Departmental Forecast Report
for the year ending 30 June 2003
Part C - Additional information
Crown Forecast Financial Statements
The Ministry procures and refurbishes, on behalf of the Crown, items of equipment contributing to a capability of the New Zealand Defence Force. This activity is recorded in the following Crown Forecast Financial Statements.
Crown Statement of Forecast Financial Performance
For the year ending 30 June 2003
| 2001/02 Budgeted $000 |
2001/02 Estimated actual $000 |
2002/03 Budget $000 |
|
|---|---|---|---|
| Crown Revenue | |||
| Interest | 900 | 900 | 600 |
| Total Crown revenue | 900 | 900 | 600 |
| Crown Expenses | |||
| GST input tax expensed | 35,424 | 35,424 | 11,718 |
| Total Crown expenses | 35,424 | 35,424 | 11,718 |
| Net (Deficit) - Crown Operations | (34,524) | (34,524) | (11,118) |
Crown Statement of Estimated Financial Position
As at 30 June 2002 and Forecast Financial Position as at 30 June 2003
| Actual Financial Position as at 30 June 2001 $000 |
Estimated Financial Position as at 30 June 2002 $000 |
Forecast Financial Position as at 30 June 2003 $000 |
|
|---|---|---|---|
| Crown Funds | |||
| Opening balance at 1 July | 170,651 | 268,283 | 152,784 |
| Net (deficit) - Crown operations | (24,143) | (34,524) | (11,118) |
| Funds received from NZ Debt Management Office | 274,000 | 200,000 | 223,000 |
| Funds paid to NZ Debt Management Office | (152,225) | (280,975) | (198,585) |
| Total Crown Funds | 266,283 | 152,784 | 166,081 |
| Represented by: Current Assets |
|||
| Cash | 62,257 | 36,053 | 46,238 |
| Short-term deposits | 25,910 | 19,413 | 19,817 |
| Debtors and receivables | 271 | - | - |
| Work in progress | 209,614 | 106,904 | 109,612 |
| Total Current Assets | 298,052 | 162,370 | 175,667 |
| Total Assets | 298,052 | 162,370 | 175,667 |
| Current Liabilities | |||
| Creditors and payables | 29,769 | 9,586 | 9,586 |
| Total Current Liabilities | 29,769 | 9,586 | 9,586 |
| Net Assets - Crown | 268,283 | 152,784 | 166,081 |
Crown Statement of Cash Flows
For the year ending 30 June 2003
| 2001/02 Budgeted $000 |
2001/02 Estimated actual $000 |
2002/03 Budget $000 |
|
|---|---|---|---|
| Cash Flows from Operating Activities | |||
| Cash provided from: | |||
| Interest | 900 | 900 | 600 |
| Cash disbursed to: | |||
| GST input tax expensed | (35,424) | (35,424) | (11,718) |
| Net Cash Flows from Operating Activities | (34,524) | (34,524) | (11,118) |
| Cash Flows from Investing Activities | |||
| Cash provided from: | |||
| Military equipment sold at cost to New Zealand Defence Force | 280,075 | 280,075 | 197,985 |
| GST on sales | 35,009 | 35,009 | 24,748 |
| Cash disbursed for: | |||
| Purchase of military equipment | (197,277) | (197,277) | (200,693) |
| GST paid to IRD | (35,009) | (35,009) | (24,748) |
| Net Cash Flows from Investing Activities | 82,798 | 82,798 | (2,708) |
| Cash Flows from Financing Activities | |||
| Cash provided from: | |||
| New Zealand Debt Management Office for funding purchase or development of military equipment | 200,000 | 200,000 | 223,000 |
| Cash disbursed for: | |||
| Payments to New Zealand Debt Management Office | (280,971) | (280,975) | (198,585) |
| Net Cash Flows from Financing Activities | (80,971) | (80,975) | 24,415 |
| Net increase/(decrease) in cash held | (32,697) | (32,701) | 10,589 |
| Add opening cash and deposits | 88,167 | 88,167 | 55,466 |
| Closing Total Cash Balances at 30 June projected | 55,470 | 55,466 | 66,055 |
Crown Reconciliation of Net Cash Flows from Operating Activities to Net Surplus/(Deficit) in the Statement of Financial Performance
For the year ending 30 June 2003
| 2001/02 Budgeted $000 |
2001/02 Estimated actual $000 |
2002/03 Budget $000 |
|
|---|---|---|---|
| Net (Deficit) - Crown operations | (34,524) | (34,524) | (11,118) |
| Add/(deduct) non-cash working capital reductions/(increases) from Statement of Financial Position |
|||
| (Increase)/decrease in work in progress | 102,710 | 102,710 | (2,708) |
| (Increase)/decrease in debtors and receivables | 271 | 271 | - |
| Increase/(decrease) in creditors and payables | (20,183) | (20,183) | - |
| Other items | (82,798) | (82,798) | 2,708 |
| Net Cash Flows from Operating Activities | (34,524) | (34,524) | (11,118) |
Procurement Matters
Australia and New Zealand have a common defence industry base established by the ANZAC Ship Treaty. To ensure that defence industry policy is harmonised to the greatest extent possible and to maximise the potential for joint or collaborative procurement, the Deputy Secretary (Acquisition), New Zealand Ministry of Defence and the Chief of Defence Acquisition of the Australian Department of Defence will meet once each year. In addition, Ministry of Defence procurement staff will participate in the Australian Defence Procurement Conference and meet with their Australian counterparts.
Crown Appropriation
The 2002/2003 appropriation is for the following significant projects:
| $000 | |
|---|---|
| Continuation of ANZAC ship project | 16,012 |
| Maritime helicopters | 6,331 |
| Tactical Communications | 8,532 |
| Light armoured vehicles | 169,790 |
Bridge Simulator |
28 |
GST on defence equipment |
11,718 |
| Total | 212,411 |
Quality Management
The Ministry will maintain ISO 9001 certification.
The accompanying accounting policies form part of these financial statements.
