acts outlined in Part 3 of this report. Belinda Clark Chief Executive and Secretary for Justice MINISTRY OF JUSTICE ANNUAL REPORT

4 Introduction The 2003/04 Annual Report of the Ministry of Justice reports on the achievement of objectives and the delivery of outputs by the new organisation created through the merger of the former Ministry of Justice and the Department for Courts on 1 October It reports on the activities and outputs detailed in the 2003/04 Statements of Intent for the Ministry of Justice and Department for Courts. The Annual Report should be read in conjunction with the Department for Courts Closure Report that summarises the delivery of outputs and Financial Statements for the Department for the period 1 July 2003 to 30 September The Annual Report is presented in three parts. PART 1 sets out the role of the Ministry and the outcomes to which it contributes. It also highlights key progress in 2003/04. PART 2 reports performance against the outputs set out in the 2003/04 Statements of Intent of the former Ministry of Justice and the Department for Courts. It does this through the inclusion of Financial Statements and a Statement of Service Performance to meet the requirements of the Public Finance Act PART 3 provides supporting information, including an overview of the Ministry s responsibilities and activities. 4 MINISTRY OF JUSTICE ANNUAL REPORT

5 Contents Chief Executive s Overview PART 1 Strategic Context and Year in Review Strategic Context Role of the Ministry Environmental Context and Key Issues Justice Sector Outcomes Year in Review Progress in 2003/ Capability Projects Additional Statutory Reporting Requirements PART 2 Financial Summary and Service Performance Financial Summary Statement of Responsibility Audit Report Statement of Accounting Policies Financial Statements Service Performance Statement of Service Performance for Votes: Justice; Treaty Negotiations; and Courts PART 3 Supporting Information Structure and Provision of Services Locations for Provision of Services Courts, Committees, Tribunals and Other Authorities Administered Non-departmental Output Classes Court-related Statistics Acts Administered Major Reports and Publications Contacts for Further Information MINISTRY OF JUSTICE ANNUAL REPORT

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7 Chief Executive s Overview I am pleased to present the first Annual Report of the Ministry of Justice following the merger of the previous Ministry of Justice with the Department for Courts on 1 October The merger provided an opportunity to bring together policy and operational delivery roles, and it is to the credit of all staff that the work of the expanded Ministry has continued to be delivered in all areas while we also addressed merger issues such as the rationalisation of functions duplicated by two previous organisations. The Ministry of Justice has broad responsibilities across three Votes: Justice; Treaty Negotiations; and Courts. These responsibilities encompass: leading the development of the overall strategic direction for the sector; policy and legislative development; negotiation and settlement of historic Treaty claims; the provision of services and facilities that support judicial decision-making processes; and the enforcement of fines and monetary orders. By discharging these responsibilities the Ministry contributes towards the achievement of the justice sector s long-term outcomes of safer communities and a fairer, more credible and more effective justice system. The 2003/04 year was a challenging one for the new Ministry. We inherited a range of complex capability issues that the new Executive Team, appointed in February 2004, is progressively addressing. As part of this, one of the key pieces of work that began during the 2003/04 financial year was the Baseline Review. The review will provide an assessment of the Ministry s current ability to deliver its obligations, and provide the Ministry with a basis from which to move forward. Other notable achievements during the year included: the establishment of the Supreme Court of New Zealand with the first appeal application in March 2004; completing the rollout of the Case Management System (CMS) to all District and High Courts; the passing of 25 Acts. Significant milestones have been achieved in the criminal justice sector including the passing of the Parole (Extended Supervision) Act 2004 (enabling a supervision regime for high risk child sex offenders for a period of up to 10 years after the end of their sentence), the Criminal Investigations (Bodily Samples) Act 2004 (extending the ability to collect DNA for a wider range of offences (eg burglary) and the Criminal Records (Clean Slate) Act 2004; opening a second Collections contact centre in October 2003 to address the increased level of fine collections undertaken by the Ministry; continuing Treaty of Waitangi settlement negotiations with over 25 claimant groups from around the country involved in negotiations with the Crown or in pre-negotiation discussions, and Crown Law representing the Crown at 18 hearings of historical claims; enhancing co-ordination across the sector through initiatives such as the Justice Sector Information Strategy and collaborating on key activities such as addressing youth offending. While this year has set the scene for the new Ministry, there is much to be done as we move forward. I thank managers and staff for their efforts so far, and look forward to working together to meet the challenges ahead of us as we build a strong, effective organisation serving all New Zealanders. Belinda Clark Chief Executive and Secretary for Justice MINISTRY OF JUSTICE ANNUAL REPORT

8 IMAGES ON FACING PAGE From left to right: Judge Andrew Becroft, Principal Youth Court Judge, introduces the Youth Court website to some young people. Liz Sinclair, Deputy Secretary Operations with Collections Officer Lana Tuigamala at the Auckland Collections Contact Centre. Members of the community at the presentation of the Waitangi Tribunal report on Wellington and its environs: Te Whanganui ä Tara me öna Takiwä. Gerard Clark, Project Manager for the Ministry team which drafted the Government response to the report of the Law Commission Delivering Justice for All: A Vision for New Zealand Courts and Tribunals. Minister of Justice Hon Phil Goff with Chief Executive Belinda Clark and General Manager, District Courts Tony Fisher at the function to mark the establishment of the Ministry on October MINISTRY OF JUSTICE ANNUAL REPORT

9 Part 1 Strategic Context and Year in Review Photo: The Dominion Post MINISTRY OF JUSTICE ANNUAL REPORT

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11 Part 1 Strategic Context and Year in Review Strategic Context Role of the Ministry Environmental Context and Key Issues Justice Sector Outcomes Year in Review Progress in 2003/ Capability Projects Additional Statutory Reporting Requirements MINISTRY OF JUSTICE ANNUAL REPORT

12 PART 1 STRATEGIC CONTEXT Role of the Ministry On 1 October 2003 a new organisation the Ministry of Justice was created as a result of the merger of the former Ministry of Justice and the Department for Courts. The new Ministry undertakes three core functions: the provision of leadership for the justice sector; the provision of policy advice; and the delivery of court-related services. These functions are administered in three Votes: Justice; Treaty Negotiations; and Courts. Sector leadership The Ministry has a lead role in setting the overall direction of the justice sector. This includes working collaboratively with other sector agencies to collect information, budget, provide communications and plan towards the achievement of the sector outcomes that have been developed in conjunction with the other agencies. The sector s core agencies are the Ministry, Department of Corrections, New Zealand Police and the Crown Law Office. Child, Youth and Family is treated as a core agency for the purposes of addressing youth offending and early intervention issues. The sector incorporates various Crown entities and other organisations. These include the Legal Services Agency, Serious Fraud Office, Human Rights Commission, Privacy Commission, Office of the Ombudsmen, Police Complaints Authority, Law Commission, New Zealand Council of Victim Support Groups, Electoral Commission, Electoral Enrolment Agency and aspects of the Public Trust. The sector has strong links with other agencies, such as the Ministries of Social Development, Health, Education, Environment and Economic Development, and Te Puni Kökiri. The integrated approach to sector planning is illustrated in the following diagram. JUSTICE SECTOR ANNUAL PLANNING CYCLE JUSTICE SECTOR AGENCIES NZ Police Department of Corrections Ministry of Justice Child, Youth and Family Crown Law Office Crown and other entities Key steps in process Assess environmental factors, and agree sector outcomes Review outputs, recommend improvements and new initiatives Make connections between outputs and outcomes Monitor and evaluate progress towards outcomes Ensure outcomes measurement is appropriate Deliver agreed outputs 12 MINISTRY OF JUSTICE ANNUAL REPORT

13 Policy advice The Ministry provides policy advice to the Minister of Justice, Minister for Courts, Minister in Charge of Treaty of Waitangi Negotiations, Associate Ministers and the government. The Ministry provides briefings and advice to Ministers and Cabinet, and support to the Justice and Electoral, Law and Order and Mäori Affairs select committees. This contributes to the strategic direction of government, and the reform and development of justice legislation. Key relationships To deliver its core functions effectively, the Ministry fosters and maintains a range of key relationships with the justice sector Ministers and Associate Ministers, members of the Judiciary, members of tribunals and authorities, officers of Parliament, members of the legal profession, and community groups including Mäori, Pacific peoples and court users. Operational services The Ministry delivers the following services on behalf of government: administration, case management and support services for the Supreme Court, Court of Appeal, High Court and District Courts including the Family Court and Youth Court; administration, case management and support services to specialist jurisdictions including the Mäori Land Court, Mäori Appellate Court, Environment Court, Coroners, and a range of authorities and tribunals including Disputes Tribunals and the Tenancy Tribunal; administration, inquiry management and support services to the Waitangi Tribunal; negotiation for settlements of historical claims arising from the Treaty of Waitangi and management of land for use in settlements; administration of Parliamentary elections, by-elections and referenda; collection and enforcement of court-imposed monetary penalties, infringements, and civil debt. MINISTRY OF JUSTICE ANNUAL REPORT

14 PART 1 STRATEGIC CONTEXT Environmental Context and Key Issues The agencies of the justice sector are responsible for enacting government policy to address crime and improve community safety. Overall the rates of recorded offences in New Zealand are dropping. In June 2004 official crime statistics showed recorded offences were 1,053.7 per 10,000 head of population for the year - the lowest rate on record since Rates have fallen across major offence types including violence, sexual offending and murder. The Ministry and the other core sector agencies need to address a range of factors and trends in New Zealand society to further reduce crime and ensure access to justice. The main issues are outlined below. Progress on initiatives to address these issues - within the Ministry and across the sector - is detailed later in the Report. National trends in population and demographics New Zealand s population is becoming increasingly diverse as a result of immigration and the high growth in the number of young Mäori and Pacific peoples. Laws relating to prohibiting discrimination and promoting equal opportunity will become increasingly important. The age profile of New Zealanders is changing as the baby boomers, born between 1945 and 1965, grow older. Reduced fertility rates mean the number of children and young people will decline in the long-term. In the meantime, the number of young people (those aged between 15 and 24) will rise until approximately Because the age profile of Mäori and Pacific peoples is younger than for others, they will form a much greater proportion of young people. Family structures are changing. There is a decrease in the number of families with dependant children; an increase in the number of households without children; and an increase in one-parent families (84 percent of children in 1986 were living in two-parent families, compared with 73 percent in 2001). Youth offending Police apprehensions of youth (people under 17 years old) as a proportion of all offender apprehensions have remained relatively stable since 1991, at between 21 and 23 percent. Serious offending is only a small percentage of youth offending. About 80 percent of all youth offending is resolved through Police diversion rather than formal youth justice processes. Up to 70 percent of offences that end in the youth justice system are committed by between five to 15 percent of offenders. Effective early intervention with children and young people at risk of becoming repeat offenders has the potential to return high social and fiscal benefits. Offending by Mäori Statistics show Mäori are greatly over-represented among offenders. They are more likely to be reconvicted and re-imprisoned than the general population. Forecasts indicate that the proportion of Mäori in prison is expected to increase. This is partly because Mäori make up a greater proportion of the younger age group, which is more likely to offend. It is likely that the high offending rate is also related to the relatively low socio-economic position of a significant proportion of Mäori. Violence and family violence Since 1994, violent offending, including sexual violence, has stabilised at about 10 percent of all recorded offences. Between 1995/96 and 2002/03, there was a nine percent increase in the number of recorded violent and sexual attacks. While murder rates highly in the public s concern about violent crime, it makes up less than 0.4 percent of all reported violent crimes. Family violence affects families from all cultures, backgrounds and socio-economic circumstances. The changing attitudes of society towards family violence and the Police practice of arresting perpetrators of family violence (which began in the late 1980s) led to recorded family-related offences increasing from 0.6 per 1,000 people in 1994 to 1.3 per 1,000 people over 2001/02 and 2002/ MINISTRY OF JUSTICE ANNUAL REPORT

15 Recorded offences in relation to the Domestic Violence Act 1995 increased from 3,323 in 1997/98 to 4,200 in 1999/00. However, the number of cases resulting in convictions for breaches of protection orders has stabilised at just over 1,000 since Burglary and theft of and from cars Police statistics show that dishonesty offences form the largest category of crime, making up 60 percent of all offences in Of this, approximately 50 percent related to theft and 26 percent to burglary. The resolution rate for burglaries rose to 17.8 percent in 2002/03, having been steady at about 12 percent between 1994 and While vehicle crime makes up nearly 18 percent of recorded offences, surveys indicate that theft of and from cars is significantly under-recorded and/or under-reported. The incidence of vehicle crime in New Zealand is high compared with overseas. International experience indicates there is potential to reduce vehicle crime significantly through situational crime prevention approaches and targeting crime hot spots. These approaches require strong partnerships between agencies. administers Acts. At the same time, the Ministry supports the independent Judiciary to administer the court system. Relationships between the Crown and Mäori In recent decades, the Treaty of Waitangi has had increasing prominence. The Government recognises the Treaty as a key element of constitutional government and the foundation for the relationship between Mäori and the Crown. The Government supports the need to recognise and respect the Treaty and the shared obligations of both partners to act reasonably, honourably and in good faith. Laws governing family relationships and other private dealings Regulatory frameworks and laws governing private relationships affect every New Zealander. They cover diverse activities such as raising children, buying houses and making wills. Yet changing social values, such as the increased prominence of extended families and growth in technology, mean many of these laws and practices are now outdated. Court services Over recent years, workloads have increased for courts, tribunals and authorities. This has been driven by a range of factors including changes to legislation, policing practice and demographics. There has been much focus on the accessibility and quality of court services and suggested areas for improvement. In March 2004, the Law Commission tabled its report Delivering Justice for All: A Vision for New Zealand Courts and Tribunals which raised a range of issues about courts and related services and recommended changes. Independence of the branches of government Maintaining the separation of powers and the independence of each of the branches of government the legislature, the executive and the Judiciary is fundamental to New Zealand s constitutional arrangements. The Ministry has a unique role within the public sector. It works as an agency of the executive, (Cabinet and government departments) and develops policy, drafts Bills and MINISTRY OF JUSTICE ANNUAL REPORT

16 PART 1 STRATEGIC CONTEXT Justice Sector Outcomes The success of the justice sector is dependent on all sector agencies and, in particular, the core agencies co-ordinating their activities to ensure that justice-related issues are dealt with in the most effective manner and that the sector is effectively contributing to achievement of the Government s key goals. Justice Sector End Outcomes To achieve this, the core justice sector agencies the Ministry, Department of Corrections, New Zealand Police, Crown Law, and Child, Youth and Family work collaboratively with the Ministries of Social Development, Health, Education, Environment and Economic Development, and Te Puni Kökiri. In early 2003, the Ministry led the core agencies in developing the justice sector outcomes of: safer communities; and a fairer, more credible and more effective justice system. These outcomes reflect the importance of crime reduction priorities and ensuring the justice system continues to meet the needs of society. The underlying logic, characteristics and contribution of each of these outcomes to the key Government goals relating to the justice sector are as follows. Safer communities being communities in which there is reduced crime and in which safety and wellbeing is enhanced through partnerships Community safety influences the degree to which people engage in social, productive or creative enterprises or activities. People are assured when there are core safety functions, less crime and a visible Police service that meets communities expectations to lead safe lives. Safety is also enhanced when communities are supported in their desire to be safe through locally-based government agencies and organisations, such as Safer Community Councils. The characteristics of safer communities require: the reduction of crime enhanced road safety maintenance of order and preservation of the peace assistance for members of the public when they call for Police services minimisation of threats to national security safe and secure management of offenders by way of compliance with sentences and orders assurance that those who have offended are rehabilitated and reintegrated effectively back into society crime prevention and safety intervention partnerships, through supporting local authorities, communities and non-government organisations to achieve common community safety and crime prevention goals partnerships with Mäori to improve outcomes for Mäori, particularly the reduction of offending by and victimisation of Mäori the achievement of wellbeing and improved life outcomes for children, young persons and their families where criminal activity or family relationship issues are factors. 16 MINISTRY OF JUSTICE ANNUAL REPORT

17 A fairer, more credible and more effective justice system being a system in which people s interactions are underpinned by the rule of law and justice services are more equitable, credible and accessible New Zealand s justice system comprises constitutional arrangements and legal frameworks, civil and criminal structures, police investigation, judicial process and dispute resolution, and offender management. The characteristics of a fair and effective justice system require: laws, regulations, policies and practices that provide certainty for people in their relationships with each other and with the government and its agencies appropriate balance between the powers of State and individual rights and freedoms, including the right to question the actions of public agencies equitable, easily accessible and credible justice services that are understood by the people using them timely processes and fair results the confidence of the public courts that protect the rights and freedoms of natural persons and are independent (constitutional integrity) the right to due process (that is, the right to be represented in court by a lawyer, have evidence heard in an open court, have cases proved beyond reasonable doubt, to appeal against a conviction etc) disputes between individuals, groups and/or companies dealt with by the rule of law (business contracts, wills, tax, land and other property, cases where negligence has caused another s loss, and family matters) robust appointment processes for judges and a well-supported Judiciary accountability for criminal offences through sentences that are seen to be appropriate and fair protection for the vulnerable the rights of victims being protected and their interests being taken proper account of fair treatment of offenders unimpeachable integrity from individuals and agencies within the system historical Treaty claims being resolved in a fair, durable and timely manner a Parliamentary electoral system which is managed in a way that maintains the confidence of citizens, political parties and Parliament. MINISTRY OF JUSTICE ANNUAL REPORT

18 PART 1 STRATEGIC CONTEXT Justice Sector Intermediate Outcomes Following the establishment of the two end outcomes of safer communities and a fairer, more credible and more effective justice system, the sector developed a set of more specific intermediate outcomes. The sector began implementing these intermediate outcomes in the 2004/05 financial year and will demonstrate, over a threeto-five-year period, the progress being made across the sector towards their achievement. The intermediate outcomes are as follows. Safer communities INTERMEDIATE OUTCOME Reduced youth offending Reduced offending by Mäori Reduced violence Reduced family violence Reduced burglary Reduced organised crime Reduced serious traffic offending Reduced theft of and from cars SUPPORTING STRATEGY Youth Offending Strategy Crime Reduction Strategy and individual agency Mäori strategies General Violence Reduction Strategy Te Rito New Zealand Family Violence Prevention Strategy Police and Ministry of Justice strategies Police Organised Crime Strategy and Methamphetamine Action Plan 2010 Road Safety Strategy Strategy being developed jointly between the Ministry of Justice and the Police A fairer, more credible and effective justice system INTERMEDIATE OUTCOME Improved access to and delivery of court services, and services for children, youth and families Improved public confidence in the Police, the Judiciary and other justice institutions Improved relationships between the Crown and Mäori Improved laws governing family relationships and other private dealings SUPPORTING STRATEGY - The Government s response to the Law Commission s report Delivering Justice for All: A Vision for New Zealand Courts and Tribunals - Baseline Review of Child, Youth and Family Strategies to be developed. Current initiatives include restructuring of the independent Police Complaints Authority and initiatives to support the Judiciary Current emphasis on contemporary Treaty of Waitangi issues and progress on historical Treaty settlements Strategies to be developed. Supported by a variety of Law Commission reports. 18 MINISTRY OF JUSTICE ANNUAL REPORT

19 Linkages Between Key Government Goals and Justice Sector and Ministry Outcomes in place for the new Ministry s 2004/05 Statement of Intent Strengthen national identity and uphold the principles of the Treaty of Waitangi Grow an inclusive, innovative economy for the benefit of all Maintain trust in government and provide strong social services Improve New Zealanders skills Reduce inequalities in health, education, employment and housing Protect and enhance the environment KEY GOVERNMENT GOALS SAFER COMMUNITIES A FAIRER, MORE CREDIBLE AND MORE EFFECTIVE JUSTICE SYSTEM JUSTICE SECTOR END OUTCOMES REDUCED youth offending offending by Mäori violence family violence burglary organised crime serious traffic offending theft of and from cars IMPROVED access to and delivery of court services, and services for children, youth and families public confidence in the Police, Judiciary and other justice institutions relationships between the Crown and Mäori laws governing family relationships and other private dealings JUSTICE SECTOR INTERMEDIATE OUTCOMES SAFER COMMUNITIES All justice sector intermediate outcomes except reduced serious traffic offending A FAIRER, MORE CREDIBLE AND MORE EFFECTIVE JUSTICE SYSTEM All justice sector intermediate outcomes including improved public confidence in court-ordered fines and reparation Effective support provided to the Judiciary MINISTRY INTERMEDIATE OUTCOMES ELECTORAL Improved public confidence in the administration of the Parliamentary electoral process Fewer institutional barriers to participating in elections VOTE JUSTICE Policy advice Sector leadership and support Management of the Parliamentary electoral system Crime prevention and community safety VOTE TREATY NEGOTIATIONS Policy advice: Treaty negotiations Representation: Waitangi Tribunal Property portfolio management MINISTRY SERVICE DELIVERY VOTE COURTS Services to: - Higher Courts - District Courts (including the Family Court and Youth Court) - Specialist courts, tribunals and other authorities - Waitangi Tribunal Collection and enforcement of fines and civil debts MINISTRY OF JUSTICE ANNUAL REPORT

20 PART 1 YEAR IN REVIEW Progress in 2003/04 This section highlights the key achievements of the new Ministry against the 2003/04 Statements of Intent of the former Ministry of Justice and the Department for Courts. Prior to the merger and the implementation of justice sector intermediate outcomes, the Ministry of Justice had in place its own intermediate outcomes, while the Department for Courts had in place a set of departmental outcomes. Key initiatives for each organisation in the 2003/04 year were presented in their Statements of Intent under these respective outcomes. Key projects and initiatives implemented are reported here against these outcomes. They are presented within their respective votes: Vote Justice and Vote Treaty Negotiations delivered by the former Ministry of Justice; and Vote Courts delivered by the former Department for Courts until the merger took effect and the new Ministry became responsible for all three Votes. Linkages Between Justice Sector and Ministry Outcomes in place at the time of the former Ministry and Department for Courts 2003/04 Statements of Intent SAFER COMMUNITIES A FAIRER, MORE CREDIBLE AND MORE EFFECTIVE JUSTICE SYSTEM JUSTICE SECTOR END OUTCOMES SAFER COMMUNITIES Reduced youth offending and re-offending Reduced burglary Reduced violence and sexual offending Reduced organised crime A FAIRER, MORE CREDIBLE AND MORE EFFECTIVE JUSTICE SYSTEM Increased public confidence in the three arms of government Improved access to appropriate services and processes for dispute resolution Human rights are more consistently incorporated into government legislation, policy and practices Modern regulatory frameworks and laws governing private relationships Improved confidence in the administration of the Parliamentary electoral process Fair and durable settlements that resolve historical grievances relating to the Treaty of Waitangi MINISTRY OF JUSTICE INTERMEDIATE OUTCOMES SAFER COMMUNITIES A FAIRER, MORE CREDIBLE AND MORE EFFECTIVE JUSTICE SYSTEM The credibility of the criminal justice system is maintained Victims of crime are treated with respect and consideration Children and others at risk in domestic situations are protected All parties have access to fair, timely and affordable processes for resolving disputes with government agencies and each other Confidence in the institutions established to maintain the principles of the Treaty of Waitangi DEPARTMENT FOR COURTS DEPARTMENTAL OUTCOMES VOTE JUSTICE Ministerial servicing and management of non-departmental output classes Policy advice Management of the Parliamentary electoral system Services to support crime prevention and community safety VOTE TREATY NEGOTIATIONS Policy advice: Treaty Negotiations Representation: Waitangi Tribunal Property portfolio management MINISTRY OF JUSTICE OUTPUTS VOTE COURTS Policy advice and Ministerial servicing Collection or enforcement of fines and civil debts Case management criminal jurisdiction Case management civil jurisdiction Environment Court, tribunals and other authorities Mäori land information and case management Support to the Waitangi Tribunal DEPARTMENT FOR COURTS OUTPUTS The new Ministry is now working to the justice sector intermediate outcomes developed by the sector in 2004 and has one set of intermediate outcomes in place across the Ministry as shown in the diagram on page MINISTRY OF JUSTICE ANNUAL REPORT

21 Summary of progress in 2003/04 in Vote Justice and Vote Treaty Negotiations This section reports progress against the key projects set out in the Ministry of Justice s 2003/04 Statement of Intent. The projects are described under the justice sector outcomes and the former Ministry s intermediate outcomes to which they relate. Safer communities Reduced youth offending and re-offending Key activities Contributed to inter-agency oversight of work on developing a comprehensive early intervention system, and to project work led by other agencies on developing initiatives (for example, conduct disorder initiatives and responses to multiple risk families). Progressed establishment of the Te Hurihanga intensive residential programme for serious recidivist young offenders including selection of a programme provider. Further strengthened the capability of Youth Offending Teams, developing improved monitoring tools and information bases for analysis of performance and information sharing guidelines. Reduced burglary Key activities Evaluated police initiatives to target burglary by reviewing: the first year report of case studies of four police areas; household surveys; examination of Police statistics; and interviews with burglars and victims. Supported the enactment of the Criminal Investigations (Bodily Samples) Act 2004, which extends the type of DNA samples that can be obtained from persons suspected or convicted of offences, and extends the range of offences for which samples may be obtained. Supported the Secondhand Dealers and Pawnbrokers Act 2004 enabling more effective measures to address trafficking in stolen goods. Reduced violence and sexual offending Key activities Co-ordinated implementation of strategies to regulate and control the extent to which alcohol is supplied to and used by young people. The Social Development Committee approved the violence reduction strategy Safer Communities: Action Plan to Reduce Community Violence and Sexual Violence. Three groups are overseeing action areas of the plan: a National Taskforce for Community Violence Reduction; an Interagency Steering Group on Sexual Violence; and a Public Education and Communication Programme Management Group. Supported the development and enactment of the Parole (Extended Supervision) Act 2004, which provides a regime for the supervision of high-risk child sex offenders for up to 10 years after the end of their sentence. Supported the development of improved processes for inter-agency information sharing about child sex offenders in the Corrections Act Supported the Crimes Amendment Bill (No.2) which updates the sexual offence provisions of the Crimes Act MINISTRY OF JUSTICE ANNUAL REPORT

22 PART 1 YEAR IN REVIEW Reduced organised crime Key activities Continued work with Police to update the Organised Crime Strategy. Developed policy advice on the proceeds of crime regime to identify changes to make the regime more effective and efficient. Supported the drafting of the Misuse of Drugs Amendment Bill, which contains amendments to investigative powers and offences related to methamphetamines. A fairer, more credible and more effective justice system Increased public confidence in the three arms of government Key activities Provided advice and support for a range of legislative matters including the: Coroners Bill; Police Complaints Authority (Commission of Inquiry into Police Conduct) Bill; Judicial Matters Bill; Public Finance (State Sector Management) Bill and the Members of Parliament (Pecuniary Interests) Bill; and amendments to the Privacy Act Began establishing the role of Judicial Conduct Commissioner that will allow the public to raise concerns in respect of judicial conduct. Provided advice and services for statutory and judicial appointments. Led an inter-departmental working group that conducted a review of the relevance of oaths and affirmations used in the courts system. Continued implementation of the Justice Sector Information Strategy completing the year-one initiatives. Improved access to appropriate services and processes for dispute resolution Key activities Developed policy on eligibility for legal aid. Established a project team to prepare the government response to the Law Commission report Delivering Justice for All: A Vision for New Zealand Courts and Tribunals. Supported the establishment of the Supreme Court. Provided advice and support on a range of legislative matters including: the Criminal Procedures Bill, which includes majority verdicts and other measures to improve the efficiency of the jury process; and the Law Commission s report Improving the Arbitration Act In conjunction with the Law Commission, prepared an evaluation report about status hearings to be released with the Law Commission discussion paper on preliminary hearings. 22 MINISTRY OF JUSTICE ANNUAL REPORT

23 Human rights are more consistently incorporated into government legislation, policy and practices Key activities Completed drafting of a New Zealand Bill of Rights Handbook and Guidelines for policy advisers. Vetted 51 non-ministry of Justice bills against the New Zealand Bill of Rights Act Continued to work with the Ministry of Foreign Affairs and Trade and other agencies to ensure consistency with New Zealand s international obligations including: biosafety; cross-border issues relating to service of documents and recognition of judgments; revised text for the Draft Declaration on the Rights of Indigenous Peoples to meet New Zealand s requirements; the Proposed Convention on the Rights of People with Disabilities; and the Optional Protocol to the Convention Against Torture. Provided comments to other agencies on: a Non-Governmental Organisations Commentary on the Hague Abduction Convention; several child support review papers; pastoral care of international students over 18 years; a briefing for incoming Family Commissioners; the Law Commission s New Issues in Legal Parenthood preliminary paper; and queries from Inland Revenue on the draft Hague Maintenance Convention. Provided advice to the Human Rights Commission during the drafting of its Status Report on Human Rights. Modern regulatory frameworks and laws governing private relationships Key activities Provided advice and support for a range of matters including: the framework for assisted human reproduction; the Care of Children Bill; reform of adoption laws; review of legislative provisions for recognition of relationships; a new framework for the legal profession; the Lawyers and Conveyancers Bill; monitoring the Sale of Liquor Amendment Act 1999; the Films, Videos, and Publications Classification Amendment Bill; review of the Private Investigators and Security Guards Act 1974; development of a public discussion document on the Real Estate Agents Act 1976; and the Secondhand Dealers and Pawnbrokers Act Developed the non-judge-led mediation pilot in response to the Law Commission s preliminary paper Family Court Dispute Resolution. Considered implementation issues for the Hague Conference on the Taking of Evidence Abroad in the proposed Evidence Bill and continued to service the Hague Conference on Private International Law. MINISTRY OF JUSTICE ANNUAL REPORT

24 PART 1 YEAR IN REVIEW Improved public confidence in the administration of the Parliamentary electoral process Key activities Provided advice to the Justice and Electoral Committee Inquiry into the 2002 General Election. Completed a study on voter technology and began preparation for a voter technology pilot. Completed a strategy to reduce institutional barriers for people with disabilities. Fair and durable settlements that resolve historical grievances relating to the Treaty of Waitangi Key activities Provided representation at Waitangi Tribunal hearings including 18 hearings and seven judicial conferences. Provided advice and assistance to 25 claimant groups involved in negotiations or pre-negotiation discussions. Continued implementation of signed Deeds of Settlement. Continued management of surplus Crown properties available for settlement redress. 24 MINISTRY OF JUSTICE ANNUAL REPORT

25 Summary of progress in 2003/04 in Vote Courts This section reports progress against the key initiatives set out in the Department for Courts 2003/04 Statement of Intent. The activities are described under the Department for Courts Departmental outcomes. The Department for Courts had five Departmental outcomes all of which contributed to one or both of the justice sector outcomes of safer communities and a fairer, more credible and more effective justice system. Department for Courts Departmental Outcomes The credibility of the criminal justice system is maintained Victims of crime are treated with respect and consideration Children and others at risk in domestic situations are protected All parties have access to fair, timely and affordable processes for resolving disputes with government agencies and each other Confidence in the institutions established to maintain the principles of the Treaty of Waitangi. Key activities Established and opened temporary facilities for the Supreme Court within budget, and implemented registry and administrative support arrangements. Completed the rollout of the Case Management System (CMS) to all High Courts and District Courts including the Family Court and Youth Court. Completed a post-implementation review of CMS in December Implemented the Court Education for Young Witnesses Programme nationwide in December The programme aims to ease the court experience for children and young people who are witnesses, and their caregivers and supporters. Supported legislation for: the Juries Act 1981; Criminal Records (Clean Slate) Bill; and Corrections law reform. Opened the second Collections contact centre in Auckland in October Expanding call centre capacity will allow collection of fines to keep pace with increased imposition of fines. Launched the Operation Finetune/Confiscated Car Club campaign. It generated more than $10 million in overdue fines paid or put under arrangement. Implemented digital evidence recording and transcription in major Environment Court hearings. Implemented a range of initiatives to improve communications with, and service to, users of the Mäori Land Court including development of staff training, information presentations and standard application forms. Completed the establishment of the Mäori Land Court Consultative Forum as part of improving consultation processes and consulted the Forum about the Mäori Landonline project. Continued to develop the relationship between the Waitangi Tribunal and Treaty sector agencies with the signing of a Memorandum of Understanding with the Crown Forestry Rental Trust in June MINISTRY OF JUSTICE ANNUAL REPORT

26 PART 1 YEAR IN REVIEW Capability Projects As a new organisation, the Ministry has had to address a range of complex capability issues, including the amalgamation and alignment of staff, systems and processes from the two former organisations. In the 2003/04 financial year, the Ministry achieved a smooth transition from the former Ministry of Justice and the Department for Courts to the expanded Ministry, and work commenced on key capability issues for the new organisation. Projects and activities to improve the Ministry s capability included the following. Management and organisational arrangements Implemented a senior management structure for the expanded Ministry. Reviewed a number of duplicate corporate support areas including Finance and Information Technology. Established a pilot to trial the Business Continuity Management approach. Identified the requirements of the Civil Defence Emergency Management Act 2002, and installed appropriate equipment and supplies in all Ministry sites. Reviewed Civil Defence training and began delivering additional training required. Incorporated the evaluation of procedures and practices against legislative compliance into Business Assurance reviews. Commenced work on: improvements to the existing Performance Management System for 2004/05 and unified National Office Performance Management and Remuneration Systems; development of an organisational health and safety framework; unifying National Office position descriptions; and reviewing organisational units. Led the development and implementation of the Justice Sector Communications Strategy. Established a team to undertake a comprehensive review of the Ministry s capability and examine whether the baseline funding the Ministry receives from government is adequate for the delivery of services. Property Completed: upgrades of the Hawera and Kaikohe courthouses; a major addition to Dargaville courthouse; a major refurbishment of Dunedin District Court; and continued construction of the Gisborne courthouse. Completed stage one of the Court of Appeal upgrade. Acquired a site for the new Greymouth Court and commenced planning for projects in Hastings and Blenheim. Information management and technology Completed the year-one initiatives of the Justice Sector Information Strategy including: established new governance arrangements, including the Justice Sector Information Committee comprising senior officials from core agencies, and four working groups developed and commenced a two-year programme of data quality and integrity improvement initiatives successfully piloted an online work tool to further develop the sector s information and knowledge-sharing capability agreed the sector approach to electronic exchange of information and associated standards; and developed and monitored a plan of key sector technology projects including the decommissioning of the Law Enforcement System. Integrated a Criminal Data Set derived from CMS and Department of Corrections data into the Justice Data Warehouse. Developed a strategic framework for knowledge management including development of an electronic information management system and piloted in two of the Ministry s national office sites. Initiated review of information technology functions to align with industry good practice. 26 MINISTRY OF JUSTICE ANNUAL REPORT

27 Additional Statutory Reporting Requirements There are a number of additional statutory requirements that the Ministry is required to report against. These are: reducing inequalities, contributing towards the Disability Strategy, and relationships with community, voluntary and tangata whenua organisations. This section summarises the Ministry s activities in these areas in 2003/04. Reducing Inequalities The Ministry of Justice contributes to reducing inequalities in New Zealand society through the provision of policy advice on justice issues ranging from human rights to family law, legal aid, crime prevention and criminal justice matters. Underpinning the advice provided is a focus on disadvantaged groups and gender inequality. The Ministry, along with the other justice sector agencies, also contributes to reducing inequalities through initiatives to achieve the justice sector outcomes of safer communities and a fairer, more credible and more effective justice system. Crime and victimisation are not evenly distributed in the community. Some groups are more prone to committing crime and/or being victimised by crime than others. These groups include Mäori and Pacific peoples and lower socio-economic communities. Crime reduction strategies at central government and local community level need to target these groups. The Ministry s 2003/2004 report on reducing inequalities therefore focuses on two aspects: crime prevention policies and programmes targeting at-risk communities and groups; and policies and programmes that reduce inequalities and improve respect for rights and the law. Crime prevention policies and programmes targeting at-risk communities and groups Key activities in 2003/04 included the following. Funding nine crime prevention project areas and Safer Community Councils for activities contributing to the priority areas outlined in the Crime Reduction Strategy, including funding for specific Mäori and Pacific initiatives. Funding 19 community-managed restorative justice programmes. Six of these programmes were delivered by iwi and Mäori community providers and receive mainly Mäori referrals. In a joint initiative with the New Zealand Police, delivering 14 programmes aimed at reducing offending by youth and/or general violence. Funds were distributed to five high-crime areas in Northland, Auckland, Counties Manukau, Hastings and Christchurch. Early results indicate that there have been reductions in the level of youth offending. The Te Ärai Taihara o Counties-Manukau Project project provided a programme manager, and delivered three programmes to address offending by Mäori in Counties Manukau. Sixty-three of the 65 Safer Community Councils which included four iwi and three Pacific-based councils continued to operate. Evaluating a target hardening pilot programme to prevent repeat burglary of lower socio-economic households and increase victims sense of security. The evaluation found that the programme increased victims feelings of security, but was inconclusive as to whether it prevented repeat burglaries. Reviewing the Mahi Tahi Trust s New Life Akoranga programme that aims to help prison inmates and their whanau discover traditional Mäori principles, values and disciplines. It is funded by the Department of Corrections. The review found the programme had a positive impact on inmate behaviours and attitudes however, there was no evidence to establish that, on its own, the programme can reduce re-offending. MINISTRY OF JUSTICE ANNUAL REPORT

28 PART 1 YEAR IN REVIEW Policies and programmes that reduce inequalities and improve respect for rights and the law Key activities in 2003/04 included the following. Ongoing work by the Office of Treaty Settlements to administer the negotiation and settlement of Treaty grievances on behalf of the Crown. Consulting with Mäori and producing a publication Guardianship, Custody and Access: Mäori Perspectives and Experiences to inform policy decisions in relation to the Care of Children Bill. The Bill modernises the legal framework for guardianship and custody of, and access to, children and will also help parents, families and children by removing discriminatory provisions that are barriers to families. Co-ordinating public sector input into the development of the New Zealand Action Plan for Human Rights. The plan will establish government goals in respect of human rights. Providing support for the Coroners Amendment Bill that modernises and restructures the current coronial regime. The Bill includes improving the regard taken of cultural values and beliefs, particularly of Mäori. Providing support for the Civil Union Bill that will establish civil union as a new legal status for different and same-sex couples. The Relationships (Statutory References) Bill will amend legislation to ensure laws apply equally to marriage, civil union and different and same-sex de facto couples. Funding Overall funding provided for activities contributing to reducing inequalities is included in the Vote Justice and Vote Treaty Negotiations baseline budgets. Disability Strategy The Ministry has continued to contribute towards the overall achievement of the government s Disability Strategy by working to integrate disability issues into its work programme and activities. Key activities in 2003/04 included the following. Legislative initiatives Supporting the review of the Crimes Act 1961 to ensure better protection for persons with significant impairments from sexual violation and exploitation (cognisant of the fact that these people may consent to sexually intimate relationships). Supporting the Criminal Procedure (Mentally Impaired Persons) Act 2003 that reforms Part 7 of the Criminal Justice Act 1985 to apply equally to intellectually disabled and mentally ill defendants and offenders. Supporting the New Zealand Sign Language Bill to give recognition to New Zealand Sign as an official language that can be used in the courts. Reviewing changes arising from the Government s acceptance of recommendations in the Law Commission report Protections Some Disadvantaged People May Need to ensure that the legislation clearly defines the scope of court powers to make personal orders and provides adequate safeguards for their use. Action plans Co-ordinating the Government response to the New Zealand Action Plan on Human Rights to increase the understanding of human rights issues (including disability issues) among policy makers and enhance the likelihood that these factors will become integral to the policy process. Developing an action plan to improve the level of service provided by the Chief Electoral Office to voters with disabilities at the next general election. 28 MINISTRY OF JUSTICE ANNUAL REPORT

29 Ministry facilities and services As buildings were upgraded or replaced, providing facilities that fully comply with section 47(a) of the Building Act 1991, which refers to the disabled access code (NZS 4121) to ensure court facilities are disability friendly. From 1 April 2004, publishing all new information on the Ministry s website to meet the State Services Commission s E-Government Web Guidelines to enable quick and easy reading by all people. Ministry staff Instigating a review of Human Resources policies and practices to ensure that they effectively meet the needs of employees with disability issues. Relationships with Community, Voluntary and Tangata Whenua Organisations The Ministry s activities and services involve a range of stakeholders and the Ministry is committed to working effectively with community, volunteer and tangata whenua organisations as part of achieving its outcomes. The Ministry complies with the relevant requirements of the Statement of Government Intentions for an Improved Community Government Relationship. Specifically, in 2003/04: The Ministry was guided by the Crime Reduction Strategy 2001, which identified specific groups within the community for whom targeted interventions needed to be designed; The community government relationship has been a focus of aspects of the Ministry s crime prevention work; and The Ministry worked with a wide range of community and Non-Governmental Organisations in both policy and other operational areas. Practical examples of how the Ministry works with community, voluntary and tangata whenua organisations include the following. Crime Prevention Unit Community Advisors working with iwi/runanga, Pacific peoples and community groups. Providing some funding, support, monitoring and evaluation of community youth projects, restorative justice projects and neighbourhood-based safety projects throughout New Zealand all of which are delivered by runanga or urban/charitable trusts. Working with the Ministry of Social Development to implement Te Rito New Zealand Family Violence Prevention Strategy. In consultation with the community developing a policy framework for the use of restorative justice. A pilot restorative justice project is running in four courts. Operating the court-based Youth Pacific Liaison Service. MINISTRY OF JUSTICE ANNUAL REPORT

30

31 Part 2 Financial Summary and Service Performance

32

33 Part 2 Financial Summary and Service Performance Financial Summary Statement of Responsibility Audit Report Statement of Accounting Policies Financial Statements Notes to the Financial Statements Non-departmental Statements and Schedules Notes to the Non-departmental Schedules Service Performance Statement of Service Performance Vote Justice Vote Treaty Negotiations Vote Courts MINISTRY OF JUSTICE ANNUAL REPORT

34 PART 2 FINANCIAL SUMMARY Statement of Responsibility In accordance with sections 35 and 37 of the Public Finance Act 1989, I am responsible as Chief Executive and Secretary for Justice for the preparation of the Ministry s financial statements and the judgements made in the process of producing those statements. I am responsible for establishing and maintaining a system of internal control procedures that provides reasonable assurance as to the integrity and reliability of financial reporting. In my opinion, these financial statements fairly reflect the financial position and operations of the Ministry for the year ended 30 June Signed Counter signed Belinda Clark Chief Executive and Secretary for Justice Glenn McStay Chief Financial Officer 30 September September MINISTRY OF JUSTICE ANNUAL REPORT

35 Audit Report To the Readers of the Ministry of Justice s Financial Statements FOR THE YEAR ENDED 30 JUNE 2004 The Auditor-General is the auditor of the Ministry of Justice (the Ministry). The Auditor-General has appointed me, JR Smaill, using the staff and resources of Audit New Zealand, to carry out the audit of the financial statements of the Ministry, on his behalf, for the year ended 30 June Unqualified opinion In our opinion the financial statements of the Ministry on pages 37 to 98: comply with generally accepted accounting practice in New Zealand; and fairly reflect: the Ministry s financial position as at 30 June 2004; the results of its operations and cash flows for the year ended on that date; its service performance achievements measured against the performance targets adopted for the year ended on that date; and the assets, liabilities, revenues, expenses, contingencies, commitments and trust monies managed by the Ministry on behalf of the Crown for the year ended 30 June The audit was completed on 30 September 2004, and is the date at which our opinion is expressed. The basis of the opinion is explained below. In addition, we outline the responsibilities of the Chief Executive and the Auditor, and explain our independence. Basis of opinion We carried out the audit in accordance with the Auditor- General s Auditing Standards, which incorporate the New Zealand Auditing Standards. We planned and performed our audit to obtain all the information and explanations we considered necessary in order to obtain reasonable assurance that the financial statements did not have material misstatements, whether caused by fraud or error. Material misstatements are differences or omissions of amounts and disclosures that would affect a reader s overall understanding of the financial statements. If we had found material misstatements that were not corrected, we would have referred to them in the opinion. Our audit involved performing procedures to test the information presented in the financial statements. We assessed the results of those procedures in forming our opinion. Audit procedures generally include: determining whether significant financial and management controls are working and can be relied on to produce complete and accurate data; verifying samples of transactions and account balances; performing analyses to identify anomalies in the reported data; reviewing significant estimates and judgements made by the Chief Executive; confirming year-end balances; determining whether accounting policies are appropriate and consistently applied; and determining whether all financial statement disclosures are adequate. We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements. We evaluated the overall adequacy of the presentation of information in the financial statements. We obtained all the information and explanations we required to support the opinion above. MINISTRY OF JUSTICE ANNUAL REPORT

36 PART 2 FINANCIAL SUMMARY Responsibilities of the Chief Executive and the Auditor The Chief Executive is responsible for preparing financial statements in accordance with generally accepted accounting practice in New Zealand. Those financial statements must fairly reflect the financial position of the Ministry as at 30 June They must also fairly reflect the results of its operations and cash flows and service performance achievements for the year ended on that date. In addition, they must fairly reflect the assets, liabilities, revenues, expenses, contingencies, commitments and trust monies managed by the Ministry on behalf of the Crown for the year ended 30 June The Chief Executive s responsibilities arise from the Public Finance Act We are responsible for expressing an independent opinion on the financial statements and reporting that opinion to you. This responsibility arises from section 15 of the Public Audit Act 2001 and section 38(1) of the Public Finance Act Independence When carrying out the audit we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the Institute of Chartered Accountants of New Zealand. Other than the audit, we have no relationship with or interests in the Ministry. JR Smaill Audit New Zealand On behalf of the Auditor-General Wellington, New Zealand 36 MINISTRY OF JUSTICE ANNUAL REPORT

37 Statement of Accounting Policies FOR THE YEAR ENDED 30 JUNE 2004 Reporting Entity The Ministry of Justice (the Ministry) was established as a result of the merger of the Department for Courts and Ministry of Justice on 1 October The Ministry is a government department as defined by section 2 of the Public Finance Act The financial information for the year ended 30 June 2004 includes the financial information for the former Department for Courts since the merger date, that is, for the nine month period from 1 October 2003 to 30 June 2004 and 12 months of information for the Ministry of Justice, that is for the 12 month period from 1 July 2003 to 30 June The comparative values for 30 June 2003 are those of the Ministry of Justice prior to the merger and do not include the financial information for the former Department for Courts. In addition, the Ministry has reported on the Crown activities and trust monies that it administers. Measurement System The financial statements have been prepared on the basis of historical costs modified for land and buildings that are recorded at valuation as noted under Asset Revaluation. Transfer of Assets The Department for Courts merged with the Ministry of Justice on 1 October On that date, the assets and liabilities of the Department for Courts were transferred to the Ministry of Justice at their carrying values which was considered to equate to fair value. The net value of the assets transferred has been recognised as a capital contribution by the Crown, and is disclosed as Transfer Taxpayers Funds from Department for Courts in the Statement of Movement in Taxpayers Funds. The operating surplus from the Department for Courts of $6.971 million for the three months ended 30 September 2003 was not repaid to Treasury but merged into the newly formed Ministry s taxpayers funds as Operating Surplus from Department for Courts. Budget Estimates The Main Estimates included in the financial statements are those presented in the Budget night estimates (Main Estimates) for the Ministry of Justice (pre-merger). The Supplementary estimates figures included in the Ministry s Financial Statements cover the fullyear estimates of the former Ministry of Justice and nine months of the former Department for Courts plus any amendments made by the Supplementary Estimates. Property, Plant and Equipment Asset Revaluation Land and buildings are stated at fair value as determined by an independent registered valuer as at 30 June Fair value is determined using market-based evidence. Revaluations are performed on MINISTRY OF JUSTICE ANNUAL REPORT

38 PART 2 FINANCIAL SUMMARY a yearly basis although land and buildings are only physically inspected every three years. The last physical inspection was completed on 30 June These valuations were conducted by an independent valuer John Dunckley, BAgrCom, FNZPI, of DTZ New Zealand Limited, and are in accordance with the New Zealand Institute of Valuers Asset Valuation Standards. Any surplus on revaluation of a class of land or buildings is transferred directly to the applicable asset revaluation reserve within taxpayers funds unless it offsets a previous decrease in value recognised in the Statement of Financial Performance, in which case, it is recognised in the Statement of Financial Performance. A decrease in value relating to a class of land or buildings is recognised in the Statement of Financial Performance where it exceeds the surplus previously transferred to taxpayers funds. Asset Capitalisation Assets previously held by the Department for Courts were transferred to the new Ministry of Justice at net book value on 1 October 2003 which was considered to equate to fair value. The assets will continue to be depreciated over their remaining useful lives. All pre-merger assets held by the Ministry of Justice and all fixed assets post the merger are initially recorded at the cost of purchase. These are capitalised if purchased: individually and the cost price is greater than $3,000 as a group and the combined value is greater than $5,000. Capital work in progress is recognised as costs are incurred. Depreciation is not recorded until the asset is fully acceptance tested, operational and therefore capitalised. Depreciation Fixed assets are depreciated on a straight-line basis over their estimated useful lives after allowing for residual values (where appropriate by asset category). The estimated useful life of major asset categories is as follows: Asset category Asset life (years) Residual value Buildings Up to 50 Nil Fit-out/Leasehold Improvements Up to 15 Nil Furniture and fittings, office equipment 5 Nil Computer equipment 4 7 Nil Motor vehicles 5 30% of cost 38 MINISTRY OF JUSTICE ANNUAL REPORT

39 Land and work in progress are not depreciated. The total cost of work in progress is transferred to the appropriate asset class on its completion and then depreciated accordingly. Leasehold improvements are depreciated over the remaining life of the lease or the estimated remaining lives of the improvements, whichever is shorter. Disposal of Property, Plant and Equipment Where property, plant or equipment is disposed of, the gain or loss recognised in the Statement of Financial Performance is calculated as the difference between the sale price and the carrying amount. If an asset is sold that has contributed to the revaluation reserve, the related portion of the reserve is transferred to the general fund within taxpayers funds. Cost Allocation The Ministry derives the costs of outputs using a cost allocation system that is outlined below. Cost Allocation Policy Direct costs are charged to output classes as and when they occur. Indirect costs are accumulated and allocated to output classes based on cost drivers such as assessment of personnel time, building area occupied, asset utilisation, which reflect an appropriate measure of resource consumption usage. Costs identified to overhead areas are accumulated and allocated to output classes based on resource consumption usage where possible (such as full-time equivalent staff numbers) or in proportion to the direct and indirect charges made to the output class. Criteria for Direct and Indirect Costs Direct costs are those that can be directly attributable to an output. Indirect costs are those that cannot be identified in an economically feasible manner to a specific output. For the year ended 30 June 2004 direct costs accounted for 83 percent (2002/03, 74 percent) of the Ministry s costs. Commitments Commitments are future payments and expenditure to be incurred on capital and operating contracts that have been entered into at balance date and are valued at known cost. Contingent Liabilities Contingent liabilities are disclosed at the point at which the contingency is evident. Accounts Receivable Receivables are recorded at estimated realisable value, after providing for doubtful and uncollectable debts. MINISTRY OF JUSTICE ANNUAL REPORT

40 PART 2 FINANCIAL SUMMARY Revenue Recognition Crown Revenue is recognised on the basis of the supply of outputs to the Crown. Department and Other Revenue is from the supply of goods and services to other government departments and third parties and is recognised when the goods and services have been provided. Income Tax The Ministry is exempt from the payment of income tax in terms of the Income Tax Act Accordingly, no charge for income tax has been provided for. Goods and Services Tax (GST) The Statement of Non-departmental and Departmental Expenditure and Appropriations are inclusive of GST. The GST expense within total appropriations is included based on revenue earned in accordance with Treasury instructions. The Statement of Financial Position is exclusive of GST, except for accounts payable and accounts receivable, which are GST inclusive. All other statements are GST exclusive. The amount of GST owed to or from Inland Revenue Department at balance date, being the difference between Output GST and Input GST, is included in accounts payables or accounts receivables as appropriate. Employee Entitlements Provision is made in respect of the Ministry s liability for annual, long service and retirement leave. Annual leave has been calculated on an actual entitlement basis at current rates of pay while other provisions have been calculated on an actuarial basis, based on the present value of expected future entitlements. Financial Instruments The Ministry is party to financial instruments as part of its normal operations. These include bank accounts, debtors, creditors and foreign currency forward contracts. Apart from foreign currency forward contracts, all financial instruments are recognised in the Statement of Financial Position and all revenues and expenses in relation to financial instruments are recognised in the Statement of Financial Performance. Foreign Currency Foreign currency transactions are converted into New Zealand dollars at the exchange rate at the date of the transaction. The Ministry sometimes enters into foreign currency forward contracts to reduce exposure to fluctuations in foreign currency exchange rates. Where a forward contract has been used to establish the price of a transaction, the forward rate specified in that foreign exchange contract is used to convert that transaction to New Zealand dollars. Consequently, no exchange gain or loss resulting 40 MINISTRY OF JUSTICE ANNUAL REPORT

41 from the difference between the forward exchange contract rate and the spot exchange rate on date of settlement is recognised. Monetary assets and liabilities are translated to New Zealand dollars at the closing exchange rate. The resulting unrealised exchange gain or loss is recognised in the Statement of Financial Performance. Other exchange gains or losses, whether realised or unrealised, are recognised in the Statement of Financial Performance in the period to which they relate. Leases Finance Leases Finance leases are leases that effectively transfer to the Ministry substantially all the risks and benefits incidental to ownership of the leased item. These leases are capitalised at the lower of the fair value of the asset or the present value of the minimum lease payments. The leased asset and corresponding lease liabilities are recognised in the Statement of Financial Position. The leased assets are depreciated over the period the Ministry is expected to benefit from their use. Operating Leases Operating lease payments, where the lessors effectively retain substantially all the risks and benefits of ownership of the leased items, are classified as operating leases. Operating lease expenses are recognised on a systematic basis over the period of the lease. Taxpayers Funds This is the Crown s net investment in the Ministry. Changes in Accounting Policy This is the first period of operation of the newly merged Ministry. The accounting policies stated above have been consistently applied throughout the period and correspond to the accounting policies specified in the Statement of Intent for the Ministry of Justice for the year ended 30 June 2004 and, where applicable, the Statement of Intent for the Department of Courts for the year ended 30 June MINISTRY OF JUSTICE ANNUAL REPORT

42 PART 2 FINANCIAL SUMMARY Statement of Financial Performance FOR THE YEAR ENDED 30 JUNE 2004 Main Supp. Actual Actual Estimates Estimates 30 June 30 June 30 June 30 June ($000) ($000) ($000) ($000) Revenue Notes Crown 34, , ,988 46,604 Department - 2,333 2,392 - Other 1-22,251 23,526 - Total Operating Revenue 34, , ,906 46,604 Expenses Personnel 14,696 93,748 91,369 23,443 Operating 2 17,867 76,808 78,170 21,120 Depreciation 3 1,731 26,252 24, Capital Charge ,251 22, Total Output Expenses 34, , ,759 45,842 Net Surplus/(Deficit) - (5,893) (3,853) 762 The accompanying accounting policies and notes form part of these financial statements. 42 MINISTRY OF JUSTICE ANNUAL REPORT

43 Statement of Financial Position AS AT 30 JUNE 2004 Main Supp. Actual Actual Estimates Estimates as at as at 30 June 30 June 30 June 30 June ($000) ($000) ($000) ($000) Assets Notes Current Assets Cash 7,679 31,463 35,019 5,817 Accounts Receivable ,839 1, Prepayments - 1, Total Current Assets 8,529 34,373 37,707 6,371 Non-current Assets Property, Plant and Equipment 6 3, , ,434 3,125 Total Non-current Assets 3, , ,434 3,125 Total Assets 12, , ,141 9,496 Liabilities and Taxpayers Funds Current Liabilities Accounts Payable and Provisions 7 6,565 10,124 10,348 1,498 Finance Leases GST Payable , Accrued Expenses - 16,521 12,905 2,226 Provision for Repayment of Surplus 9-1,138 3, Provision for Employee Entitlements 10 1,117 5,535 5,790 1,035 Total Current Liabilities 7,682 34,271 33,785 5,944 Non-current Liabilities Finance Leases Provision for Employee Entitlements ,164 4, Total Non-current Liabilities 216 4,164 5, Total Liabilities 7,898 38,435 38,838 6,108 Taxpayers Funds General Funds 4, , ,309 3,388 Revaluation Reserve ,994 - Total Taxpayers Funds 4, , ,303 3,388 Total Liabilities and Taxpayers Funds 12, , ,141 9,496 The accompanying accounting policies and notes form part of these financial statements. MINISTRY OF JUSTICE ANNUAL REPORT

44 PART 2 FINANCIAL SUMMARY Statement of Cash Flows FOR THE YEAR ENDED 30 JUNE 2004 Main Supp. Actual Actual Estimates Estimates 30 June 30 June 30 June 30 June ($000) ($000) ($000) ($000) Cash Flows from Operating Activities Cash was Provided from: Supply of Outputs to the Crown 34, , ,274 46,487 Supply of Outputs to Departments - 5,397 5,232 - Supply of Outputs to Others - 21,693 23,040 - Total Cash Flows from Operating Activities 34, , ,546 46,487 Cash was Applied to: Payments to Employees (20,416) (86,030) (91,060) (23,556) Payments to Suppliers (12,147) (86,856) (71,376) (23,162) Capital Charge (361) (22,251) (30,634) (288) Net GST Paid - - (1,008) (68) Total Cash Applied for Operating Activities (32,924) (195,137) (194,078) (47,074) Net Cash Flows from Operating Activities 1,731 27,851 28,468 (587) Cash Flows from Investing Activities Cash was Provided from: Sale of Property, Plant and Equipment Cash was Applied to: Purchase of Property, Plant and Equipment (3,043) (32,774) (29,232) (1,436) Net Cash Flows from Investing Activities (3,043) (32,774) (29,073) (1,436) Cash Flows from Financing Activities Cash was Provided from: Capital Contribution 1,022 18,392 18,392 - Transfer of Cash from Former Department for Courts - 21,122 21,122 - Cash was Applied to: Repayment of Surplus - (8,945) (9,707) (929) Net Cash Flows from Financing Activities 1,022 30,569 29,807 (929) Net Increase/(Decrease) in Cash Held (290) 25,646 29,202 (2,952) Cash as at 1 July 7,969 5,817 5,817 8,769 Closing Cash as at 30 June 7,679 31,463 35,019 5,817 The accompanying accounting policies and notes form part of these financial statements. 44 MINISTRY OF JUSTICE ANNUAL REPORT

45 Reconciliation of Net Operating Surplus/(Deficit) to Net Operating Cash Flows FOR THE YEAR ENDED 30 JUNE 2004 Main Supp. Actual Actual Estimates Estimates 30 June 30 June 30 June 30 June ($000) ($000) ($000) ($000) Surplus/(Deficit) from Statement of Financial Performance - (5,893) (3,853) 762 Add/(Deduct) Non-cash Items Depreciation 1,731 26,252 24, Fixed Asset Write-offs Non-current Employee Entitlements - - 4,831 (52) Total Non-cash Items 1,731 26,257 29, Add/(Deduct) Movements in Working Capital Items (Increase)/Decrease in Accounts Receivable - 9,784 9, (Increase)/Decrease in Prepayments - 2,825 3,034 - Increase/(Decrease) in Accounts Payable and Provisions - 2,353 3,997 (1,637) Increase/(Decrease) in GST Payable - (985) (664) - Increase/(Decrease) in Provision for Employee Entitlements - (777) (4,522) (82) Increase/(Decrease) in Accrued Expenses - (5,713) (9,323) (781) Movements in Working Capital - 7,487 2,319 (2,321) Add/(Deduct) Items Classified as Investing Activities Loss/(Gain) on Sale of Property, Plant and Equipment Movements in Investing Activities Net Cash Flows from Operating Activities 1,731 27,851 28,468 (587) The accompanying accounting policies and notes form part of these financial statements. MINISTRY OF JUSTICE ANNUAL REPORT

46 PART 2 FINANCIAL SUMMARY Statement of Movement in Taxpayers Funds FOR THE YEAR ENDED 30 JUNE 2004 Main Supp. Actual Actual Estimates Estimates 30 June 30 June 30 June 30 June ($000) ($000) ($000) ($000) Notes Taxpayers Funds as at 1 July 3,395 3,388 3,388 3,388 Net Operating Surplus/(Deficit) - (5,893) (3,853) 762 Increase/(Decrease) in Revaluation Reserve ,994 - Total Recognised Revenues and Expenses for the Year - (5,893) 9, Capital Contributions from the Crown 12 1,022 18,392 18,392 - Operating Surplus from Department for Courts 13-6,971 6,971 - Provision for Repayment of Surplus to the Crown - (1,078) (3,118) (762) Transfer Taxpayers Funds from Department for Courts , ,909 - Transfer of Fines Debt to the Crown 13 - (84,380) (84,380) - Total 1, , ,774 (762) Taxpayers Funds as at 30 June 4, , ,303 3,388 The accompanying accounting policies and notes form part of these financial statements. 46 MINISTRY OF JUSTICE ANNUAL REPORT

47 Statement of Commitments AS AT 30 JUNE 2004 Actual Actual 30 June 30 June ($000) ($000) Capital Commitments Less than One Year 2,206 1,076 Total Capital Commitments 2,206 1,076 Operating Lease Commitments Non-Cancellable Accommodation Leases Less than One Year 12,123 1,147 One to Two Years 6,653 - Two to Five Years 16,098 - More than Five Years 28,673 - Total Operating Lease Commitments Non-Cancellable Accommodation Leases 63,547 1,147 Operating Lease Commitments Less than One Year One to Two Years Two to Five Years 30 7 More than Five Years - - Total Operating Lease Commitments Other Operating Commitments Less than One Year 1, One to Two Years Two to Five Years 1,226 - More than Five Years Total Other Operating Commitments 4, Total Commitments 70,055 2,851 The Ministry has long-term lease commitments on a number of premises throughout New Zealand. These annual lease payments are subject to regular reviews, ranging from three to 10 years, and comprise $ million of total operating commitments (2002/03: $1.220 million former Ministry of Justice). The Ministry has entered into non-cancellable contracts for telephone network services, computer maintenance and other contracts for service. These contracts totalled $4.184 million as at 30 June 2004 (2002/03: $0.555 million former Ministry of Justice). The accompanying accounting policies and notes form part of these financial statements. MINISTRY OF JUSTICE ANNUAL REPORT

48 PART 2 FINANCIAL SUMMARY Statement of Contingent Liabilities AS AT 30 JUNE 2004 Actual Actual as at as at 30 June 30 June ($000) ($000) Legal Proceedings and Disputes Quantifiable 1,397 - Total Contingent Liabilities 1,397 - The claims relate primarily to false imprisonment, personal grievances, and loss of income (nil as at 30 June 2003). The accompanying accounting policies and notes form part of these financial statements. 48 MINISTRY OF JUSTICE ANNUAL REPORT

49 Statement of Departmental Expenditure and Appropriations FOR THE YEAR ENDED 30 JUNE 2004 (FIGURES ARE GST INCLUSIVE WHERE APPLICABLE) Actual Approp n* Voted 30 June 30 June ($000) ($000) Vote Justice Ministerial Servicing and Management of Non-departmental Output Classes 2,077 2,082 Policy Advice 14,532 14,703 Management of the Parliamentary Electoral System 3,037 3,210 Crime Prevention and Community Safety 1,534 1,670 Total Vote Justice 21,180 21,665 Vote Treaty Negotiations Policy Advice: Treaty Negotiations 7,770 7,794 Representation: Waitangi Tribunal 2,583 2,780 Land Portfolio Management 5,205 5,272 Total Vote Treaty Negotiations 15,558 15,846 Vote Courts Policy Advice and Ministerial Servicing 1,714 1,743 Collection or Enforcement of Fines and Civil Debts 43,655 44,563 Case Management Criminal 77,776 78,069 Case Management Civil 52,638 52,776 Case Management Environment Court, Tribunals and Other Authorities 15,158 15,307 Mäori Land Information and Case Management 9,843 9,866 Support to the Waitangi Tribunal 5,845 5,865 Total Vote Courts 206, ,189 Total 243, ,700 Appropriation for Capital Contribution Capital Investment 18,392 18,392 * This includes adjustments made in the Supplementary Estimates and transfers under section 5 of the Public Finance Act 1989 as shown in the table on page 50. The accompanying accounting policies and notes form part of these financial statements. MINISTRY OF JUSTICE ANNUAL REPORT

50 PART 2 FINANCIAL SUMMARY Transfers under Section 5 of the Public Finance Act 1989 FOR THE YEAR ENDED 30 JUNE 2004 (FIGURES ARE GST INCLUSIVE) Supp. Section 5 Final Estimates transfers Approp n ($000) ($000) ($000) Vote Justice Ministerial Servicing and Management of Non-departmental Output Classes 2,082-2,082 Policy Advice 14,856 (153) 14,703 Management of the Parliamentary Electoral System 3, ,210 Crime Prevention and Community Safety 1,670-1,670 Total Vote Justice 21,665-21,665 Vote Courts Policy Advice and Ministerial Servicing 1,843 (100) 1,743 Collection or Enforcement of Fines and Civil Debts 44,563-44,563 Case Management Criminal 78,469 (400) 78,069 Case Management Civil 51,776 1,000 52,776 Case Management Environment Court, Tribunals and Other Authorities 15,807 (500) 15,307 Mäori Land Information and Case Management 9,866-9,866 Support to the Waitangi Tribunal 5,865-5,865 Total Vote Courts 208, ,189 Vote Justice Non-departmental Output Classes Policy Advice 3,347 (130) 3,217 Provision of Electoral Services 12, ,832 Total Vote Justice Non-departmental Output Classes 16,049-16,049 The accompanying accounting policies and notes form part of these financial statements. 50 MINISTRY OF JUSTICE ANNUAL REPORT

51 Statement of Non-departmental Expenditure and Appropriations FOR THE YEAR ENDED 30 JUNE 2004 (FIGURES ARE GST INCLUSIVE WHERE APPLICABLE) Actual Approp n* Voted 30 June 30 June ($000) ($000) Vote Justice Policy Advice Law Commission 3,347 3,217 Equity Promotion and Protection Services 12,625 12,625 Administration of Legal Services 12,384 12,384 Provision of and Access to Legal Services 83,572 88,068 Provision of Electoral Services 12,832 12,832 Support for Victims 3,055 3,055 Crime Prevention and Community Safety Programmes 5,654 5,912 Provision of Protective Fiduciary Services 4,950 4,950 Intensive Intervention for Serious Recidivist Young Offenders - 75 Total Vote Justice 138, ,118 Vote Treaty Negotiations Interest Payments on Settlements 4,094 4,158 Waikato Tainui Interest Ancillary Claims Trust Advance Payment Against Interest Cash in Advance Payment Total Vote Treaty Negotiations 5,177 5,881 Purchase or Development of Capital Assets by the Crown Vote Treaty Negotiations Land, Stock, Plant Purchases 4,533 10,000 Total 4,533 10,000 Multi-year Appropriation: Vote Treaty Negotiations: Other Expenses to be Incurred on Behalf of the Crown Historical Treaty of Waitangi Settlements 30,307 31,508 Total 30,307 31,508 Total Vote Treaty Negotiations 40,017 47,389 continued on following page * This includes adjustments made in the Supplementary Estimates and transfers under section 5 of the Public Finance Act The accompanying accounting policies and notes form part of these financial statements. MINISTRY OF JUSTICE ANNUAL REPORT

52 PART 2 FINANCIAL SUMMARY Statement of Non-departmental Expenditure and Appropriations FOR THE YEAR ENDED 30 JUNE 2004 (FIGURES ARE GST INCLUSIVE WHERE APPLICABLE) continued from previous page Actual Approp n* Voted 30 June 30 June ($000) ($000) Vote Courts Other Expenses to be Incurred by the Crown, Annual Appropriations Abortion Supervisory Committee Certifying Consultants Fees 3,058 2,892 Assistance to Victims of Crime - 45 Children, Young Persons, and Their Families Professional Costs 5,767 5,875 Coroner Related Fees and Expenses Coroner Directed Post-mortems 4,734 5,022 Costs in Criminal Cases Family Court Counselling and Professional Services 17,651 18,190 Fees Associated with Orders Under the Domestic Violence Act ,947 3,392 Judicial Review Costs Justices of the Peace Association Medical and Other Professional Services 1,262 1,390 Motor Vehicle Disputes Tribunal Adjudicator Remuneration and Assessors Costs Offenders and Civil Legal Aid Personal Protection Property Rights Costs 1, Representations for Blood Sampling - 11 Witness Fees and Expenses 1,677 2,117 Care of Children Bill Costs Youth Court Professional Fees 4,103 3,658 Total Other Expenses, Annual Appropriations 43,902 46,360 Other Expenses to be Incurred by the Crown, Other Appropriations Judges Salaries and Allowances 40,365 41,065 Total Non-departmental Expenditure and Appropriations 262, ,932 * This includes adjustments made in the Supplementary Estimates and transfers under section 5 of the Public Finance Act The accompanying accounting policies and notes form part of these financial statements. 52 MINISTRY OF JUSTICE ANNUAL REPORT

53 Statement of Unappropriated Expenditure FOR THE YEAR ENDED 30 JUNE 2004 Departmental Due to a procedural issue beyond the control of the Ministry, the Ministry has incurred unappropriated expenditure of $ million. This occurred as a result of a capital withdrawal from the former Department for Courts and a corresponding capital contribution into the merged Ministry of Justice not being formally actioned through the Supplementary Estimates process. (Nil as at 30 June 2003.) Non-departmental Actual Actual 30 June 30 June ($000) ($000) Vote Courts Other Expenses to be Incurred by the Crown Personal Protection Property Rights Costs 51 - Youth Court Professional Fees Abortion Supervisory Committee Certifying Consultants Fees Total Non-departmental Unappropriated Expenditure Vote Courts Vote Justice Non-Departmental Output Classes Policy Advice Total Non-departmental Unappropriated Expenditure Vote Justice Total Non-departmental Unappropriated Expenditure Approval of the above unappropriated expenditure has been obtained under section 12 of the Public Finance Act Vote Courts; Non-departmental: Personal Property Protection Rights Costs This expenditure is volume driven. The costs incurred arise from the courts ordering specialist reports; from the court appointing counsel for the subject person (if they are not represented); and from the court appointing counsel to assist. This expenditure is unavoidable in its nature. Appropriation was exceeded due to the increased number of appointments of counsel for the subject person and increased use of counsel to assist the court. The accompanying accounting policies and notes form part of these financial statements. MINISTRY OF JUSTICE ANNUAL REPORT

54 PART 2 FINANCIAL SUMMARY Vote Courts; Non-departmental: Youth Court Professional Fees This expenditure is volume driven. The Youth Drug Court pilot at Christchurch District Court requires youth offenders to appear before the Court more frequently and has also increased the level of monitoring of these offenders. Vote Courts; Non-departmental: Abortion Supervisory Committee Certifying Consultants Fees This is to fund fees payable to Certifying Consultants for certification under section 33 of the Contraception, Sterilisation, and Abortion Act A forecast increase in expenditure was not provided for in the Supplementary Estimates as volumes were expected to remain at a similar level as 2002/03. There has, however, been an increase in volumes and therefore payments in the 2003/04 financial year. Vote Justice; Non-departmental: Policy Advice A section 5 fiscally neutral transfer was requested and approved from the Non-departmental Output Class Policy Advice to the Provision of Electoral Services output class to support the additional costs incurred for the Te Tai Hauauru by-election. The transfer should have been from the departmental Output Class Policy Advice resulting in this unappropriated expenditure. The accompanying accounting policies and notes form part of these financial statements. 54 MINISTRY OF JUSTICE ANNUAL REPORT

55 Statement of Trust Monies Administered on Behalf of the Crown FOR THE YEAR ENDED 30 JUNE 2004 The following trust money was administered on behalf of the Crown under Part VII of the Public Finance Act The statement shows the opening and closing trust balances, and the movements during the year. Election Candidate Deposits Trust Account This trust account holds deposits received from candidates for Parliamentary elections. Court Law Trust Account This trust account holds deposits made by persons filing for action in the District Court, the High Court or the Court of Appeal. There are 68 individual Law Trust accounts, which are managed by the individual court and collections offices. Fines Trust Account This trust account holds deposits for all fines collected and associated fees prior to disbursement back to the Crown, the Ministry (Vote Courts output classes 2 and 3), local authorities or victims. Fines collected are court-imposed fines (including reparations) and infringement fines collected on behalf of Police, local authorities, and other prosecuting agencies. Mäori Land Court Trust Account This trust account holds money received relating to the filing of an application for confirmation by the court of a resolution for the sale or lease of land. This account is also used for holding security for costs on appeals. Foreign Currency Trust Account This trust account holds foreign currency until completion of any pending admiralty cases as directed by a High Court. TRUST ACCOUNTS Election Court Law Fines Trust Mäori Land Foreign Candidate Court Currency Deposits ($000) ($000) ($000) ($000) ($000) Opening Cash Balance Transfers from Department for Courts - 7,725 21, Contributions 2 17, , Distributions - (14,407) (131,269) (12) - Closing Cash Balance 2 10,974 38, The accompanying accounting policies and notes form part of these financial statements. MINISTRY OF JUSTICE ANNUAL REPORT

56 PART 2 FINANCIAL SUMMARY Guarantees and Indemnities Guarantees and Indemnities are disclosed in accordance with FRS 15 Provisions, Contingent Liabilities and Contingent Assets. In addition, guarantees given under section 56 of the Public Finance Act 1989 are disclosed in accordance with section 27(f) of the same Act. There are no Guarantees and Indemnities as at 30 June 2004 (nil as at 30 June 2003). 56 MINISTRY OF JUSTICE ANNUAL REPORT

57 Notes to the Financial Statements Note 1: Revenue Other Actual Actual 30 June 30 June ($000) ($000) Filing Fees 14,127 - Other 9,347 - Interest 52 - Total Revenue Other 23,526 - Note 2: Operating Expenses Actual Actual 30 June 30 June ($000) ($000) Consultancy 3,605 5,992 Professional Fees 16,365 - Fee for Audit of Financial Statements Rental Expense on Operating Lease 6,217 1,237 Treaty Settlement Costs 4,315 4,093 Loss on Sale of Property, Plant and Equipment Property, Plant and Equipment Write-offs 11 - Other Operating Costs 47,230 9,729 Total Operating Expenses 78,170 21,120 Property, Plant and Equipment Write-offs These include assets disposed of at nil value, which have been depreciated over their useful lives, but still had a remaining book value. It also includes costs associated with assets that are deemed to have no ongoing benefits. Note 3: Depreciation Actual Actual 30 June 30 June ($000) ($000) Buildings 2,658 - Fit-out/Leasehold Improvements 7, Computer Equipment 13, Furniture and Fittings, Office Equipment 1, Motor Vehicles Total Depreciation 24, MINISTRY OF JUSTICE ANNUAL REPORT

58 PART 2 FINANCIAL SUMMARY Note 4: Capital Charge The Ministry of Justice pays a capital charge to the Crown on its taxpayers funds as at 30 June and 31 December each year. The capital charge rate for the year ended 30 June 2004 was 8.5 percent (2002/03: 8.5 percent). Note 5: Debtors and Receivables Actual Actual 30 June 30 June ($000) ($000) Sundry Debtors 1, Travel Advances 93 - Total Debtors and Receivables 1, Note 6: Property, Plant and Equipment Cost or Accum. Carrying Cost or Accum. Carrying Valuation Dep n Amount Valuation Dep n Amount as at as at as at as at as at as at 30 June 30 June 30 June 30 June 30 June 30 June ($000) ($000) ($000) ($000) ($000) ($000) Land (at valuation) 70,139-70, Buildings (at valuation) 138, , Fit-out/Leasehold Improvements 66,525 (8,659) 57,866 2,438 (1,595) 843 Computer Equipment (at cost) 86,311 (16,425) 69,886 4,000 (2,942) 1,058 Computer Equipment Finance Lease (at net present value) Furniture and Fittings, Office Equipment (at cost) 4,528 (1,733) 2, (400) 119 Motor Vehicles (at cost) 3,122 (264) 2, (13) 15 Work in Progress (at cost) 12,740-12,740 1,090-1,090 Total 382,515 (27,081) 355,434 8,075 (4,950) 3,125 The Ministry has assets valued at $ million listed under the Historic Places Act 1993 (2002/03 nil), which are included in the assets above. The land and buildings were valued at fair value by DTZ New Zealand Limited as at 30 June MINISTRY OF JUSTICE ANNUAL REPORT

59 Note 7: Accounts Payable and Provisions Actual Actual 30 June 30 June ($000) ($000) Accounts payable 8,734 1,498 Provisions (note 7a) 1,614 - Total Accounts Payable and Provisions 10,348 1,498 7a Provisions Remun. Refurb. Related Restruct. Other Total 2003/04 ($000) ($000) ($000) ($000) ($000) Opening Balance Transfer from Department for Courts 100 1, ,338 Additional Provisions Made During the Period ,337 Charged Against Provision for the Period - (529) (120) (131) (780) Unused Amounts Reversed During the Period - (1,107) (44) (130) (1,281) Closing Balance ,614 Note 8: Finance Leases Actual Actual as at as at 30 June 30 June ($000) ($000) Current Liability Non-current Liability 58 - Total Finance Leases Liability Repayable as Follows Less than One Year One to Two Years 61 - Two to Five Years - - Beyond Five Years Future Finance Charges 17 - Recognised as a Liability The Ministry s leases were reviewed during the year with the result that one has been determined to be a finance lease. In accordance with SSAP 18 Accounting for Leases and Hire Purchase Contracts, the present value of future lease payments as at 30 June 2004 has been recognised as a liability and an MINISTRY OF JUSTICE ANNUAL REPORT

60 PART 2 FINANCIAL SUMMARY equivalent amount, representing the future service potential arising from the use of the equipment, has been recognised as an asset. The Ministry s liability in respect of future lease payments was previously included in the Statement of Commitments. As the recognition was effected as at 30 June 2004, the total rental payments for the year have been recognised in the Statement of Financial Performance and have not been apportioned between the principle and finance charge elements. Under the Public Finance Act 1989, entering into financing lease arrangements is deemed to be raising a loan, which requires the approval of the Minister of Finance. The Ministry has received the Minister s approval for this lease. The Ministry has recognised assets rented under finance lease arrangements for the first time as at 30 June Accordingly, there is no depreciation charge for this financial year. The Ministry s liability in respect of future lease payments is disclosed in Note 8. Note 9: Provision for Repayment of Surplus Actual Actual as at as at 30 June 30 June Notes ($000) ($000) Net Operating Surplus/(Deficit) (3,853) 762 Add: Other Expenses (not for Production of Outputs) - - Net Operating Surplus from Delivery of Outputs (3,853) 762 Gains on Revaluation Realised - - Transfer of Surplus from Department for Courts 13 6,971 - Total Provisions for Repayment of Surplus 3, Note 10: Provision for Employee Entitlements Actual Actual as at as at 30 June 30 June ($000) ($000) Current Liabilities Retirement and Long-service Leave Annual Leave 5, Total Current Liabilities 5,790 1,035 Non-current Liabilities Retirement and Long-service Leave 4, Total Non-current Portion 4, Total Provision for Employee Entitlements 10,785 1, MINISTRY OF JUSTICE ANNUAL REPORT

61 Note 11: Revaluation Reserve Land Buildings Total Land Buildings Total as at as at as at as at as at as at 30 June 30 June 30 June 30 June 30 June 30 June ($000) ($000) ($000) ($000) ($000) ($000) Revaluation Changes for Current Period 4,577 8,417 12, Closing Balance 4,577 8,417 12, Note 12: Capital Contribution from the Crown The Ministry of Justice received $ million in capital contribution (nil as at 30 June 2003) during the year summarised as follows. Capital Contribution as at 30 June 2004 ($000) Guardianship Review 228 Care of Children Bill 948 Case Management System 1,000 Assisting Tenancy Tribunal Judgment Creditors to Recover Judgment Debts 357 Private Investigators and Security Guards Act Extended Supervision of Child Sex Offenders 426 Fiscal Pressures with Vote Courts 5,000 Court House Replacements 1, New Initiative Supreme Court 8,528 Justice Sector Data Warehouse 322 Additional Treaty Negotiations Team 76 Total Capital Contributions from the Crown 18,392 Note 13: Taxpayers Funds The operating surplus from Department for Courts represents the 2004 surplus of $6.971 million for the former Department for Courts for the three months ended 30 September Under the State Sector Amendment Act 2003, the Department for Courts merged with the Ministry of Justice effective from 1 October Assets and Liabilities shown in the Statement of Financial Position, Commitments contained in the Statement of Commitments and Contingent Liabilities contained in the Statement of Contingent Liabilities were transferred to the Ministry of Justice at their carrying value which was considered to equate to fair value, as in the Closure Report for Department for Courts for the three months ended 30 September MINISTRY OF JUSTICE ANNUAL REPORT

62 PART 2 FINANCIAL SUMMARY The Cabinet Committee on Government Expenditure and Administration agreed to transfer all departmental fines-related debt to the Crown with effect from 1 October The Ministry is fully Crown funded for the provisions of fines enforcement and filing services from 1 October Note 14: Financial Instruments The Ministry is a party to financial instrument arrangements as part of its normal operations. These financial instruments include bank accounts, debtors and creditors. All financial instruments are recognised in the Statement of Financial Position and all revenues and expenses in relation to financial instruments are recognised in the Statement of Financial Performance. They are shown at their estimated fair value. Credit Risk In the normal course of its business, the Ministry incurs credit risk from transactions with financial institutions and the New Zealand Debt Management Office (NZDMO). The Ministry does not require any collateral or security to support financial instruments with financial institutions that the Ministry deals with, or with the NZDMO, as these entities have high credit ratings. For other financial instruments, the Ministry does not have significant concentrations of credit risk. Fair Value The fair value is equivalent to the carrying amount disclosed in the Statement of Financial Position. There were no foreign currency forward contracts at balance date. Currency Risk and Interest Rate Risk The Ministry has no significant exposure to interest rate risk or currency risk on its financial instruments. Note 15: Related Party Information The Ministry is a government department as defined by section 2 of the Public Finance Act The Government significantly influences the role of the Ministry as well as being its major source of revenue. The Ministry enters into some transactions with other government departments, Crown agencies and state-owned enterprises on an arm s length basis. These transactions are not considered to be related party transactions. Apart from those transactions described above, the Ministry has not entered into any related party transactions. 62 MINISTRY OF JUSTICE ANNUAL REPORT

63 Note 16: Major Budget Variations Against Supplementary Estimates Statement of Financial Performance The variance in Crown revenue relates to the approved in principle transfers to 2004/05 of Fines Collections at Airports, Tenancy Tribunal Creditors funding, and Baseline review funding. The increase in other revenue is mainly due to higher than forecasted filing fees revenue and tribunal revenue. Depreciation was lower due to less asset purchases. Statement of Financial Position The higher cash balance is mainly the result of capital injections to support asset purchases not being fully utilised. The increase in property, plant and equipment is mainly due to the increase in value resulting from the 2003/04 revaluation exercise. The Supplementary Estimates did not include any revaluation movements. Major Budget Variations Against Main Estimates The prime reason for the variations against the Main Estimates is the inclusion of Vote Courts activities for the nine months from 1 October 2003 to 30 June MINISTRY OF JUSTICE ANNUAL REPORT

64 PART 2 FINANCIAL SUMMARY Non-departmental Statements and Schedules FOR THE YEAR ENDED 30 JUNE 2004 The following Non-departmental Statements and Schedules record the expenses, revenue and receipts, assets and liabilities that the Ministry manages on behalf of the Crown. Statement of Accounting Policies Measurement and recognition rules applied in preparing non-departmental statements and schedules are consistent with generally accepted accounting practice and Crown accounting policies. These non-departmental balances are consolidated into the Crown Financial Statements and therefore readers of these statements and schedules should also refer to the Crown Financial Statements for 2003/04. Property, Plant and Equipment Land and buildings are stated at fair value as determined by independent registered valuers. Fair value is determined using market-based evidence. All major land and buildings (over $200,000) are revalued on a rolling basis over five years. Asset Revaluation The valuations in 2003/04 effective as at 30 June 2004, were conducted by the following independent valuers: - Monica Quirke, ANZIV, SNZP of Quotable Value (QV) - Alastair Pratt, ANZIV, SNZPI, of Middleton Valuation - Andrew Wisema, BAgrCom, MNZIPIM, SNZPI, ANZIV, of DTZ New Zealand Limited - Frank Hutchins, ANZIV, SNZPI, of Hutchins & Dick - Russel Garton, BAgrCom (Valuation & Farm Management), SNZPI, SNZIPIM, of Garton & Associates Northland - Stephen Bird, ANZIV, SNZPI, of Hobson White Limited, and - Martin Veale, ANZIV, SNZPI, of Telfer Young (Wellington) Limited and are in accordance with the New Zealand Institute of Valuers Asset Valuation Standards. Any surplus on revaluation of a class of land or buildings is transferred directly to the applicable property, plant and equipment revaluation reserve within the Crown s accumulated operating balance, unless it offsets a previous decrease in value recognised in the Statement of Financial Performance, in which case, it is recognised in the Statement of Financial Performance. A decrease in value relating to a class of land or buildings is recognised in the Statement of Financial Performance where it exceeds the surplus previously transferred to revaluation reserves. 64 MINISTRY OF JUSTICE ANNUAL REPORT

65 Depreciation The assets are initially recorded at the cost of purchase, or for land and improvements, the valuations. Improvements are depreciated on a straight line basis over their estimated useful lives 50 years. Schedule of Revenue and Receipts FOR THE YEAR ENDED 30 JUNE 2004 The schedule of receipts and revenue summarises non-departmental revenue that the Ministry administers on behalf of the Crown. Main Supp. Actual Actual Estimates Estimates 30 June 30 June 30 June 30 June ($000) ($000) ($000) ($000) Revenue Court Fines - 192, ,704 - Money Forfeited to the Crown Recovery of Non-judicial Salaries from Crown Entities Hotel Investment Account Interest Rental from Land Bank Properties 5,750 6,250 7,317 6,123 Waitomo Cave Loan Interest Total Revenue and Receipts 6, , ,225 6,706 MINISTRY OF JUSTICE ANNUAL REPORT

66 PART 2 FINANCIAL SUMMARY Schedule of Expenses FOR THE YEAR ENDED 30 JUNE 2004 The schedule of expenses summarises non-departmental expenses that the Ministry administers on behalf of the Crown. Main Supp. Actual Actual Estimates Estimates 30 June 30 June 30 June 30 June Note ($000) ($000) ($000) ($000) Operating Expenses Personnel Judges Salaries and Allowances - 41,065 40,365 - Change in Fines Debt Provisions - 21,948 (38,255) - Fines Debt Write-offs - 29,278 23,318 - Treaty Debts Write-offs Depreciation Treaty Property Portfolio A , Other Expenses Incurred by the Crown (details on page 52) 36,214 46,360 43,902 - Non-departmental Output Classes (details on page 51) 149, , , ,932 Compensation for Wrongly Convicted Individuals Cash and Property Settlements (Treaty Settlements) 94,121 31,508 30,307 53,359 Ancillary Claims Trust Interest on Treaty Settlements - 4,225 4,111 4,022 Loss/(gain) on Sales from Treaty Property Portfolio - - (2,679) 3,886 Total Operating Expenses 244, , , , MINISTRY OF JUSTICE ANNUAL REPORT

67 Schedule of Assets FOR THE YEAR ENDED 30 JUNE 2004 The schedule of assets summarises non-departmental assets that the Ministry administers on behalf of the Crown. Assets Main Supp. Actual Actual Estimates Estimates as at as at 30 June 30 June 30 June 30 June Note ($000) ($000) ($000) ($000) Current Assets Cash 19,343 21,078 34,497 15,718 Accounts Receivable (Treaty) 6,124 6,124 6,235 4,968 Fines Collectible - 457, ,607 - Less Provision for Doubtful Debts Fines - (165,171) (102,972) - Other Accounts Receivable 3,271 14,939 32,714 3,149 Total Current Assets 28, , ,081 23,835 Non-current Assets Fixed Assets Land, Improvements B 139, , , ,235 Waitomo Cave Loan 1,239 1, Hotel Investment Account Advances 1,330 1,330 1,212 1,330 Total Non-current Assets 141, , , ,743 Total Non-departmental Assets 170, , , ,578 Schedule of Liabilities FOR THE YEAR ENDED 30 JUNE 2004 The schedule of liabilities summarises non-departmental liabilities that the Ministry administers on behalf of the Crown. Current Liabilities Main Supp. Actual Actual Estimates Estimates as at as at 30 June 30 June 30 June 30 June ($000) ($000) ($000) ($000) Funding Accruals Sundry Creditors - 23,005 28,716 - Treaty Negotiations Creditors Property Settlements, Interest Accruals, etc 77,988 70,432 85,345 68,014 Total Current Liabilities 77,988 93, ,061 68,175 MINISTRY OF JUSTICE ANNUAL REPORT

68 PART 2 FINANCIAL SUMMARY Schedule of Contingent Liabilities FOR THE YEAR ENDED 30 JUNE 2004 Actual Actual as at as at 30 June 30 June ($000) ($000) Contingent Liabilities Quantifiable GST and Income Tax Indemnities from Treaty Settlements 92,351 31,666 Other Quantifiable Contingent Liabilities 1,156 - Total Contingent Liabilities Quantifiable 93,507 31,666 Contingent Liabilities Non-quantifiable Indemnity to the Tainui Mäori Trust Board Against the Costs of Remedying Possible Contaminated Sites on Certain Land Transferred to Them - - Indemnity to Waikato Tainui and Ngäi Tahu that Maintains the Relativity of Their Settlement Redress Against the Total Redress for all Claims - - Total Contingent Liabilities Non-quantifiable - - Total Contingent Liabilities 93,507 31,666 Schedule of Commitments FOR THE YEAR ENDED 30 JUNE 2004 These operating commitments relate to professional fees for relationship services through all District Courts of $5.082 million and payments for crime prevention and community safety services under contracts arranged through the Crime Prevention Unit of $1.073m (2002/03: $4.076 million - former Ministry of Justice). Actual Actual as at as at 30 June 30 June ($000) ($000) Operating Commitments Less than One Year 5,888 5,169 One to Two Years Two to Five Years - - More than Five Years - - Total Operating Commitments 6,155 5,169 Total Commitments 6,155 5, MINISTRY OF JUSTICE ANNUAL REPORT

69 Notes to the Non-departmental Schedules Note A: Depreciation Treaty Property Portfolio Actual Actual 30 June 30 June ($000) ($000) Improvements 1, Total Depreciation 1, Note B: Property, Plant and Equipment Cost or Accum. Carrying Cost or Accum. Carrying Valuation Dep n Amount Valuation Dep n Amount 30 June 30 June 30 June 30 June 30 June 30 June ($000) ($000) ($000) ($000) ($000) ($000) Land (at valuation) 113, ,178 86,047-86,047 Improvements (at valuation) 45,918 (3,156) 42,762 49,446 (4,258) 45,188 Total 159,096 (3,156) 155, ,493 (4,258) 131,235 MINISTRY OF JUSTICE ANNUAL REPORT

70 PART 2 SERVICE PERFORMANCE Statement of Service Performance An explanation has been provided for all variances + or - 10 percent from the mid-point of a range or target. Actuals that fall within the target range are deemed to be achieved. Vote Justice OUTPUT CLASS 1 Ministerial servicing and management of non-departmental output classes This includes services provided to the Minister of Justice relating to: preparing draft responses to Ministerial correspondence and Parliamentary questions on issues relating to or impacting on the justice portfolio providing advice and documentation to Ministers about Ministerial appointments providing advice on purchasing services supplied by Crown entities and other bodies funded through Vote Justice providing advice on the Crown s ownership interest in those Crown entities. 1.1 Ministerial correspondence and Parliamentary questions Outputs and Key Performance Indicators Target Actual Variance Number of draft replies to Ministerial correspondence. 2,400-2,800 1, % Number of draft responses to Parliamentary questions % Number of Official Information Act (OIA) requests % The Minister will approve substantive policy content of 95 percent of the first draft replies to Ministerial correspondence and Parliamentary questions presented. Achieved Achieved Replies to Ministerial correspondence and Parliamentary questions will meet the Ministry s quality criteria: accurate information logical structure style appropriate to purpose conclusions based on sound reasoning Replies to Ministerial correspondence are to be provided within the timeframes agreed with the Minister. Achieved Achieved - Achieved Not Achieved Refer to explanation of variance Responses to Parliamentary questions are to be provided by agreed deadlines. Achieved Achieved - Explanation of Variance Demand driven fewer Ministerials were received than anticipated Demand driven fewer Parliamentary questions were received than anticipated Demand driven fewer OIA requests were received than anticipated A total of 86 percent of Ministerial correspondence was completed within the agreed timeframes. 70 MINISTRY OF JUSTICE ANNUAL REPORT

71 VOTE JUSTICE 1.2 Advice to other agencies Outputs and Key Performance Indicators Target Actual Variance The Ministry provides advice during the year on Crown entities and other bodies funded through Vote Justice. It also provides advice on issues on an ongoing basis as requested by the Minister. Achieved Achieved Ministerial appointments Outputs and Key Performance Indicators Target Actual Variance Number of Ministerial appointments supported Advice and documentation provided to the satisfaction of the Minister and meeting the Ministry s quality criteria: Achieved Achieved - options are presented consultation occurs where appropriate resource implications are considered where appropriate Statutory and agreed deadlines will be met. Achieved Achieved Management of non-departmental output classes Outputs and Key Performance Indicators Target Actual Variance Advice and documentation are provided to the satisfaction of the Minister. Achieved Achieved Statutory and agreed deadlines will be met. Achieved Not Achieved Refer to explanation of variance Explanation of Variance Deadlines have been met in all but one instance. The Police Complaints Authority tabled its annual report one day after the due date. OUTPUT CLASS STATEMENT Ministerial servicing and management of non-departmental output classes For the year ended 30 June 2004 Actual $ 000 Main Estimates $ 000 Supp. Estimates $ /06/03 Actual $ 000 Revenue Crown 1,850 1,850 1,850 1,851 Departmental Other Total Revenue 1,850 1,850 1,850 1,851 Total Expenses 1,846 1,850 1,850 1,719 Net Surplus/(Deficit) MINISTRY OF JUSTICE ANNUAL REPORT

72 PART 2 SERVICE PERFORMANCE OUTPUT CLASS 2 Policy advice This includes providing policy, purchase and legal advice, and research and evaluation on: building safer communities with initiatives relating to youth justice, victims and family violence, organised crime, burglary, alternative responses to crime including restorative justice, and the prevention of crime and victimisation building a fairer, more credible and more effective justice system with initiatives relating to the criminal justice system, New Zealand and international criminal law, constitutional issues, the electoral system, access to justice, human rights, family law, and commercial and property law expenditure priorities for the justice sector and other sector-wide co-ordination developing and implementing an integrated Justice Sector Information Strategy. 2.1 Provision of policy advice Outputs and Key Performance Indicators Target Actual Variance Provide excellent analysis that: Achieved Achieved - includes a clear statement of purpose is accurate and uses sound information presents a clear and logical argument, with any assumptions made explicit and supported by facts draws on professional knowledge and appropriate methodologies examines comparative material presents options uses a clear conceptual and well-articulated framework considers resource, legal and human rights implications and implementation issues/practicability considers risks, costs and benefits considers evaluation considers issues for Mäori and Pacific peoples. Where relevant, is based on review and consultation with Mäori and Pacific peoples and other agencies Be well presented: present advice clearly and concisely, in plain and correct language appropriate for the audience and meet Cabinet Office requirements when applicable Satisfy the Minister: survey the Minister every six months on the level of satisfaction with advice the Ministry provides and receive informal feedback at regular meetings with the Minister. Achieved Achieved - Achieved Achieved Advice will be provided within agreed timeframes. Achieved Achieved - 72 MINISTRY OF JUSTICE ANNUAL REPORT

73 VOTE JUSTICE OUTPUT CLASS STATEMENT Policy advice For the year ended 30 June 2004 Actual $ 000 Main Estimates $ 000 Supp. Estimates $ /06/03 Actual $ 000 Revenue Crown 13,206 13,206 13,206 12,208 Departmental Other Total Revenue 13,244 13,206 13,206 12,208 Total Expenses 12,876 13,321 13,070 12,016 Net Surplus/(Deficit) MINISTRY OF JUSTICE ANNUAL REPORT

74 PART 2 SERVICE PERFORMANCE OUTPUT CLASS 3 Management of the Parliamentary electoral system This includes the services relating to preparations for the next general election, any by-elections, election of list members, or referenda. It contributes directly to improving public confidence in the administration of the Parliamentary electoral process. 3.1 Policy advice Outputs and Key Performance Indicators Target Actual Variance Policy advice on electoral matters provided to the Minister s satisfaction. Achieved Achieved Policy advice on electoral matters provided to the Minister will meet the Ministry s quality criteria as outlined in Vote Justice, Output Class 2: Policy advice. Achieved Achieved Conducting the general election Outputs and Key Performance Indicators Target Actual Variance New three-year business plan to 2005 agreed by 31 August Achieved Achieved Voter technology internal study completed by 31 August Achieved Achieved Strategy to reduce institutional barriers to participation in place by 31 December Electoral processes and voter technology pilot identified by 31 December Achieved Achieved - Achieved Not Achieved Refer to explanation of variance Electoral processes and technology reviewed and frozen by 31 December Achieved On-track Refer to explanation of variance Explanation of Variance Internal study completed in August Due to technology risks this project was extended to the 2008 election. A policy paper on voter technology is currently being prepared Substantial progress has been made towards the freeze date with the release of Edition 3 of the Operations Manual. OUTPUT CLASS STATEMENT Management of the Parliamentary electoral system For the year ended 30 June 2004 Actual $ 000 Main Estimates $ 000 Supp. Estimates $ /06/03 Actual $ 000 Revenue Crown 2,318 4,018 2,718 17,900 Departmental Other Total Revenue 2,318 4,018 2,718 17,900 Total Expenses 2,747 4,018 2,854 17,506 Net Surplus/(Deficit) MINISTRY OF JUSTICE ANNUAL REPORT

75 VOTE JUSTICE OUTPUT CLASS 4 Services to support crime prevention and community safety This includes providing advice to government and communities on the Crime Reduction Strategy; and managing partnerships between government, local authorities and communities to develop crime prevention and community safety programmes in order to build safer communities. 4.1 Crime prevention and community safety Outputs and Key Performance Indicators Target Actual Variance Provide contract renewal services and advice, monitoring and support for: Achieved Achieved - 64 Safer Community Councils (SCC), including: four iwi-sponsored SCCs three Pacific Islands SCCs two joint-sponsored territorial local authority and iwi-sponsored SCCs 55 territorial local authority-sponsored SCCs 32 crime prevention programmes 14 Youth at Risk contracts jointly administered with Police in five sites in New Zealand Te Ärai Taihara o Counties Manukau Crime Reduction Strategy Contracts meet Ministry and Treasury guidelines for contracting non-government organisations Advice, monitoring and support provided to the Safer Community Council network is timely, relevant, logical and coherent. Achieved Achieved - Achieved Achieved Advice and support services are prepared within agreed timeframes. Achieved Achieved - Comment A Pacific Crime Prevention strategy to replace the Pacific Safer Community Council arrangements was approved by the Minister in May 2004 and implemented immediately. OUTPUT CLASS STATEMENT Services to support crime prevention and community safety For the year ended 30 June 2004 Actual $ 000 Main Estimates $ 000 Supp. Estimates $ /06/03 Actual $ 000 Revenue Crown 1,484 1,384 1,484 1,484 Departmental Other Total Revenue 1,484 1,384 1,484 1,484 Total Expenses 1,348 1,384 1,484 1,478 Net Surplus/(Deficit) MINISTRY OF JUSTICE ANNUAL REPORT

76 PART 2 SERVICE PERFORMANCE Vote Treaty Negotiations OUTPUT CLASS 1 Policy advice Treaty negotiations This includes services provided to the Minister in Charge of Treaty of Waitangi Negotiations: Ministerial services including replies to Ministerial correspondence, Official Information Act requests and Parliamentary questions on issues that impact on Treaty of Waitangi settlement negotiations advice on generic Treaty issues, including overall strategies for settling historical Treaty claims and developing generic approaches to policy issues that affect the settlement of more than one claim claim development and pre-negotiation, including advice and assistance to claimant groups to ensure that well-mandated groups are ready to enter negotiations; and advice to the Minister on specific historical Treaty claims up to and including advice on the terms of negotiation negotiating the settlement of historical Treaty claims from signed terms of negotiation to both parties ratifying the Deeds of Settlement including property valuation, disclosure, preparation and execution of legal documents; overseeing the preparation of settlement legislation and advising the select committee and Minister implementing Treaty settlements, including co-ordination and advice relating to the Crown complying with the terms and conditions of all unconditional Deeds of Settlement. 1.1 Ministerial correspondence, Parliamentary questions and Official Information Act requests Outputs and Key Performance Indicators Target Actual Variance Number of draft replies to Ministerial correspondence Number of draft responses to Parliamentary questions The quantity and nature of advice will be agreed with the Minister in Charge of Treaty of Waitangi Negotiations The Minister will approve substantive policy content of 95 percent of the first draft of Ministerial replies presented Ministerial Services timeframes will be agreed between the Minister and the Secretary for Justice for the financial year Quarterly and end-of-year reporting enables the Minister to assess actual timeliness against expectations. Achieved Achieved - Achieved Achieved - Achieved Not Achieved Refer to explanation of variance Achieved Achieved - Explanation of Variance It was agreed that 95 percent of Ministerials and Parliamentary Questions would be completed within 20 working days. Eighty-nine percent of Ministerials were completed within 20 days. Ninety-seven percent of Parliamentary questions were completed within 20 days. 76 MINISTRY OF JUSTICE ANNUAL REPORT

77 VOTE TREATY NEGOTIATIONS 1.2 Policy advice, claim development and pre-negotiation, and negotiation of Treaty settlements Outputs and Key Performance Indicators Target Actual Variance The quantity and nature of policy advice will be agreed with the Minister in Charge of Treaty of Waitangi Negotiations Claim development and pre-negotiation. The Office of Treaty Settlements will aim to ensure well-mandated groups are ready to enter negotiations by delivering at least four Deeds of Mandate recognised by the Crown and at least two signed Terms of Negotiation. Achieved Achieved - Achieved Achieved Negotiating Treaty Settlements. The Office of Treaty Settlements will aim to deliver: a at least three signed Agreements in Principle or Heads of Agreement Achieved Not Achieved Refer to explanation of variance b at least two initialled Deeds of Settlement Achieved Achieved - c at least two Settlement Bills ready for introduction Achieved Achieved Policy advice, claim development and pre-negotiations, and negotiating Treaty settlements. All advice and negotiations will meet internal quality criteria Policy advice, claim development and pre-negotiation, and negotiating Treaty settlements. Agreed deadlines will be met. Achieved Achieved - Achieved Achieved - Explanation of Variance a One Agreement in Principle, Te Arawa Lakes, was signed. And Te Aupouri substantially agreed. Comment During the 2003/04 financial year the following Deeds of Mandate were recognised: Hokotehi Mäori Trust for Moriori Te Rünanga o Ngäti Manawa Te Rünanga o Ngäti Whare Iwi Trust Port Nicholson Block Claims Team Ngäti Tüwharetoa Hapü a Iwi Claims Forum Ngä Kaihautü o Te Arawa Executive Council. During the 2003/04 financial year the following Terms of Negotiation were signed: Te Rünanga o Ngäti Whare Te Rünanga o Ngäti Manawa b One Deed of Settlement was initialled and signed with Nga Rauru. Another Deed of Settlement was finalised for initialling with Ngati Mutunga, pending local body consideration of a proposed property vesting c Ngati Awa and Tuwharetoa ki Kawarau Settlement Bills are ready for introduction. MINISTRY OF JUSTICE ANNUAL REPORT

78 PART 2 SERVICE PERFORMANCE 1.3 Implementing Treaty settlements Outputs and Key Performance Indicators Target Actual Variance All obligations in signed Deeds of Settlement will be met. Achieved Achieved Settlements meet the terms specified in the ratified Deed of Settlement, or variations to those terms as may be agreed by the parties to the deed All deadlines specified in the unconditional Deeds of Settlement (or varied with the agreement of the parties) will be met, or the Minister will be advised. Compliance with this is affected by the timely acquisition and transfer of settlement properties under Vote Treaty Negotiations, Output Class 3: Land portfolio management Significant difficulties of a discrete or specific nature are drawn to the attention of the Minister and/or the claimants, with options for resolution, within 20 working days of identification. Achieved Achieved - Achieved Achieved - Achieved Achieved - OUTPUT CLASS STATEMENT Policy advice Treaty Negotiations For the year ended 30 June 2004 Actual $ 000 Main Estimates $ 000 Supp. Estimates $ /06/03 Actual $ 000 Revenue Crown 6,925 7,225 6,928 6,429 Departmental Other Total Revenue 6,925 7,225 6,928 6,429 Total Expenses 6,905 7,225 6,928 6,399 Net Surplus/(Deficit) MINISTRY OF JUSTICE ANNUAL REPORT

79 VOTE TREATY NEGOTIATIONS OUTPUT CLASS 2 Representation Waitangi Tribunal This includes services to the Minister in Charge of Treaty of Waitangi Negotiations to ensure the Crown undertakes research into historic Treaty grievances and is represented at Waitangi Tribunal hearings with well-prepared documentation and evidence. 2.1 Representation - Waitangi Tribunal Outputs and Key Performance Indicators Target Actual Variance The Ministry, on behalf of the Crown, will research historic claims and represent the Crown at claims hearings based on priorities outlined in Waitangi Tribunal hearing schedules or urgent hearings as they arise The Crown Law Office will represent the Crown and take into account the Crown s Treaty settlement policies and objectives as indicated by the Office of Treaty Settlements. Achieved Achieved - Achieved Achieved Evidence prepared will address key issues at Waitangi Tribunal hearings. Achieved Achieved One hundred percent of research and evidence will meet internal Crown Law Office quality assurance measures One hundred percent of items will comply with Office of Treaty Settlements quality assessment criteria. Achieved Achieved - Achieved Achieved Evidence will be prepared to meet the Tribunal s schedule. Achieved Not Achieved Refer to explanation of variance Explanation of Variance On occasions the Tribunal s schedule has been adjusted. This arose for a variety of reasons, ranging from the late filing of claimant evidence, to Crown research proving more complex than anticipated and taking longer to complete than initially predicted. None of these issues has been of significance or prejudiced the Tribunal s overall hearing programme. OUTPUT CLASS STATEMENT Representation Waitangi Tribunal For the year ended 30 June 2004 Actual $ 000 Main Estimates $ 000 Supp. Estimates $ /06/03 Actual $ 000 Revenue Crown 2,471 2,471 2,471 2,346 Departmental Other Total Revenue 2,471 2,471 2,471 2,346 Total Expenses 2,275 2,471 2,471 2,344 Net Surplus/(Deficit) MINISTRY OF JUSTICE ANNUAL REPORT

80 PART 2 SERVICE PERFORMANCE OUTPUT CLASS 3 Property portfolio management This includes: advising the Minister on Mäori interests in property, subject to the Protection Mechanism acquiring property for regional landbanks, the Crown Settlement Portfolio or claim-specific landbanks and subsequent transfer to a relevant claimant group as part of a Treaty settlement or disposal on the open market managing property that has been acquired for potential use in Treaty settlements, including managing tenancies, collecting revenue, paying expenses, maintaining properties to agreed standards and complying with the legal requirements as landowner. 3.1 Landbanking Outputs and Key Performance Indicators Target Actual Variance Number of properties acquired for landbanking % Average number of landbank properties managed % All properties not affected by cross claims will be sold within 12 months of settlement date. Achieved Achieved - Explanation of Variance The variance is a result of a lower number of surplus Crown properties, which meet the Protection Mechanism criteria, being available for acquisition. 3.2 Property acquisition Outputs and Key Performance Indicators Target Actual Variance Price agreed is based on criteria approved by Ministers and/or specified in a settlement agreement All Cabinet policies, legal and Deed of Settlement requirements are complied with. Achieved Achieved - Achieved Achieved Property management Outputs and Key Performance Indicators Target Actual Variance Property management and financial management records (and those of property management contractors) receive an unqualified independent audit opinion during the financial year. Achieved Achieved Refer to explanation of variance Explanation of Variance An unqualified independent audit for the 2002/03 financial year was completed in August The audit of the 2003/04 financial year is to be undertaken in the current financial year and will be reported in the Ministry s 2004/05 Annual Report. 3.4 Property transfer and disposal Outputs and Key Performance Indicators Target Actual Variance All Cabinet policies, legal and Deed of Settlement requirements are met. Achieved Achieved - 80 MINISTRY OF JUSTICE ANNUAL REPORT

81 VOTE TREATY NEGOTIATIONS OUTPUT CLASS STATEMENT Property portfolio management For the year ended 30 June 2004 Actual $ 000 Main Estimates $ 000 Supp. Estimates $ /06/03 Actual $ 000 Revenue Crown 4,686 4,386 4,686 4,386 Departmental Other Total Revenue 4,686 4,386 4,686 4,386 Total Expenses 4,620 4,386 4,686 4,381 Net Surplus/(Deficit) MINISTRY OF JUSTICE ANNUAL REPORT

82 PART 2 SERVICE PERFORMANCE Vote Courts FOR THE PERIOD 1 OCTOBER JUNE 2004 The Department for Courts merged with the Ministry of Justice on 1 October As a result of the merger, the Department for Courts produced a closure report covering the period from 1 July 2003 to 30 September This annual report covers the period from 1 October 2003 to 30 June 2004, for Vote Courts. The Statement of Service Performance for Vote Courts is reporting actual performance for the period 1 October 2003 to 30 June 2004 and should be read in conjunction with the Department for Courts Closure Report, which reported achievements against Vote Courts output classes for the period 1 July 2003 to 30 September OUTPUT CLASS 1 Policy advice and ministerial servicing Output Class 1 covers the provision of advice on the operation of administrative and judicial services delivered through the court system and on the collection or enforcement of monetary penalties and civil debt. It also covers the provision of Ministerial services including draft replies to Ministerial correspondence and draft responses to Parliamentary questions. Priority policy projects are agreed with the Minister for Courts as part of the policy work programme. 1.1 Policy advice Outputs and Key Performance Indicators Annual Target 1/10/03 Target 1/10/03 Actual 1/10/03 Variance The Minister rates progress on the agreed policy work programme as satisfactory or better The Minister rates the quality of policy advice on the policy work programme as satisfactory or better Respond to all requests for contributions to policy work by the date agreed. (Specifically contribute to projects in 2003/04 as set out in the policy work programme.) Achieved Achieved Achieved - Achieved Achieved Achieved - Achieved Achieved Achieved - 82 MINISTRY OF JUSTICE ANNUAL REPORT

83 VOTE COURTS 1.2 Ministerial servicing Outputs and Key Performance Indicators Annual Target 1/10/03 Target 1/10/03 Actual 1/10/03 Variance Number of items of Ministerial correspondence actioned % Percentage of draft replies to Ministerial correspondence completed within 15 working days from receipt in the Ministry Percentage of draft replies to Ministerial correspondence completed within 20 working days from receipt in the Ministry % % 86% % % 97% -2% Number of draft responses to Parliamentary questions completed % Percentage of draft responses to Parliamentary questions provided within stipulated deadlines Percentage of draft replies to Ministerial correspondence and draft responses to Parliamentary questions that meet the Minister s quality expectations % % 99% % % 95% -4% Explanation of Variance Demand driven more items of Ministerial correspondence were actioned than anticipated Demand driven more responses to Parliamentary questions were requested from the Ministry. OUTPUT CLASS STATEMENT Policy advice and ministerial servicing For the nine months 1/10/03 - Actual $ 000 Main Estimates $ 000 Supp. Estimates $ /06/03 Actual $ 000 Revenue Crown 1, ,633 0 Departmental Other Total Revenue 1, ,638 0 Total Expenses 1, ,549 0 Net Surplus/(Deficit) MINISTRY OF JUSTICE ANNUAL REPORT

84 PART 2 SERVICE PERFORMANCE OUTPUT CLASS 2 Collection or enforcement of fines and civil debts Collection or enforcement of court-imposed monetary penalties and infringement fines covers court-imposed monetary penalties including fines, reparation, restitution, court costs and other orders. Enforcement procedures come into effect 29 days after the penalty is imposed. Infringement fines are imposed predominantly by the Police or local authorities. The Ministry becomes involved in collecting them after the imposing authority has been unsuccessful. Enforcement of civil court orders and collection of civil debts covers the provision of services on behalf of judgement creditors. Civil court orders include those made in the civil jurisdiction of the Supreme Court 1, Court of Appeal, High Court, District Court, Environment Court, Disputes Tribunal and Tenancy Tribunal. 2.1 Collection or enforcement of court-imposed monetary penalties and infringement fines Outputs and Key Performance Indicators Annual Target 1/10/03 Target 1/10/03 Actual 1/10/03 Variance Percentage of fines actioned % % 57% 26.7% Amount collected 3. $178-$193m $ $146.90m $144.2m Percentage of Court-imposed fines collected or placed under arrangement within 28 days Percentage of Court-imposed fines collected or placed under arrangement within 4 months Percentage of infringement fines collected or placed under arrangement within 28 days Percentage of infringement fines collected or placed under arrangement within four months Number of legal challenges resulting in costs being awarded against the Ministry % 60-65% 58% -7.2% 80-85% 80-85% 79.5% -3.6% 25-30% 25-30% 29.9% % 55-60% 66.7% 16% Explanation of Variance The Collections Unit placed additional resourcing into its contact centre and centralised processing unit after the output targets were set for 2003/04. The receipting target was altered to reflect this The additional resourcing that has been placed in the contact centre, referred to in 2.1.1, has resulted in higher receipts and fines under arrangement and these account for this positive variance. 2.2 Collection of civil court orders and collections of civil debt Outputs and Key Performance Indicators Annual Target 1/10/03 Target 1/10/03 Actual 1/10/03 Variance Number of applications for distress warrants, orders for examination and other civil enforcement applications actioned Percentage of applications for distress warrants, orders for examination and other civil enforcement applications actioned within 28 days of receipt by the court Number of legal challenges resulting in costs being awarded against the Ministry. 52,000-56,000 39,000-42,000 41, % 85-90% 89.1% Applies from 1 January Actioned is when a fine is either under arrangement, collected and disbursed, remitted, under appeal or review, or not yet due for enforcement. 3 In June 2003 the Minister for Courts and Minister of Finance agreed to a business case that saw additional resources placed into the Collections contact centre. As part of the business case the Fines collection target (2.1.2) was raised from a range of $163-$176 million as published in the 2003/04 Statement of Intent, to $178-$193 million as shown in the Annual Target in this report. 84 MINISTRY OF JUSTICE ANNUAL REPORT

85 VOTE COURTS OUTPUT CLASS STATEMENT Collection or enforcement of fines and civil debts For the nine months 1/10/03 - Actual $ 000 Main Estimates $ 000 Supp. Estimates $ /06/03 Actual $ 000 Revenue Crown 34, ,075 0 Departmental Other 0 0 1,662 0 Total Revenue 36, ,824 0 Total Expenses 39, ,690 0 Net Surplus/(Deficit) -2, ,866 0 MINISTRY OF JUSTICE ANNUAL REPORT

86 PART 2 SERVICE PERFORMANCE OUTPUT CLASS 3 Case management criminal jurisdiction Output Class 3 covers the provision of services to people and agencies engaged in criminal cases and to support the work of the Judiciary in determining and managing criminal cases. Cases are managed to proceed as quickly as practicable allowing for the circumstances of the case, the limitations of the wider caseload and the availability of judges. 3.0 Case management criminal Supreme Court Outputs and Key Performance Indicators Annual Target 1/10/03 Target 1/10/03 Actual 1/10/03 Variance Number of criminal appeals managed. N/A 4 N/A 5 N/A Number of criminal appeal court hearings supported. N/A N/A 0 - Explanation of Variance The Supreme Court was established on 1 January 2004 and the first criminal appeal application was filed on 19 April Case management criminal Court of Appeal Outputs and Key Performance Indicators Annual Target 1/10/03 Target 1/10/03 Actual 1/10/03 Variance Number of criminal appeals managed % Number of criminal appeal court hearings supported % Explanation of Variance The variance is the result of appeals in the fourth quarter being 52 higher than forecast with very high filings in April (54) and May (67). 4 Targets for Supreme Court key performance indicators have been set for the 2004/05 financial year. 86 MINISTRY OF JUSTICE ANNUAL REPORT

87 VOTE COURTS 3.2 Case management criminal High Court Outputs and Key Performance Indicators Annual Target 1/10/03 Target 1/10/03 Actual 1/10/03 Variance Number of criminal appeals managed. 1, % Number of jury trial cases managed % Number of criminal appeal court sitting hours supported % Number of jury trial court sitting hours supported. 7,100 4,981 5, % Number of High Court criminal cases stayed for undue delay in terms of s25(b) of the Bill of Rights Act 1990 for reasons wholly or partly the responsibility of the Ministry Percentage of High Court Judges surveyed regarding criminal appeals and jury trial cases that rated case management/file preparation and presentation provided as meets expectations or better Percentage of High Court Judges surveyed regarding criminal appeals and jury trial cases that rated courtroom support provided as meets expectations or better % 70% 93% 32.9% 70% 70% 91% 30% Explanation of Variance The increase in the number of jury trial cases managed occured following the reclassification of methamphetamines as a Class A drug requiring such cases to be heard by the High Court Initial targets were required to be set before the results of the first survey were known. The target levels have been reset for 2004/ Initial targets were required to be set before the results of the first survey were known. The target levels have been reset for 2004/ Case management criminal District Court jury trials Outputs and Key Performance Indicators Annual Target 1/10/03 Target 1/10/03 Actual 1/10/03 Variance Number of jury trial cases managed. 4,100 2,093 2, % Number of jury trial court sitting hours supported. 18,000 12,896 12, % Number of District Court jury trial cases stayed for undue delay in terms of s25(b) of the Bill of Rights Act 1990 for reasons wholly or partly the responsibility of the Ministry Percentage of District Court Judges surveyed regarding jury trial cases that rated case management/file preparation and presentation provided as meets expectations or better Percentage of District Court Judges surveyed regarding jury trial cases that rated courtroom support provided as meets expectations or better % 70% 70% 64.6% -7.7% 70% 70% 77.9% 11.3% Explanation of Variance The stay relates to a case at Auckland District Court where the Registry contributed to the delay by not efficiently managing the engagement of interpreters Initial targets were required to be set before the results of the first survey were known. The target levels have been reset for 2004/05. 5 All stays of court proceedings are categorised by the presiding judge as either the result of Prosecutorial or Systematic causes. Prosecutorial stays are completely beyond the Ministry s control. Systematic stays occur for a variety of infrastructural and resource-related reasons only some of which are within the Ministry s control. This measure reports on those cases that were stayed for reasons that were within the Ministry s control. 6 The survey of judges takes place twice a year, in the second and fourth quarters. MINISTRY OF JUSTICE ANNUAL REPORT

88 PART 2 SERVICE PERFORMANCE 3.4 Case management criminal District and Youth Court summary jurisdiction Outputs and Key Performance Indicators Annual Target 1/10/03 Target 1/10/03 Actual 1/10/03 Variance Number of criminal summary cases managed. 195, , , % Number of Youth Court cases managed. 8,100 4,982 5, % Number of criminal summary court sitting hours supported. 46,500 34,023 36, % Number of deposition court sitting hours supported. 5,700 4,098 4, % Number of Youth Court sitting hours supported. 2,750 2,019 2, % Number of criminal summary cases stayed for undue delay in terms of s25(b) of the Bill of Rights Act 1990 for reasons wholly or partly the responsibility of the Ministry Number of Youth Court cases stayed for undue delay in terms of s25(b) of the Bill of Rights Act 1990 for reasons wholly or partly the responsibility of the Ministry Percentage of District Court Judges surveyed regarding criminal summary and Youth Court cases that rated case management/file preparation and presentation provided as meets expectations or better Percentage of District Court Judges surveyed regarding criminal summary and Youth Court cases that rated courtroom support provided as meets expectations or better % 70% 60.9% -13% 70% 70% 79.2% 13.1% Explanation of Variance The District Court responds readily to pressures on the Youth Court as caseloads change. The variance is high in proportionate terms but it is against a relatively small share of judge time. In absolute terms the variance is less than one full-time judge The stay relates to a case at the Whangarei District Court that was adjourned part-heard with a 21-week gap before the hearing was to recommence The variance arises due to low levels of satisfaction with all three components surveyed, with respect to criminal summary case management/file preparation and presentation in two judicial regions (Northern and Wellington). Issues raised in surveys are discussed between Regional Managers and the Executive Judges and action agreed to address judicial concerns Initial targets were required to be set before the results of the first survey were known. The target levels have been reset for 2004/05. OUTPUT CLASS STATEMENT Case management criminal jurisdiction For the nine months 1/10/03 - Actual $ 000 Main Estimates $ 000 Supp. Estimates $ /06/03 Actual $ 000 Revenue Crown 60, ,974 0 Departmental Other 6, ,771 0 Total Revenue 67, ,845 0 Total Expenses 69, ,632 0 Net Surplus/(Deficit) -1, , All stays of court proceedings are categorised by the presiding judge as either the result of Prosecutorial or Systematic causes. Prosecutorial stays are completely beyond the Ministry s control. Systematic stays occur for a variety of infrastructural and resource-related reasons only some of which are within the Ministry s control. This measure reports on those cases that were stayed for reasons that were within the Ministry s control. 8 The survey of judges takes place twice a year, in the second and fourth quarters. 88 MINISTRY OF JUSTICE ANNUAL REPORT

89 VOTE COURTS OUTPUT CLASS 4 Case management civil jurisdiction Output Class 4 covers the provision of services to people and agencies engaged in civil cases and to support the work of the Judiciary in determining and managing civil and family cases. Cases are managed to proceed as quickly as practicable allowing for the circumstances of the case, the limitations of the wider caseload and the availability of judges. 4.0 Case management civil Supreme Court Outputs and Key Performance Indicators Annual Target 1/10/03 Target 1/10/03 Actual 1/10/03 Variance Number of civil appeals managed. N/A 9 N/A 5 N/A Number of civil appeal court hearings supported. N/A N/A 0 - Explanation of Variance The Supreme Court was established on 1 January 2004 and the first civil appeal application was filed on 19 March Case management civil Court of Appeal Outputs and Key Performance Indicators Annual Target 1/10/03 Target 1/10/03 Actual 1/10/03 Variance Number of civil appeals managed % Number of civil appeal court hearings supported % 4.2 Case management civil High Court Outputs and Key Performance Indicators Annual Target 1/10/03 Target 1/10/03 Actual 1/10/03 Variance Number of civil and family appeals managed % Number of civil cases managed. 1,950 1,046 1, % Number of civil and family appeal court sitting hours supported % Number of civil case court sitting hours supported. 9,100 6,596 6, % Percentage of High Court Judges surveyed regarding civil appeals/cases that rated case management/file preparation and presentation provided as meets expectations or better Percentage of High Court Judges surveyed regarding civil appeals/cases that rated courtroom support provided as meets expectations or better % 70% 80% 14.3% 70% 70% 94% 34.3% Explanation of Variance The number of new appeals lodged was lower than forecast There has been little change in the amount of filing fees collected, however, with the introduction of the Case Management System (CMS) more comprehensive capture of information is now possible Initial targets were required to be set before the results of the first survey were known. The target levels have been reset for 2004/ Initial targets were required to be set before the results of the first survey were known. The target levels have been reset for 2004/05. 9 Targets for Supreme Court key performance indicators have been set for the 2004/05 financial year. 10 The survey of judges takes place twice a year, in the second and fourth quarters. MINISTRY OF JUSTICE ANNUAL REPORT

90 PART 2 SERVICE PERFORMANCE 4.3 Case management civil District Court Outputs and Key Performance Indicators Annual Target 1/10/03 Target 1/10/03 Actual 1/10/03 Variance Number of civil cases managed. 30,500 18,763 21, % Number of civil court sitting hours supported. 5,000 3,589 3, % Percentage of District Court Judges surveyed regarding civil cases that rated case management/file preparation and presentation provided as meets expectations or better Percentage of District Court Judges surveyed regarding civil cases that rated courtroom support provided as meets expectations or better % 70% 88.8% 26.9% 70% 70% 86.3% 23.3% Explanation of Variance There has been little change in the amount of filing fees collected, however, with the introduction of the CMS more comprehensive capture of information is now possible Initial targets were required to be set before the results of the first survey were known. The target levels have been reset for 2004/ Initial targets were required to be set before the results of the first survey were known. The target levels have been reset for 2004/ Case management civil Family Court Outputs and Key Performance Indicators Annual Target 1/10/03 Target 1/10/03 Actual 1/10/03 Variance Number of Family Court applications managed. 127,000 62,545 62, % Number of Family Court sitting hours supported. 21,000 15,283 15, % Percentage of Family Court Judges surveyed that rated case management/file preparation and presentation provided as meets expectations or better Percentage of Family Court Judges surveyed that rated courtroom support provided as meets expectations or better % 70% 80% 14.3% 70% 70% 83% 18.6% Explanation of Variance Initial targets were required to be set before the results of the first survey were known. The target levels have been reset for 2004/ Initial targets were required to be set before the results of the first survey were known. The target levels have been reset for 2004/ Case management civil Disputes Tribunal Outputs and Key Performance Indicators Annual Target 1/10/03 Target 1/10/03 Actual 1/10/03 Variance Number of claims disposed of. 23,000-24,000 17,250-18,000 16, % Number of sitting days supported. 6,000-6,400 4,500-4,800 4, % Percentage of claims disposed of within 90 days of date of filing. 80% 80% 80% - 11 The survey of judges takes place twice a year, in the second and fourth quarters. 90 MINISTRY OF JUSTICE ANNUAL REPORT

91 VOTE COURTS OUTPUT CLASS STATEMENT Case management civil jurisdiction For the nine months 1/10/03 - Actual $ 000 Main Estimates $ 000 Supp. Estimates $ /06/03 Actual $ 000 Revenue Crown 32, ,174 0 Departmental Other 11, ,217 0 Total Revenue 44, ,042 0 Total Expenses 47, ,035 0 Net Surplus/(Deficit) -2, ,993 0 MINISTRY OF JUSTICE ANNUAL REPORT

92 PART 2 SERVICE PERFORMANCE OUTPUT CLASS 5 Environment Court, tribunals and other authorities Output Class 5 covers the provision of services to people and agencies engaged in cases and to support the work of the Judiciary (including Judicial Officers), and other statutory officers in determining and managing cases through the Environment Court and individual tribunals, authorities, boards, and committees administered by the Ministry of Justice. This output class also includes providing administrative support for Coroners and contracting mortuary services. 5.1 Case management Environmental Court Outputs and Key Performance Indicators Annual Target 1/10/03 Target 1/10/03 Actual 1/10/03 Variance Number of applications disposed of. 1,750-1,850 1,313-1, % Number of sitting days supported % Percentage of applications disposed of within the required timeframe guidelines. 75% 75% 66% -12% Percentage of sittings completed as per schedule. 80% 80% 67% -16.3% Explanation of Variance The Court is focusing on disposal of reference cases. These take more time to resolve than appeals and result in temporarily-decreased disposal numbers The overall result is being affected by the number of older reference cases being resolved. Appeals, which make up the majority of the work of the Court, are being disposed of within the timeframe guidelines A number of cases have settled after being scheduled for hearing. In these circumstances the sitting is not completed despite the fact that the case is resolved. 5.2 Coroners support and administration Outputs and Key Performance Indicators Annual Target 1/10/03 Target 1/10/03 Actual 1/10/03 Variance Number of written requests for information actioned % Percentage of written requests for information actioned within 20 working days. 85% 85% 100% 17.6% Number of Coronial findings registered. 4,000-4,500 3,000-3,250 2, % Percentage of Coroner s recommendations actioned within 10 working days of receipt Number of contracts for coronial post-mortem facility services negotiated, concluded and managed Percentage of pathologists fees and expenses paid at rates prescribed in the Coroners (Fees) Regulations % 100% 99% -1.0% % 100% 100% 100% - Explanation of Variance Demand driven requests are received from a number of public bodies and other organisations utilising the information for reporting purposes Despite the number of requests received the Ministry continues to be successful in actioning requests within the prescribed timeframe Demand driven all findings received have been registered National coverage is now being achieved with fewer contracts. 12 Given the overall size of the annual targets for these indicators the full-year result has been reported. Achievement against this target for the period 1 July September 2003 is reported in the Department for Courts Closure Report. 92 MINISTRY OF JUSTICE ANNUAL REPORT

93 VOTE COURTS 5.3 Tenancy Tribunal support and administration Outputs and Key Performance Indicators Annual Target 1/10/03 Target 1/10/03 Actual 1/10/03 Variance Number of claims disposed of. 20,000-23,000 15,000-17,250 13, % Number of sitting days supported. 2,700-2,850 2,025-2,137 2, % Percentage of sittings completed as per schedule. 80% 80% 80% - Explanation of Variance Fewer cases progressed to a Tenancy Tribunal Hearing, however, those that did were complex and took longer to resolve. 5.4 Case management liquor licensing Outputs and Key Performance Indicators Annual Target 1/10/03 Target 1/10/03 Actual 1/10/03 Variance Number of applications disposed of % Number of sitting days supported % Percentage of applications disposed of within the required timeframe guidelines. 80% 80% 71% -11.3% Percentage of sittings completed as per schedule. 80% 80% 68% -15% Explanation of Variance Disposals are high as priority has been given to disposing of applications over six months old while continuing to deal with new applications Priority has been given to applications over six months old. As this statistic is counted at the time of disposal, resolution of older applications has had an adverse impact on this performance indicator. New applications are being dealt with within the required timeframe Late adjournments impact on the allocation of fixtures for other cases. 5.5 Case management and support - other tribunals and authorities 13 Outputs and Key Performance Indicators Annual Target 1/10/03 Target 1/10/03 Actual 1/10/03 Variance Number of applications disposed of. 1,500-1,650 1,125-1,238 1, % Number of sitting days supported % Percentage of applications disposed of within the required timeframe guidelines. 80% 80% 49% -38.8% Percentage of sittings completed as per schedule. 80% 80% 81% 1.3% Explanation of Variance A significant number of older cases are being determined. As the statistic is counted at the time of disposal, resolving older cases has had an adverse impact on this performance indicator. 13 Other Tribunals and Authorities (covered in output 5.5): Abortion Supervisory Committee; Accident Compensation Appeal Authority; Accident Compensation District Court Registry; Human Rights Review Tribunal; Copyright Tribunal; Criminal Justice Reimbursement Scheme; Customs Appeal Authority; Deportation Review Authority; Land Valuation Tribunal; Lay Members of the NZ Law Practitioners Disciplinary Tribunals; Lay Observers; District Law Societies; Motor Vehicle Disputes Tribunal; Pharmacy Authority; Social Security Appeal Authority; Student Allowance Appeal Authority; Taxation Review Authority; Trans-Tasman Occupations Tribunal. MINISTRY OF JUSTICE ANNUAL REPORT

94 PART 2 SERVICE PERFORMANCE OUTPUT CLASS STATEMENT Environmental Court, tribunals and other authorities For the nine months 1/10/03 - Actual $ 000 Main Estimates $ 000 Supp. Estimates $ /06/03 Actual $ 000 Revenue Crown 10, ,562 0 Departmental 1, ,459 0 Other 3, ,242 0 Total Revenue 15, ,442 0 Total Expenses 13, ,558 0 Net Surplus/(Deficit) 1, MINISTRY OF JUSTICE ANNUAL REPORT

95 VOTE COURTS OUTPUT CLASS 6 Mäori land information and case management Output Class 6 involves keeping Mäori land information, providing Mäori land information to owners, providing an advisory service for Mäori land owners, and providing services to support the work of the Judiciary of the Mäori Land Court (MLC) and the Mäori Appellate Court (MAC). 6.1 Provision of Mäori land information Outputs and Key Performance Indicators Annual Target 1/10/03 Target 1/10/03 Actual 1/10/03 Variance Number of searches for information from Mäori Land Information System (MLIS) National Index. 800, , , , , % Percentage of written enquiries replied to within 10 working days of receipt. 95% 95% 96% 1.1% Number of enquiries processed % Percentage of enquiries dealt with within two months of receipt. 90% 90% 0% -100% Percentage of enquiries responded to in accordance with quality standards. 95% 95% 98% 3.2% Explanation of Variance Use of the system by Mäori Land Court clients increased as they continued to become more familiar with MLIS There is no longer a material demand for this service The nature of the research required for the applications received meant that this target could not be achieved. 6.2 Provision of advisory services to Mäori land owners Outputs and Key Performance Indicators Annual Target 1/10/03 Target 1/10/03 Actual 1/10/03 Variance Number of meetings attended outside the MLC offices by the Advisory Service where advice is provided Percentage of clients who complete an evaluation form who rate the service as meeting or exceeding expectations Number of applications for succession and for establishment of management structures generated through the Advisory Service. 2,000-2,200 1,500-1,650 1, % 95% 95% 100% 5.3% % Explanation of Variance The higher than expected number of meetings is largely due to an increase in requests for advisory officers to attend hui at whänau hui, home and marae During the last quarter of the year resources have been shifted towards reducing the backlog in applications (see 6.3.4). As a consequence, the Advisory Service staffing resources were applied to concluding applications, which resulted in the generation of new applications being below target. 14 Given the overall size of the annual targets for these indicators the full-year result has been reported. Achievement against this target for the period 1 July September 2003 is reported in the Department for Courts Closure Report. 15 This indicator includes one-to-one meetings. The indicator excludes enquiries dealt with over the counter, by phone and One client per meeting is asked to complete an evaluation form. MINISTRY OF JUSTICE ANNUAL REPORT

96 PART 2 SERVICE PERFORMANCE 6.3 Case Management - Mäori Appellate Court and Mäori Land Court Outputs and Key Performance Indicators Annual Target 1/10/03 Target 1/10/03 Actual 1/10/03 Variance Number of appeals to the Mäori Appellate Court prepared for hearing % Number of reports under section 45 of Te Ture Whenua Mäori Act 1993 submitted to the Chief Judge % Number of applications received. 6,500-7,500 4,875-5,625 4, % Number of applications concluded. 5,500-6,000 4,125-4,500 5, % Percentage of applications processed to be ready for hearing within two months of receipt. 95% 95% 95% Percentage of applications processed in accordance with quality standards % 95% 98% 3.2% Explanation of Variance Demand driven output. It has only been necessary to prepare three appeals for hearing over the 2003/04 year Priority has been given to clearing backlogs from for other types of applications Demand driven output Priority has been given to clearing backlogs from previous years. OUTPUT CLASS STATEMENT Mäori land information and case management For the nine months 1/10/03 - Actual $ 000 Main Estimates $ 000 Supp. Estimates $ /06/03 Actual $ 000 Revenue Crown 8, ,617 0 Departmental Other Total Revenue 8, ,779 0 Total Expenses 8, ,769 0 Net Surplus/(Deficit) Given the overall size of the annual targets for these indicators the full-year result has been reported. Achievement against this target for the period 1 July September 2003 is reported in the Department for Courts Closure Report. 18 A random sample of up to 20 clients per month are selected and audited for compliance with quality standards. 96 MINISTRY OF JUSTICE ANNUAL REPORT

97 VOTE COURTS OUTPUT CLASS 7 Waitangi Tribunal Output Class 7 covers the provision of registration, researching, inquiring into and reporting on claims, and the provision of administrative services related to the management of claims through the Waitangi Tribunal. 7.1 Support to the Waitangi Tribunal Outputs and Key Performance Indicators Annual Target 1/10/03 Target 1/10/03 Actual 1/10/03 Variance Number of new claims registered % Percentage of new claims registered within three months of receipt. 90% 90% 76% -15.6% Percentage of Waitangi Tribunal research reports produced in accordance with the approved research programme Percentage of Waitangi Tribunal research commissions completed within the timeframes and standards set for them Number of casebooks advanced to the stage set out in the research programme Percentage of casebooks completed within the timeframes and standards set for them % 90% 100% 11.1% 90% 90% 90% % 90% 90% N/A N/A Number of Inquiries, involving multiple hearings, serviced and supported % Percentage of Inquiries and conferences serviced and supported, to the standards set for them. 90% 90% 90% Number of reports delivered to the timetables set for them Percentage of report writing and editorial assistance that complies with the timeframes and standards set for them. 90% 90% 82% -8.9% Explanation of Variance The backlog of new claims was cleared as planned and this contributed to the increase in numbers. In addition, the Foreshore and Seabed Urgent Inquiry generated some new claims due to the widespread interest in this issue The percentage is lower than planned due to the need to clear the backlog of claims, some of which had been waiting for more than three months Full year measure: 20 reports were produced in accordance with the programme, 16 were commissioned research and four were judicially directed casebook research reviews and statements of issues. All planned reports were delivered Full year measure: Four casebooks are in preparation in six districts: Whanganui (now due September 2004); Central North Island (CNI) Stage One (formerly Rotorua, Taupo and Kaingaroa, now due September 2004); National Park (due September 2004); East Coast (now due mid 2005) Full year measure: No casebooks were due for completion in the period. The deadlines for the Whanganui and CNI casebooks have been judicially reset to September Full year measure: Ten inquiries and two urgent inquiries supported were: Northern South Island, Flora and Fauna, Urewera, Wairarapa ki Tararua, Rotorua, Taupo, Kaingaroa, Whanganui, National Park, East Coast,(10); and Foreshore and Seabed, Te Arawa Mandate (2). 19 A casebook contains the majority of historical research reports and other evidential material needed to start a district inquiry. The initial casebook needs to cover the main historical claims issues and is completed prior to the start of an Inquiry or a new stage of an Inquiry. The completion of the casebook signals the start of the interlocutory conference stage of an Inquiry prior to the start of hearings. 20 Given the overall size of the annual targets for these indicators the full-year result has been reported. Achievement against this target for the period 1 July September 2003 is reported in the Department for Courts Closure Report. 21 Generally, Inquiries require multiple hearings (sittings) for a Tribunal panel. From time to time, claims granted urgency may be heard in a single hearing. Urgency matters can affect the overall timetable for hearings, and are allowed for in annual planning. MINISTRY OF JUSTICE ANNUAL REPORT

98 PART 2 SERVICE PERFORMANCE OUTPUT CLASS STATEMENT Waitangi Tribunal For the nine months 1/10/03 - Actual $ 000 Main Estimates $ 000 Supp. Estimates $ /06/03 Actual $ 000 Revenue Crown 5, ,204 0 Departmental Other Total Revenue 5, ,213 0 Total Expenses 5, ,213 0 Net Surplus/(Deficit) MINISTRY OF JUSTICE ANNUAL REPORT

99 Part 3 Supporting Information MINISTRY OF JUSTICE ANNUAL REPORT

100 100 MINISTRY OF JUSTICE ANNUAL REPORT

101 Part 3 Supporting Information Structure and Provision of Services Organisational Structure Organisational Leadership Locations for Provision of Services Courts, Committees, Tribunals and Other Authorities Administered Non-departmental Output Classes Court-related Statistics Higher Courts District Courts Special Jurisdictions Collections Acts Administered Major Reports and Publications Contacts for Further Information MINISTRY OF JUSTICE ANNUAL REPORT

102 PART 3 SUPPORTING INFORMATION Structure and Provision of Services The Ministry of Justice is a large government agency employing approximately 2,200 staff in over 100 locations across the country. Two-thirds of the staff are women, sixteen percent of staff identify as Mäori and seven percent are Pacific peoples. Organisational Structure The Ministry is responsible for three core functions: providing leadership to the justice sector, the provision of policy advice and the provision of services to run the court system. To deliver these functions, the Ministry is organised into three business groups. Each group is headed by a Deputy Secretary with General Managers responsible for specific activities within the groups. The Chief Electoral Office, managed by the Chief Electoral Officer, reports directly to the Secretary for Justice. Policy and Legal Group The Policy and Legal Group is responsible for the development of policy and legislation and the provision of legal advice and legal policy services to Ministers and Cabinet. It covers the areas of Criminal and Youth Justice Policy, the Crime Prevention Unit and ensuring compliance with international obligations. It also deals with issues related to Public Law and manages the Office of Treaty Settlements. Operations Group The Operations Group is responsible for the provision of services to facilitate the operation of the court system at both higher and district court levels. The Group also supports the operation of a range of other courts, tribunals and other authorities including the Environment Court, Mäori Land Court, Mäori Appellate Court, and the Waitangi Tribunal. The Group also has responsibility for the collection of court-ordered fines, infringements issued by local authorities and Crown agencies, and civil debt services. Chief Electoral Office The Chief Electoral Office conducts general elections, by-elections and referenda. Strategy and Corporate Group The Strategy and Corporate Group is responsible for a range of functions including the facilitation and development of the sector s strategic direction, the co-ordination of purchase advice and the provision of services across the sector. The Group is also responsible for providing services to the Ministry including human resources, information technology, legal services, property services, business assurance, communications, finance, planning and reporting, and facilities and office management. 102 MINISTRY OF JUSTICE ANNUAL REPORT

103 SENIOR MANAGEMENT STRUCTURE AND FUNCTIONS Policy and Legal Strategy and Corporate Operations Chief Legal Counsel Sector Strategy and Information Services Higher Courts Legal and legal policy advice to Ministers and Cabinet Sector Strategy and Planning Services to the Supreme Court, Court of Appeal and High Courts Purchase Advice Crown Entity Relationships Crime Prevention and Criminal Justice Information Services Criminal Justice Policy Justice Sector Information Strategy Crime Prevention Unit Mäori/Treaty Responsiveness International Communications Youth Justice Policy Public Law Constitutional and Medico-legal District Courts Services to the District Courts, including Youth and Family Courts Technology and Services Leadership and Development of Technology Provision of Technology Services Special Jurisdictions Family Law Finance and Support Services Services to the Environment Court, Mäori Human Rights Finance Land Court, Mäori Appellate Court, Waitangi Access to Justice Property Tribunal, Disputes Tribunals, Tenancy Tribunal, Court Security Coroners, Liquor Licensing Authority and a Office Solicitor number of other tribunals and authorities Commercial, Property and Regulatory Research and Evaluation Research and Evaluation Office of Treaty Settlements Business Assurance Planning and Reporting Ministerial Support Facilities and Office Management Policy and Negotiations Human Resources Representation Waitangi Tribunal Human Resources Payroll Property Portfolio Management Collections Collection of Court-ordered Fines Collection of Infringement Fines for Local Authorities and Crown Agencies Civil Debt Services Organisational Leadership The Ministry s Executive Team was established to guide and lead the new organisation. It comprises the Chief Executive/ Secretary for Justice and the Deputy Secretaries who lead the Ministry s three business groups. The Senior Management Team includes the General Managers who report to the Deputy Secretaries and who are responsible for the functions outlined above. Executive Team Pictured from left to right are: Sandi Beatie, Deputy Secretary Strategy and Corporate; Belinda Clark, Chief Executive; Andrew Bridgman, Deputy Secretary Policy and Legal; and Liz Sinclair, Deputy Secretary Operations. MINISTRY OF JUSTICE ANNUAL REPORT