Forecast Financial Statements. New Zealand Defence Force. EXTERNAL SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2013/14 B.5A Vol.

Transcription

1 Forecast Financial Statements New Zealand Defence Force EXTERNAL SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2013/14 B.5A Vol.4 185

2 Statement of Forecast Comprehensive Income for the year ending 30 June 2014 Note ed Income 1 Crown 4, 7 2,149,668 2,383,053 2,180,008 2,291,705 Department(s) 17,499 18,700 18,700 17,850 Other revenue 9,999 11,215 11,215 11,215 Gains 23,574 (250) 2,651 - Interest Total Income 2,200,784 2,412,728 2,212,584 2,320,780 Expenses Personnel 842, , , ,967 Operating 2, 3 541, , , ,521 Depreciation and amortisation 315, , , ,680 Capital charge 452, , , ,602 Finance costs Other 17,333-14,893 - Total Expenses 2,169,750 2,412,968 2,224,816 2,320,770 Net Surplus / (Deficit) 31,034 (240) (12,232) 10 Other comprehensive income (36,138) Total Comprehensive Income (5,104) (240) (12,232) EXTERNAL SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2013/14 B.5A Vol.4

3 Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2014 Note ed Balance at 1 July General funds 3,738,455 3,774,040 3,772,574 3,621,790 Revaluation reserve 1,917,399 1,919,951 1,893,006 1,923,918 Other reserves Taxpayers' Funds Opening Balance 5,655,854 5,693,991 5,665,580 5,545,708 Changes in Taxpayers' Funds Comprehensive income for the period (5,104) (240) (12,232) 10 Repayment of surplus (23,607) (10) (10) (10) Capital contribution 38,435 11,800 11,800 14,188 Capital withdrawal - - (119,430) - Other Total Changes in Taxpayers' Funds 9,726 11,550 (119,872) 14,188 Balance at 30 June General funds 3,772,574 3,785,590 3,621,790 3,635,978 Revaluation reserve 1,893,006 1,919,951 1,923,918 1,923,918 Other reserves Taxpayers' Funds Closing Balance 5,665,580 5,705,541 5,545,708 5,559,896 EXTERNAL SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2013/14 B.5A Vol.4 187

4 Forecast Statement of Financial Position as at 30 June 2014 Note ed Assets Current Assets Cash and cash equivalents 79,109 29,750 44,327 18,504 Debtors and other receivables 5 416, , , ,058 Prepayments 32,542 37,000 37,000 37,000 Inventories 6 87, ,772 85,953 85,981 Other current assets 1, Total Current Assets 616, , , ,543 Non-current Assets Property, plant and equipment 5,163,151 5,341,150 4,984,964 5,127,336 Intangible assets 8 5,341 8,000 22,081 31,380 Other non-current assets 6 206, , , ,438 Total Non-current Assets 5,374,951 5,567,868 5,227,411 5,379,154 Total Assets 5,991,530 5,982,621 5,826,113 5,824,697 Liabilities Current Liabilities Creditors and other payables 203, , , ,964 Repayment of surplus 23, Employee entitlements 40,804 38,767 52,387 52,387 Other current liabilities 6,363 1,591 8,621 3,038 Total Current Liabilities 273, , , ,399 Non-current Liabilities Provisions Employee entitlements 46,412 32,966 11,914 10,914 Other non-current liabilities 5,719 3,354 3,354 1,488 Total Non-current Liabilities 52,131 36,320 15,268 12,402 Total Liabilities 325, , , ,801 Taxpayers' Funds General funds 3,772,574 3,785,590 3,621,790 3,635,978 Revaluation reserve 1,893,006 1,919,951 1,923,918 1,923,918 Other reserves Total Taxpayers' Funds 5,665,580 5,705,541 5,545,708 5,559,896 Total Liabilities and Taxpayers' Funds 5,991,530 5,982,621 5,826,113 5,824, EXTERNAL SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2013/14 B.5A Vol.4

5 Statement of Forecast Cash Flows for the year ending 30 June 2014 Note ed Cash Flows from Operating Activities Receipts from: Crown 2,087,630 2,504,450 2,164,276 2,419,859 Department(s) 17,329 18,700 49,206 17,850 Other 9,550 11,215 13,214 10,421 Interest Payments to: Suppliers (566,925) (778,354) (651,510) (698,660) Employees (821,032) (813,000) (857,109) (794,513) Capital charge (452,975) (457,012) (453,757) (444,602) Goods and services tax (net) (4,348) (5,572) (8,562) 3,985 Other operating activities (538) - 5,938 - Net Cash from Operating Activities 9 268, , , ,350 Cash Flow from Investing Activities Receipts from: Sale of property, plant and equipment 14,683-17,629 - Sale of intangible assets Sale of other non-current assets 208, Purchase of: Property, plant and equipment (285,714) (471,776) (283,053) (540,834) Intangible assets (522) (8,658) (2,257) (13,517) Other non-current assets (217,847) Net Cash from Investing Activities (281,258) (480,434) (267,681) (554,351) Cash Flow from Financing Activities Capital contribution 38,435 11,800 11,800 14,188 Other financing cash inflows Repayment of surplus (28,190) (10) (23,607) (10) Capital withdrawal - - (17,000) - Other financing cash outflows Net Cash from Financing Activities 10,245 11,790 (28,807) 14,178 Net Increase / (Decrease) in Cash (2,278) 11,793 (34,782) (25,823) Cash at the beginning of the year 81,387 17,957 79,109 44,327 Cash at the end of the year 79,109 29,750 44,327 18,504 EXTERNAL SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2013/14 B.5A Vol.4 189

6 Statement of Significant Assumptions These statements have been compiled on the basis of government policies and the New Zealand Defence Force (NZDF) Output Plan agreements with the Minister for Defence at the time the statements were finalised. The 2012/13 budgeted figures are based on management's judgments, estimates and assumptions of the final 2012/13 outcome and are used as the opening position for 2013/14 forecasts. Key assumptions underlying this forecast are: There will be no significant change in government policies or the New Zealand Defence Force's Output Plan agreement with the Minister of Defence. Ministry of Defence payments reflect the forecast payments for acquisition projects which have been approved by Cabinet. Should additional projects be approved during the year, there may be payments for these projects during the year. There will be no major changes in exchange rates. The capital charge rate for the year ending 30 June 2013 is assumed to be 8.0% per annum. Statement of Entity-Specific Accounting Policies The New Zealand Defence Force has applied the accounting policies set out in Statement of Accounting Policies Standard included in this document, except as stated below. Reporting Entity These are the prospective financial statements of New Zealand Defence Force, prepared in accordance with section 38 of the Public Finance Act New Zealand Defence Force is a Government Department as defined by section 2 of the Public Finance Act For the purposes of financial reporting New Zealand Defence Force is a public benefit entity. In addition the financial statements include information on the activities that NZDF administers on behalf of Vote Veterans' Affairs Defence Force. In these financial statements the New Zealand Defence Force is also referred to as the NZDF, and Veterans' Affairs New Zealand is also referred to as VANZ. Authorisation Statement These forecast financial statements were authorised for issue by the Chief of Defence Force on 16 April The Chief of Defence Force as the Chief Executive of the New Zealand Defence Force is responsible for the forecast financial statements presented, including the appropriateness of the assumptions underlying the forecast financial statements and all other required disclosure. Specific Accounting Policies Property, Plant and Equipment Capitalisation thresholds applied are set out below: IT Equipment / Hardware $5,000. All other property, plant and equipment $5, EXTERNAL SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2013/14 B.5A Vol.4

7 Depreciation The estimated useful lives of property, plant and equipment are set out below. Buildings years. Leasehold improvements 2-20 years. IT Equipment / Hardware 2-5 years. Motor vehicles years. Furniture and office equipment 5-20 years. Specialist Military Equipment 5-55 years. Other Plant and Equipment 5-50 years. Revaluation Land, Buildings and Specialist Military Equipment asset classes are subject to revaluation every 5 years. Valuations use a market-based approach where possible. Where reliable market evidence is unavailable optimised depreciated replacement cost (ODRC) is used to calculate fair value. Intangible assets Capitalisation thresholds applied are: Purchased software $5,000. Internally developed software $5,000 The estimated useful lives of intangible assets are set out below: Purchased software 3-20 years. Internally developed software 3-20 years. Inventories Inventories are held for distribution or consumption in the provision of services and are comprised of munitions, technical spares and consumable items. Inventory intended to be kept for more than one year has been classified as non-current inventory. Inventories are recorded at weighted average cost and the cost of inventory reflects any obsolescence or other impairment. EXTERNAL SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2013/14 B.5A Vol.4 191

8 Cost Allocation The NZDF has determined the cost of outputs using a cost allocation system outlined below. Direct costs of a force element (for example, a squadron, a frigate, a battalion) are attributed directly to an appropriate output. Support unit costs are charged to outputs using drivers that reflect the use of that activity to produce outputs. Overhead costs are charged to outputs using the percentage of that outputs gross operating budget (exclusive of capital charge) to the total gross budget (exclusive of capital charge) for all outputs. The allocation rules are reviewed if there is significant organisational change to alter the continued appropriateness of the rules. 192 EXTERNAL SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2013/14 B.5A Vol.4

9 Notes to the Financial Statements Note 1 - Gains ed Realised foreign exchange gains 6, Unrealised foreign exchange gains 9, Disposal of Property, Plant and Equipment gains 7,073 (250) (250) - Total Gains 23,574 (250) 2,651 - Note 2 - Operating Expenses ed Materials 195, , , ,681 Repairs and Maintenance 69,481 85,397 74,217 84,335 Premises cost 73,605 90,379 92,341 81,661 Operating lease rentals 46,794 58,815 51,184 46,053 Domestic travel 13,410 13,749 15,996 14,494 Overseas travel 17,199 21,450 21,101 21,147 Consultants' fees 557 3, Audit Fees Other Audit Services Increase/(decrease) in provision for doubtful debts (113) Other operating expenses 124, , , ,699 Total Operating Expenses 541, , , ,521 Note 3 - Redistribution of Underspends The 2012/ /17 operating expenses include the impact of the $175 million Redistribution of Underspends transferred from 2012/13. This funding has been redistributed to future years to manage within baselines and reinvest in future savings opportunities. EXTERNAL SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2013/14 B.5A Vol.4 193

10 Note 4 - Reconciliation of Departmental Expenses and Appropriations ed Appropriations for Output expenses Total for Vote: Defence Force - Annual Expenses 2,177,505 2,404,239 2,240,819 2,292,543 Total for Vote: Veterans' Affairs - Defence Force 10,890 10,502 10,877 0 Total Appropriations for output expenses 2,188,395 2,414,741 2,251,696 2,292,543 Appropriations for other expenses Maintenance of Assets Awaiting Sale 2, Disposal of Decommissioned Assets Total Appropriations for other expenses 2, Adjustments Remeasurements 17,137-14,893 - In-Principle Expense Transfer 30,000 Appropriation amounts unused (33,559) - (40,000) - Veterans' Affairs Non-Departmental Expenses (2,223) (1,773) (1,773) (1,773) Other expense appropriation not treated as departmental expense Total departmental expenses [as per Statement of Comprehensive Income] (2,850) (250) (250) - 2,169,750 2,412,968 2,224,816 2,320,770 This note reconciles the expenses reported in the forecast Statement of Comprehensive Income with the corresponding departmental appropriations appearing in the Estimates of Appropriations. Note 5 - Debtors and Other Receivables ed Debtor Crown 395, , , ,019 Debtors and other receivables 20,839 9,534 19,245 21,039 Total debtors and other receivables 416, , , ,058 Note 6 - Inventory ed Inventory: Current 87, ,772 85,953 85,981 Inventory: Non - current 206, , , ,438 Total Inventory 293, , , , EXTERNAL SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2013/14 B.5A Vol.4

11 Note 7 - Property, Plant and Equipment Land Buildings Specialist Military Equipment Plant & Equipment Office & Computer Equipment Total Cost or Revaluation Balance as at 1 July 2013 Additions by purchase Balance at 30 June ,864 1,301,403 4,324, ,993 69,911 6,561,043-52, ,697 5,186 9, , ,864 1,353,798 4,798, ,179 79,467 7,101,877 Accumulated depreciation Balance as at 1 July 2013 Depreciation expense Balance at 30 June 2014 Net PPE at 30 June ,279 1,226, ,170 52,542 1,576,079-34, ,866 12,833 5, , ,371 1,571, ,003 58,213 1,974, ,864 1,196,427 3,226, ,176 21,254 5,127,336 Note 8 - Intangible Assets Acquired software Internally generated software Other Total Cost Balance as at 1 July , ,640 Additions by purchase 13, ,517 Additions internally developed Disposals Balance as at 30 June , ,157 Accumulated amortisation and impairment losses Balance as at 1 July , ,559 Amortisation expense 4, ,218 Disposals Impairment losses Balance as at 30 June , ,777 Carrying amount as at 30 June , ,380 EXTERNAL SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2013/14 B.5A Vol.4 195

12 Note 9 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities ed Net surplus / (deficit) 31,034 (240) (12,232) 10 Add / (less) non cash items Depreciation and amortisation expense 315, , , ,680 Increase / (decrease) in the provision for stock obsolescence 1, Increase / (decrease) in provision for doubtful debt (279) Increase / (decrease) in non-current employee entitlements 8,406 (2,000) (34,498) (1,000) Increase / (decrease) in non-current finance leases (818) (2,365) (1,866) Increase / (decrease) in non-current derivatives (1,456) 632 (1,309) Asset write offs Realised foreign exchange gain / (loss) (14,001) - (11,992) - Other non cash items - (250) (250) (250) Total non cash items 308, , , ,505 Add / (less) items classified as investing or financing activities (Gains) / losses on disposal of Property, Plant and Equipment Total items classified as investing or financing activities 9, , Add / (less) movements in working capital items (Increase) / decrease in debtors and receivables (113,516) 106,858 26, ,959 (Increase) / decrease in interest (Increase) / decrease in inventories (1,317) 8,600 (12,700) (100) (Increase) / decrease in prepayments (5,191) - (4,458) - Increase / (decrease) in creditors and other payables 37,859 (1,691) (30,520) (22,009) Increase / (decrease) in GST payables (4,393) (5,572) (8,562) 3,985 Increase / (decrease) in provisions 4, Increase / (decrease) in current employee entitlements 2,302 (870) 11,583 - Net movements in working capital (80,227) 107,325 (18,083) 115,835 Net cash from operating activities 268, , , , EXTERNAL SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2013/14 B.5A Vol.4