Annual Report 2015 - 2016 · Annual Report 2015 - 2016 7 people to grow in their roles and to deliver consistent and timely services to members of Parliament. Maintaining the fabric

Working to our strengths

Annual Report2015 - 2016

Parliamentary Service

A.13

Presented to the House of Representatives pursuant to

section 44(1) of the Public Finance Act 1989

ISSN 2324-2868 (Print)

ISSN 2324-2876 (Online)

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Annual Report

2015 - 2016

Co

nte

nts 05 Foreword: Speaker of the House of Representatives

06 Better service starts with greater understanding

09 About us

13 Our achievements this year

15 Highlights from the year

23 Measuring our performance

37 Our Year of the People

44 Statement of responsibility

46 Independent Auditor’s report

49 Financial Information for the year ended 30 June 2016

116 Roadmap to Vision 2020

Annual Report

2015 - 20164

Annual Report

2015 - 20165

Foreword:Speaker of the

House of RepresentativesThe Parliamentary Service (the Service) supports the institution of Parliament by

providing administrative and support services to the House of Representatives and its

members of Parliament.

Every day, working

alongside other

agencies on the

parliamentary

precinct, the

Service helps guide,

protect, inform

and support the

country’s members

of Parliament.

Through the work

of all involved, this

country’s political system is able to work as

it should—robustly, fairly, effectively and

responsively.

The Service has had another very productive

year, continuing to grow and develop its

capabilities as it works towards its vision

of being recognised for excellence and

innovation.

Listening closely to the needs of members

of Parliament has led to important changes

in the service delivery model (ongoing into

2016/17).

People have been another key focus. I

have seen a significant transformation

in the way that the Service supports

and develops its workforce to deliver

consistent, efficient and timely services.

Their ambitious journey is vitally important

to ensure members of Parliament have the

support and services they need to carry

out their duties as effectively as possible

as elected representatives in our system of

representative democracy.

During 2015/16, the Service continued to

embed an integrated parliamentary sector

approach with the Office of the Clerk of

the House of Representatives (Office of the

Clerk). This work supports the achievement

of common outcomes for Parliament.

I continue to appreciate the support that the

Service has provided my office over the last

year.

The Rt Hon David Carter, MP

Speaker of the House of Representatives

30 September 2016

Annual Report

2015 - 20166

Better service starts with

greater understandingI am delighted to present the 2015/16 annual report of the Parliamentary Service.

This has been an exceptional year for the Service and everyone involved can be very

proud of what we have achieved.

Our transformational

journey continues

Parliamentary

Service is

transforming

the service and

support members

of Parliament can

expect day to day.

As we celebrate

30 years of the

Service, and complete year two of our

transformational journey, our ambition is

to work seamlessly across the organisation

to deliver the services that members of

Parliament value, at the right time and to

consistently high standards. We have a clear

roadmap of the ongoing work needed to

achieve our 2020 Vision of being recognised

for excellence and innovation.

During the year, we worked closely with

members of Parliament to really understand

their needs and expectations. Adopting a

customer-focused approach, we instigated

changes to our service delivery model in

direct response to their feedback. This

significant piece of work lays the foundation

for the rest of this strategic journey and

beyond. Such changes in the customer

experience are being supported by

improvements to business processes across

the Service, and there is huge energy among

our staff to make these happen.

Rewarding and empowering our people

Tremendous progress has been made in the

way we develop and support our people to

carry out their roles. This is central to the

Service achieving excellent standards in

service delivery. These improvements are

in direct response to the 2014 Performance

Improvement Framework review that

identified weaknesses in our people

management space.

In 2015/16, we implemented three

frameworks centred on remuneration,

performance management, and behaviours.

These were supported by a talent

programme designed to identify and

harness the talent of our people leaders. We

intend to roll this out to other leadership

levels in future years. We also refreshed our

Code of Conduct to further help protect

staff by making it clear what is acceptable

and what is not in a political environment.

These successes underpin our focus on

fairly rewarding and empowering all our

Annual Report

2015 - 20167

people to grow in their roles and to deliver

consistent and timely services to members of

Parliament.

Maintaining the fabric of Parliament

We have an important role in making sure

the buildings are maintained to a

high standard, reflecting their importance

and status as the foundation of New

Zealand’s democracy. During the year we

completed a multi-million dollar upgrade to

the exterior of Parliament House as well as

strengthening the physical security of the

precinct.

Our levels of security threats are changing.

The physical security improvements

undertaken this year, which form part of

a multi-year programme, are intended

to strengthen the safety of those who

work at and visit Parliament. In the virtual

environment, we have also made significant

progress in strengthening the resilience

of the information communication and

technology (ICT) network on precinct as well

as improving the network connectivity to

the out-of-Parliament offices. This supports

our philosophy of supporting members and

staff to have anytime, anywhere access to

their information and systems. Our thinking

on how we can transition our services to

a cloud-based environment is now well

advanced.

During the year, in response to the

introduction of the Health and Safety at

Work Act 2015, we refreshed our health and

safety management framework. We are now

in the process of implementing this across

the organisation. One of the complicating

factors here is a requirement under the

new legislation for continuous shared

responsibility with members of Parliament

for aspects of health and safety.

Aligning with other Parliaments

There are a number of significant roles

within Parliament and during the last year,

the Chamber and Gallery functions were

re-organised to align with what we regard

as best practice. Following the retirement of

the previous Serjeant-at-Arms in March 2016

after 13 years, this role and the Chamber

team transitioned to the Office of the Clerk.

Our Security team took over responsibility

for the operation of the Public Gallery.

My thanks to all staff at the Service for their

continuing commitment and energy and for

making the Parliamentary Service a great

place to work. I would like to acknowledge

the support that the Speaker has extended

to me personally as well as the drive, energy

and support of my Executive Leadership

Team as we continue our transformational

journey.

I would also like to thank the Clerk of

the House and his staff for working in a

collaborative partnership as all of us work to

establish better outcomes for Parliament.

David Stevenson

General Manager

30 September 2016

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2015 - 20168

Annual Report

2015 - 20169

Ab

ou

t us

Annual Report

2015 - 201610

About usThe Service is a group of 740 people passionate about upholding New Zealand’s democracy.

Across the country, in communities and at Parliament itself, we work with the country’s

members of Parliament as they interact with each other and with their constituents to ensure

they have access to the services they need. We guide, protect, inform and support. We aim to

be the benchmark for innovation and exceptional service delivery.

Our structure

Our responsibilities and servicesWe are responsible for providing administrative and support services to members of

Parliament and the House of Representatives and we have a team responsible for facilitating

this. We also administer, in accordance with directions given by the Speaker, the payment

of funding entitlements for parliamentary purposes. Our empowering legislation is the

Parliamentary Service Act 2000.

Members of Parliament fulfil a range of roles, including:

providing a government

making and passing legislation

scrutinising the activities of government

and holding it to account

developing policy

assisting constituents

debating public issues

as representatives in a parliamentary

democracy

Our structureThe Service has six business groups:

Finance

Information Systems and Technology

Organisational Strategy and Performance

Parliamentary Library

People and Culture

Precinct Services

Annual Report

2015 - 201611

To assist them to do this, we provide the tools, staff and working environment members

require to work as effectively as possible, both in Parliament itself and at their out-of-

Parliament offices:

Services to members

Employer of member support staff

Out-of-Parliament office administration,

management services and security

Research and information services

Health, safety and wellbeing services

Travel services

Funding advice

Information and communication services

Financial and accounting services

Payroll and HR services

Services on the parliamentary precinctWe also provide a range of services to other agencies and users of the parliamentary

precinct:

Catering

Information and communication

services

Security and emergency response

coordination

Facilities and building management,

including building projects,

management of heritage buildings and

contract management

Reception services

Messenger and mail services

Visitor services including education

services, tours and the Parliament shop

Annual Report

2015 - 201612

In addition, we deliver services to specific agencies:

Group and service Agencies and groups Description

Information

Systems and

Technology

(IST)

Computing

backbone

network

All

Provision of the

computing backbone

network (including

physical infrastructure,

firewalls, mail gateway

and support), network

and telephony platform.

Strategic advice

Internal

networks

and software

systems

Ministerial Support

Office of the Clerk

Joint service desk,

common desktop,

managed services, user

training, application

hosting, development

and maintenance

Server

hosting

Central Agency Shared

Services

Hosting of the IST

infrastructure, including

but not limited to servers

Parliamentary Library -

Information and research

services

All staff and users of the

parliamentary precinct

Tailored information and

research services. Limited

services are available to

members of the public

Finance

Finance

services

Office of the Clerk

Parliamentary Counsel Office

Accounts processing,

financial reporting and

budgeting, Treasury

interfaces, compliance

with accounting

regulations and audit

services.

Strategic advice

TravelMinisterial Support

Former members

International and

domestic travel

arrangements

People and

Culture

Payroll

Services

Office of the Clerk


For Ministers on behalf of

Ministerial Support

Full payroll services

Annual Report

2015 - 201613

Ou

r ac

hiev

emen

ts th

is y

ear

Annual Report

2015 - 201614

Annual Report

2015 - 201615

Highlights from the year Gold rating from Be.Accessible

Over 40% of women in senior leadership

roles

Upgraded ICT network connectivity to

124 electorate offices

Redesign of ICT network infrastructure at

Parliament

Over 91,000 visitors to Parliament

Developed and implemented new

performance, behavioural and

remuneration frameworks for Corporate

Support Staff

81% overall customer satisfaction

Over 11,500 information requests

answered by Parliamentary Library

Completed $7m project to repair exterior

of Parliament House

Certificate of excellence award from Trip

Advisor for quality of visitor services

10-Day Festival of Parliament in July

Annual Report

2015 - 201616

Our achievements this yearThe political environment is abuzz with ideas, debate and urgency. It’s an arena where

everything happens quickly, where situations can change dramatically, where committed

people work alongside and in opposition to each other for the good of everyone. For

this system to work to its very best, it needs strong and assured support. Here’s how we

performed against the objectives outlined in our Strategic Intentions 2014-18.

Outcome: The House

of Representatives and

members receive high

quality servicesWe strive to provide a range of services

to members and parties, to assist them to

fulfil their role as elected representatives

and legislators, as set out in the Speaker’s

Directions and within Appropriations. We

have three goals to achieve this outcome.

Goal #1: members and agencies on the

parliamentary precinct are able to work

flexibly and effectively wherever they are.

How did we do?

Our target is that satisfaction levels equal

or exceed 80% with the services provided.

In 2015/16, customer satisfaction with IST

service provision was above target at 82%,

a 3% increase on the previous year’s result.

Our customers also received quality access to

key IST services during business hours. There

was a total of 312 minutes of outage for the

whole year, resulting in a 99.8% average for

network access.

What did we do?

a) Improved technology to enable flexible and

efficient working conditions for members and

other agencies

We redesigned and renewed the core

network on the parliamentary precinct,

improving its resilience as well as updating

the applications stack to provide improved

applications availability to all users. We also

implemented ‘Office in a Box’ (a refreshed

Wide Area Network) solution for 124

members’ out-of-Parliament offices. This

solution replaced the outdated network

connection technology with up-to-date fibre

connections, resulting in faster connectivity

to the parliamentary precinct network and

increased reliability.

Our Information Systems and Technology

team has significantly increased the training

delivered to staff in members’ out-of-

Parliament offices—up from 2% in 2015

to 19% in 2016 (as a percentage of overall

training delivered). This complements our

continued focus on supporting anytime,

anywhere access using a range of supported

mobile devices.

b) Continuous business improvement and

improved staffing model for members

The Service’s Financial Management

Information System was upgraded. A portal

for easy access to the financial reporting

system was rolled out in June 2016.

We developed and implemented a

learning and development framework for

members’ support staff. This provides tools,

resources and learning solutions to ensure

development needs are being met and that

staff are equipped to better support their

members. This complements the staffing

model for members established at the start

of this parliamentary term.

Annual Report

2015 - 201617

Towards the end of the year, we also started

work on improving our business processes.

Complementing this stream of work is a new

service delivery model to help members

of Parliament navigate our services easier.

Dedicated managers now support and act

as the manager of members’ support staff.

A case management capability has also

been established to assist members with

their service requests, particularly those that

require a cross-functional response.

c) New Speaker’s Directions that enable more

flexibility to help members perform their work

We started work on reviewing the current

set of Speaker’s Directions—the operating

framework for members—following the

report of the Sixth Triennial Appropriations

Review Committee (ARC), presented to

Parliament in November 2015. The ARC

is convened each parliamentary term to

consider the funding of the Parliamentary

Service and members. A Working Party of

members—supported by the Service—is

now considering the recommendations of

the Sixth ARC. These recommendations will

then feed into the creation of new Speaker’s

Directions, which will be in place in time for

the 52nd Parliament.


parliamentary precinct receive high quality

services

How did we do?

Our target is that members’ satisfaction

levels equal or exceed 80% relating to the

transition between each parliamentary

term, and that targets relating to key

service delivery points, e.g. HR and

Finance, are met.

Members’ satisfaction with services provided

during the parliamentary transition was not

measured as there was no general election

during 2015/16. Customer satisfaction with

the provision of Finance services was below

target at 75%, but up 2% on last year. HR and

Travel services were rated at 80% and 90%

respectively. The HR result was up 10% on

last year.

What did we do?

We implemented new remuneration,

performance management and behavioural

frameworks for corporate support staff. A

new talent programme which focused on

identifying, developing and retaining key

staff was also introduced, and a refreshed

Code of Conduct completed.

In the finance area, we improved processes

and efficiencies to support the delivery of

high quality services. We also reduced the

number of small value invoices. In fact, total

invoices processed have decreased by over

42% in the past three years.

Our travel services continue to be highly

regarded, with 90% of customers satisfied

with the services provided.


parliamentary precinct receive quality

information, research and collection

services.

How did we do?

Our target is that satisfaction levels equal

or exceed 80% relating to these services,

and uptake of these services meets

targets.

Customer satisfaction with the Library is very

high at 94%. 100% of members and their

staff used the Parliamentary Library at least

once in the year, with 98% using the Library’s

services five or more times and 94% using it

ten or more times in the year.

What did we do?

a) On-going access to library information and

services in a timely manner

The Parliamentary Library completed over

11,500 requests, an increase of 11.5% on the

previous year.

Annual Report

2015 - 201618

The Debate Packs Service was new to

the Library in 2015/16. These packs are a

compilation of material on bills, including:

a brief synopsis of the bill; statements from

political parties; stakeholder commentary;

and media coverage. They are designed to

save time for customers writing speeches.

The Library produced 110 packs this year.

We are continuing to obtain better statistics

on the size and make-up of the Library’s

physical collection, following a review.

The Library holds 180,000 items including

50,000 books, 50,000 serials, and an array

of parliamentary publications and maps.

During the year, work focused on processing

serials into the retained collection, and

working with the National Library of New

Zealand and other institutions to review the

Library’s disposals.

The Library’s Information Management

team introduced a record keeping audit.

Two business systems were audited to

better understand the nature and value

of the business records they contained.

This led to recommendations to relevant

senior managers within the Service on

improvements to business processes and

recordkeeping interventions.

Two of our Library staff went to Fiji to assist

their Parliamentary Library with research

services. We assisted in preparing briefing

materials ahead of their national budget as

well as helping to establish a research service

for the Library.

Outcome: An

accessible ParliamentNew Zealand’s Parliament is a fundamental

cornerstone of New Zealand’s representative

democracy. We pride ourselves on ensuring

all New Zealanders are able to participate

and have access to our Parliament. We

do this by encouraging students and the

general public to visit, either in person or

online, to learn about our democracy, our

history, and the process of developing

and passing legislation. The Office of the

Clerk and the Service work together as the

parliamentary sector to identify and deliver

initiatives which will further enhance public

knowledge and respect for Parliament. We

have three goals to achieve this outcome.

Goal #1: the public can learn about and

engage with the parliamentary process.

How did we do?

Our target is public uptake and use of

parliamentary education resources meets

targets, and user satisfaction shows those

resources are fit for purpose.

In a survey of users of online education

resources, 89.5% of those surveyed said they

were fit for purpose. This was down from

96% last year. There were over 1,900 new

visitors to the education resources webpage,

and over 500 education resource packs were

sent out to teachers.

What did we do?

a) Resources that better educate students and

the public about Parliament

As the survey results showed, our Education

Services resources for educators and

students continued to be in high demand.

Our Education Services team presented at

four professional development sessions

for teachers alongside other LEOTC

providers (Learning Experiences Outside the

Classroom) from the Wellington region.

Annual Report

2015 - 201619

These sessions allow teachers to find

out more about the visit options and the

resources available at Parliament.

More educational groups have visited

Parliament than in previous years. We

hosted 552 group visits in 2015/16, up from

547 the previous year.

b) Engaging the public through events and

activities that interest, inform and involve the

public

We increased the number and variety of

tours and education programmes. The new

historical tour “The People’s Parliament”

along with “Parliament in Wartime” were

both popular. More educational groups

have participated in “How Parliament Works”

programme and other programmes on offer.

Forty art tours showcasing Parliament’s

collection were also run for the general

public and for special interest groups. Tours

combined with High Tea in Bellamy’s dining

room continue to be well received and have

now become a regular feature on the annual

events programme.

New tours have been tested such as

“Women in Parliament” and “Portraits and

Personalities” and are now available for

groups. Tours were also offered in New

Zealand Sign Language and in Mandarin this

year.

The quality of our educational service

continues to be recognised through the

annual visitor survey. 97% of respondents

rated the service good or excellent and 97%

of visitors would recommend the tour to

family and friends. The visitor experience

is also highly rated through comments and

the Certificate of Excellence award on Trip

Advisor.

In July 2015 Parliament participated in

the city-wide celebration of 150 years of

Wellington as the capital city. Members of

the public came to Parliament for a range of

special events such as performances from

the New Zealand Symphony Orchestra and

the New Zealand School of Music along with

a range of tours. The event culminated in an

open air concert by Dave Dobbyn and the

Orpheus Choir on the steps of Parliament

and a light and sound show projected onto

the facade of Parliament House.

Following on from the public interest in this

event the Parliament Sector worked together

to deliver the “Festival of Parliament”—a

10 day festival of a range of events to

engage and inform members of the public

about aspects of Parliament. Events such

as “Question Time Explained” and “Have

your Say” allowed for deeper conversations

to take place. Evening tours were also

offered outside of normal operating hours to

encourage different people to attend. These

were well subscribed.

c) Improvements in informational content

about Parliament and improved public access

to it

The new Parliament website was launched

in June 2016. This was a collaborative

effort with the Office of the Clerk. The new

website replaced the previous version built

in 2006, and features improved design and

functionality, and a better overall experience

for users.

d) Engage with new and hard-to-reach

audiences, using a variety of channels,

including social media

New electronic signage was erected on

the parliamentary precinct showcasing the

times of select committee hearings and

parliamentary tours. This was designed to

improve the accessibility of information and

improve the overall customer experience for

visitors.

Our Twitter statistics continue to trend

upwards as we make use of high

engagement opportunities in addition to the

more day to day matters. Around 75% of our

followers are in the 18 to 34 age bracket. The

number of followers increased by 1,961 to

Annual Report

2015 - 201620

a total of 11,194, an average increase of 164

followers per month compared to 146 the

previous year. The average number of tweets

sent per month was 58, up slightly from 54.

Tweet ‘impressions’ were significantly up on

the previous year, with a peak in May 2016 of

178,000.

Based on public response, an Android

version of the Virtual House app was created

in March 2016. The app was first launched in

May 2015. It allows users to:

search for members and view their

biography via the Parliament website

locate where an MP sits in the House

use an interactive display of the seating plan

watch or listen to Parliament TV on a wireless

or a cellular connection

email MPs via information on the Parliament

website.

Goal #2: the parliamentary precinct is safe,

used, and maintained effectively.

How did we do?

Our target is that project and maintenance

deliverables in the Capital Asset

Management Plan are completed to

agreed standards. And targets related to

the management of the precinct are met.

The deliverables for 2015/16 in the capital

asset management plan were met.

What did we do?

a) Effective and efficient management of

parliamentary assets

Our Capital Asset Management Plan was

created to ascertain the expected end-of-life

date for all building assets. This Plan forms

the basis for the multi-year, forward-looking

capital finance plan and serves as a tool to

ensure existing assets’ depreciation rates

are timed to expire at the assets’ anticipated

end-of-life date. Effective use of this Plan

should ensure there are no significant

unplanned plant failures and parliamentary

assets remain available to support the

buildings and business of Parliament.

For example, this year, all the expensive to

maintain and operate metal halide lights in

Parliament House were replaced with LED

inserts. This change takes the replacement

cycle from 2,500 hours to 50,000 hours, and

more than halves the energy consumption of

the lights.

b) Buildings and grounds on the parliamentary

precinct are fit-for-purpose

The exterior repair work to Parliament House

(a heritage listed building) was completed

in May 2016. Work began in September

2014 to replace the aging grout between

all the marble exterior panels and to apply

a new membrane roof over the top of the

existing roof. This required capital funding

of over $7m for the two years of the project

and should ensure the preservation of this

building for another 100 years.

There is ongoing work in improving the

physical accessibility of Parliament. An audit

by Be.Accessible (a social change initiative

dedicated to creating a truly accessible

country) resulted in the Service being

recognised with a Gold award in June 2016

for the degree of accessibility around the

precinct.

Security on the parliamentary precinct has

improved with upgraded exterior CCTV

and a range of physical improvements to

strengthen the perimeter security. A new

set of contingency plans for the precinct has

been written and tested in live exercises. In

June 2016, work started on the installation of

retractable vehicle bollards to the entrances

of the precinct. Training and education

relating to security is being provided to all

five agencies based on the precinct.

Annual Report

2015 - 201621

Outside of the parliamentary precinct,

information relating to risk is being shared

with members’ out-of-Parliament office

staff, making their work environment safer.

Security training to all members’ out-of-

Parliament offices, based in their offices, is

being rolled out through to November 2016.

Annual Report

2015 - 201622

Annual Report

2015 - 201623

Mea

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ng

ou

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perfo

rman

ce

Annual Report

2015 - 201624

1 The CMT underpins the Kiwi Count Survey methodology used to measure New Zealanders’ satisfaction with the provision of public services.2 This is lower than previous iterations of the survey conducted in 2013, 2014 and 2015. The average response rate overall through the years has decreased from 44% to 41%.3 1 = very dissatisfied and 5 = very satisfied

Measuring our

performanceAlongside weekly meetings between our General Manager and the Speaker of the House

of Representatives, we also report on an exceptions basis. Our standards and performance

measures are set out in two key accountability documents:

Estimates of Appropriation, which set

out key non-financial performance

standards and measures for each output

Strategic Intentions, which sets out our

operating intentions and medium-term

strategic priorities

Member support staff satisfactionOur annual customer satisfaction survey with member support staff was conducted in

June — July 2016. It is designed to assist us to effectively measure satisfaction, understand

expectations, and measure our performance against key drivers of satisfaction. The survey

itself draws upon international best practice and uses the Common Measurements Tool

(CMT) for the design of questions and the measurement scales1 . The 33% response rate was

lower than in previous years2.

The survey asked for satisfaction ratings using a 5-point rating scale3 for the following

services:

Asset Management and Maintenance

Finance

People and Culture

Information Systems and Technology


Member Services

Travel

Security

Reception

Telephony

Annual Report

2015 - 201625

We aim for an overall customer satisfaction rating of 80%4 . This year, our overall customer

satisfaction index rating of 81% was identical to the previous year. Below you can see the

customer satisfaction scores for each part of our organisation that was surveyed, along with a

comparison to previous years.

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

Annual Report

2015 - 201626

The red circles highlight how overall satisfaction with our People and Culture team and

Information Systems and Technology team has increased from the first year the survey was

conducted in 2013 by 6% and 2% respectively and achieved the 80% performance target

this year. The black circles reveal that overall satisfaction with both Member Services and

Telephony Services has continued to increase.

Overall, five of the ten service teams achieved our satisfaction benchmark rating of 80%. At

75%, Finance and Reception Services still have room for improvement, although, as noted

earlier, Finance achieved a 2% increase on 2015.

Given the lower response rate this year, it is difficult to attribute specific factors to those

scores that have declined, particularly for the Asset Management and Maintenance team.

Possibly the latter is due to the timing of the survey in the parliamentary term.

While there has been consistency in the overall customer satisfaction score over the past four

years (2013:79%, 2014:83%, 2015 and 2016: 81%), the lower response rate and a perception

among some member support staff that they were not a suitable proxy for members

has prompted us to review the effectiveness of this survey method. We are now trialling

alternative approaches to measuring customer satisfaction from members.

The provision of resources and services to his

office

The timeliness, accuracy, consistency,

impartiality, and solutions focus of the advice

he has received

The advice on Parliamentary Service and

Entitlements for the Parliamentary Service

Commission.

Speaker’s satisfaction

Each year, the Speaker is asked to complete a survey rating his satisfaction with:

The survey asks the Speaker to rate his satisfaction on a 5-point rating scale 5. In the May

2016 survey, the Speaker rated his satisfaction as 5 across all three areas. This was an

identical result to that for the previous three years.

5 1 = very dissatisfied and 5 = very satisfied

Annual Report

2015 - 201627

Privacy

Privacy of information is something we take very seriously. We are in a unique situation in

that we manage information for members and are the service provider for other agencies on

the precinct. However, under the Privacy Act, our legal privacy constraints relate to personal

information about current or former employees. This year, we carried out a self-assessment

on meeting good practice for privacy management and governance, and established a

formal register for privacy breaches which is discussed regularly by the Executive Leadership

Team. We also conducted an ICT security risk assessment on our online performance

management system, Cornerstone, given that it’s hosted in the cloud. The news was good:

a successful outcome for our privacy focus. In the next 12 months, we are looking to drive

forward a privacy work programme and update our information governance strategy to

reflect our changing operating environment and concurrent activities.

Strategic Risk Management

Our General Manager has overall responsibility for ensuring a risk management framework

is embedded within the Service and that all our organisational risks are managed to

the expectations of the Speaker. This framework provides a systematic process for the

identification and evaluation of organisational risks. Our Executive Leadership Team is then

responsible for identifying the key risks that may impact on the achievement of the strategic

objectives, for finding mitigation strategies, and for monitoring the effectiveness of these

strategies.

All our people have a responsibility to identify and manage risk. A management assurance

programme, which includes internal audit and legislative compliance, ensures that the

mitigation strategies for key operational risks are being managed effectively.

Our risks, set out below, could impact on our systems, processes and management practices,

our wider operating environment, and thereby the reputation of the Speaker’s Office,

members and Parliament:

Annual Report

2015 - 201628

Risk Explanation of the risk

Failure to deliver on our people

outcomes

The Service does not have the appropriate

culture or workforce capability/capacity to work

seamlessly across groups to deliver high quality

services

Technology does not deliver on our

customer need

The Service does not have the right infrastructure

and tools to enable us and those we serve to work

securely whenever and wherever we / they are

We are not customer centric

The Service doesn’t engage effectively with key

stakeholders (including the Speaker, members

and members’ support staff, parliamentary

agencies, public and the media) and so fails to

understand the expectations of service and the

public’s need for access to Parliament

We don’t provide excellent services

The Service fails to understand the service

levels that are expected, and therefore fails to

deliver core services and agreed service levels to

stakeholders

The workplace is not ‘fit-for-purpose’

Precinct buildings are not maintained sufficiently

to retain their integrity, appearance, and utility.

A failure of physical or information security leads

to a serious breach of privacy or the release of

sensitive/confidential information, impacts on

critical functions (e.g. ICT network), disruption of

physical accessibility of Parliament, disruption of

operations or service delivery

We don’t work as a parliamentary

sector

The Service fails to align with sector priorities.

The sector fails to achieve its strategic outcomes

leading to a loss of confidence from the Speaker

We have risk mitigation strategies in place for all these identified risks, and a process to

monitor the effectiveness of these strategies.

Annual Report

2015 - 201629

Our appropriations

We achieved the majority of agreed performance standards this year against our

appropriations. Each appropriation is detailed below together with an assessment of

performance (both financial and non-financial).

Support services to the Speaker

The intention of this appropriation is to provide funding to the Speaker to run his office as

well as to provide for external triennial reviews of the appropriations supporting Parliament.

Measure Performance standard 2014-15 result 2015-16 result

The Speaker is satisfied

with the provision of

resources and services

to his office

Customer satisfaction of

at least 4 on a scale of 1 to

5 in the annual Speaker’s

satisfaction survey

Achieved

Score of

5 overall

satisfaction

Achieved

Score of 5 overall

satisfaction

Financial Performance Actual Approved Appropriation

(Figures are $000s and GST exclusive) 2016 2016

Total expenditure 350 366

Annual Report

2015 - 201630

Operations, Information and Advisory Services

multi-category expense

The intention of this appropriation is the successful operation of Parliament. The

parliamentary precinct must meet the constitutional and institutional requirements of

a Parliament; that is, providing accessibility and security, a forum for debate and public

participation, and effective office facilities and support services.


Customers are satisfied

with the overall quality

of services

Survey respondents

report an 80% or more

(weighted mean)

overall quality of service

satisfaction rating

Achieved

81%

Achieved

81%

Building and Operations Management

The intention of this appropriation is to achieve building maintenance and operational

services.


The public has access

to the parliamentary

precinct via

parliamentary tours and

education visits6

75,000 - 80,000 people Achieved

87,392

people visited

Parliament

Achieved

84,502 people

visited Parliament

Visitors undertaking

a parliamentary tour

rate the parliamentary

experience as good or

excellent

90% of visitors rate their

parliamentary experience

as good or excellent

Achieved

98% of visitors

rated their

experience

as good or

excellent

Achieved

97% of visitors

rated their

experience as

good or excellent

The public gallery

of the House of

Representatives is

available for the public

to access

The public gallery of the

House of Representatives

is available for the public

to access 99% of the time

of its sitting

Achieved Achieved

6 Please note there is an inaccurate assessment of performance in the Supplementary Estimates of Appropriation 2015/16: “The public has access to the parliamentary precinct via tours, education, visits and the public gallery.” The performance standard is measured by the number of people taking a parliamentary tour and education visitors and is reflected in the wording to the measure above.

Annual Report

2015 - 201631


The condition of our

heritage buildings

is maintained to

reflect their national

significance and these

are accessible to the

disabled community

Deliverables from the

2015/16 Capital Works

plan are completed.

Accessibility

improvements are

delivered

Achieved

New measure

Achieved

Achieved

The parliamentary

precinct and out-of-

Parliament (OOP) offices

are safe and secure

PSR action plan

developed with 20-

30% of deliverables

implemented7

New measure Achieved

63% of

deliverables

implemented

100% of OOP offices

which have been

assessed have the

required improvements

implemented

New measure Not achieved

57% of offices

which have been

assessed have

the required

improvements

implemented8

95% of security incidents

on the precinct resolved

successfully with accurate

post-incident reporting

submitted within 12 hours

of any incident

New measure Not achieved

All incidents

were resolved

successfully

but 49% of

post-incident

reports were not

completed within

12 hours 9



Total expenditure 28,099 27,933

7 PSR is Protective Security Requirements.8 This result was taken at the end of a lengthy audit process resulting in a number of previously self-assessed compliant offices being found to require minor works to be truly compliant with the minimum standards. In July 2016, a rectification plan was put in place and this has achieved pleasing results. As at 23 September 2016, 78% of audited offices comply with the minimum standards.9 Although a disappointing result, this doesn’t truly reflect the progress made within the Security team as evidenced by the result in the implementation of the PSR action plan. The process from the independent auditor confirmed that Security staff responded to every incident in a timely manner (within 7 minutes of notification) and mitigated all immediate security risks in all cases. However, it is recognised that improvements need to be made in the reporting of incidents within 12 hours of any incident. A rectification plan is in place and improvements have started to be noticed.

Annual Report

2015 - 201632

Parliamentary Information, Communication and

Technology Services

The intention of this appropriation is to achieve the supply of information communications

and technology services.


Customers receive

quality network access

to email services, file

and print services,

internet and intranet

access via desktop or

mobile devices in the

precinct

Customers receive

quality network access

to email services, file and

print services, internet

and intranet access via

desktop or mobile devices

in the precinct 99.8% of

the time during business

hours10

Achieved

99.9%

Achieved

99.8%

On-site incidents for

out-of-Parliament

Offices are responded

to in a timely way

At least 90% of on-site

incidents for out-of-

Parliament Offices with

Priority 1 service status

are responded to on-site

within six business hours

Achieved

100%

Achieved

95%

No incidents

are reported of

unauthorised access

to members’ e-mail

or other electronic

data stored on the

Parliamentary network

due to PS ICT action or

inaction

No incidents are reported

of unauthorised access to

members’ e-mail or other

electronic data stored on

the Parliamentary network

due to PS ICT action or

inaction

Achieved

No incidents

were reported

of unauthorised

access to

members’

e-mail or other

electronic data

stored on the

parliamentary

network due

to the Service’s

action or

inaction

Achieved

No incidents

were reported

of unauthorised

access to

members’

e-mail or other

electronic data

stored on the

parliamentary

network due

to the Service’s

action or inaction


with the quality of ICT

services

Survey respondents report

an 80% or more (weighted

mean) overall quality of

service rating11

Not achieved

79%

Achieved

82%




10 Business hours are defined as 7.30am to 11.00pm while the House of Representatives is sitting and 7.30am to 6.00pm on non-sitting days.11 The customer satisfaction survey is based on the Kiwi’s Count Survey. The results of the survey are based on input from Members’ Support Staff as a proxy for MPs on advice from Audit NZ.

Annual Report

2015 - 201633


The intention of the appropriation is to achieve the supply of library services.



with the quality of

Library services.

Primary clients report an

80% or more (weighted

mean) overall quality of

service satisfaction rating.

Achieved

95%

Achieved

94%

Members and their staff

use of Library Services

per year:

• once or more

• five or more

• ten or more

Percentage of members

or their staff usage of

Library services per year:

• 97% once or more

• 80% five or more

• 60% ten or more

Achieved

100%

98%

92%

Achieved

100%

98%

94%




Personnel, accounting and advisory services to

members and other parliamentary agencies

The intention of this appropriation is to achieve the supply of finance, HR and advisory

services.


Provide timely

reporting, budgeting

and forecasting services

Financial information

is available within four

working days of month

end for 75% of the

financial year

Substantially

met12

Achieved

75%

12 Performance standard not met in the months of July and August 2014 due to year end, September and October impacted by the General Election period and January 2015 due to extended timeframes from Treasury.

Annual Report

2015 - 201634



with the quality of

financial, HR and Travel

services

Survey respondents

report an 80% or more

(weighted mean)

overall quality of service

satisfaction rating

Finance 73% Finance

Not achieved

75%

HR 78% HR

Achieved

80%

Travel – New

measure

Travel

Achieved

90%

Requests for

Employment

agreements for

Members’ staff are dealt

with in a timely manner

100% of requested

Employment Agreements

for Members’ staff are

provided within 3 working

days of receipt

Not achieved

90% completed

within 3 working

days of receipt

Substantially met

97% completed

within 3 working

days of receipt

Provision of accurate

and timely payroll

services to six

organisations13

The six payroll

organisations are

processed with a 99.5% to

100% accuracy rate

New measure Achieved

99.9%




13 The six payroll organisations are Parliamentary Service, Parliamentary Service (Crown), Members of Parliament, Ministers, Office of the Clerk of the House of Representatives and Parliamentary Counsel Office.

Annual Report

2015 - 201635

Department capital expenditure

This category ensures the Service has the correct facilities and tools to enable it to fulfil its

purpose to service New Zealand’s Parliament.

Unaudited

Actual 2016

$000

Main Estimates 2016

$000

Supp Estimates 2016

$000

Property Plant and

Equipment1,354 1,125 396

Intangibles 2,338 3,375 3,615

Total Appropriation 3,692 4,500 4,011

The series of network outages in February 2015 highlighted that the precinct network

environment was no longer capable of reliably supporting the modern demands of

Parliament information needs. As a result, a reprioritisation of the planned capital work

programme was required.

Annual Report

2015 - 201636

Annual Report

2015 - 201637

Ou

r Y

ear

of

the

Peop

le

Annual Report

2015 - 201638

Our Year of the PeopleParliamentary Service is a place for people with energy and open minds. It’s for those who

believe in the greater good, who enjoy being part of a diverse team and who are determined

to find robust and workable answers to the myriad of problems that come our way.

We operate in a complex yet unique environment requiring a broad range of skills and

expertise. We have two distinct workforces:

Members’ support staff workforce, who work

directly to members and within the party

political offices.

Corporate support staff, who provide a

range of services to members, agencies on

the wider parliamentary precinct and the

public.

We designated this year as our ‘Year of the People’ and successfully implemented a number

of organisational initiatives to build and strengthen our people capabilities.

Growing and developing

our people

Our focus as an organisation is changing.

Today, we want our teams to be thinking

about service, teams, respect and resilience.

That’s why our people have been actively

involved in shaping the vision for the Service

and forging links between what they do

and our organisation’s strategic direction.

While significant progress has been made

over the past twelve months, we are still on

a journey to improve capability, leadership

and address concerns around how we work

and perform overall as a culture.

Delivering superior customer service requires

people to feel empowered to be innovative

and creative. If we are to fulfil our goal of

being an employer of choice with a highly

engaged and passionate workforce, then the

ways in which we work must orientate to

finding answers, rethinking approaches, and

recognising that each of us from Parliament

itself to the smallest electorate office are

united by our wish to change what service

can mean, how it can work and who it suits.

To achieve such deep-seated change, we will

continue to:

develop an organisational culture that

bridges the gap between what our people

have identified as the preferred culture and

the current one. The preferred culture is

one where there is open communication

and people collaborate and get involved in

organisational initiatives. This culture will

encourage higher levels of staff engagement

and greater productivity as well as fostering

innovation. It will support the delivery of

high quality services to customers

ensure our people have the right skills and

tools to perform effectively. We will focus

Annual Report

2015 - 201639

on providing learning and development

opportunities to grow our people

employ recruitment and retention strategies

to acquire and foster new capabilities that

align with our overall direction

implement and embed customer

relationship management systems that

support decision making and make

greater use of knowledge sharing across

organisational boundaries

gather insights that allow us to anticipate

customer needs and respond to

opportunities for improvement.

Developing leadership,

management and

workforce capabilities

Sustainable change requires continually

improving the systems and processes that

enable us to carry out our core business.

This links directly with our business process

management initiative. We also need our

people to assume strong strategic leadership

to successfully adopt and implement the

changes required by our stakeholders. To

achieve those ends, we have successfully

developed and implemented the following

programmes of work:

Remuneration framework (completed)

A transparent and sustainable remuneration

framework for corporate support staff was a

key priority. We recognised that the existing

framework was not fit for purpose, that the

salary ranges had fallen behind the market

and that the remuneration framework

we had was contributing to difficulties in

recruiting and retaining staff.

We worked with the Public Service

Association (PSA) and external remuneration

specialists to develop and implement a

broad banding remuneration framework

and career matrix. The new framework was

ratified and introduced from 1 September

2015. It will ensure we retain staff, attract

talent, are competitive in the market and

more effective in our succession planning,

and continue to build capability across our

organisation.

Performance and behavioural framework

(completed)

We implemented a new performance

management and behavioural framework for

corporate support staff, collectively known

as Shaping My Future. This framework aligns

our objectives with our strategic plan and

enables robust performance conversations

to take place on a regular basis. The

behavioural framework determines the

desired behaviours staff need to possess and

display in their roles. Two organisational

behaviours were identified as critical, now

form part of everyone’s performance plan,

and align with our vision and strategic

initiatives: customer focus; and the ability to

communicate effectively.

Shaping My Future is supported by the

readily-accessible online cloud based

tool Cornerstone, which our people will

use on an ongoing basis for planning,

tracking progress, performance reviews and

capturing development plans.

Talent programme (completed)

We implemented a programme to identify,

develop and retain key talent to ensure we

have a pool of talented leaders to meet the

future needs of the organisation. Based

on the talent framework developed by the

State Services Commission (SSC) for use by

Annual Report

2015 - 201640

agencies across the state sector, our talent

programme enables participation in the

Career Boards.

Led by the SSC and Chief Executives from

across the sector, the Boards review and

plan the development of senior leaders

and lead succession planning for key

positions. Participation in these Boards

provides a significant opportunity for

leadership development. In line with the

SSC talent management framework, our

talent programme is based on a nine box

grid approach. This is used to evaluate

individuals on both performance and

potential.

The initial focus is on Executive and senior

leaders. In time, this will be expanded to

leaders at all other levels and ultimately to

all other permanent staff. The programme

will ensure we have the right people with the

right skills and talent in the right positions.

Leadership programme (in progress)

We are currently developing a leadership

development framework with associated

learning and development opportunities

to support leaders to embed Shaping My

Future and to strengthen overall leadership

capability across the organisation. This will

be a multi-year programme to empower

leaders and enable them to confidently and

effectively lead their people.

Learning and development framework (in

progress)

We have developed and implemented a

learning and development framework for

members’ support staff. This provides tools,

resources and learning solutions to ensure

their development needs are being met

and they are equipped to better support

members.

As part of Shaping My Future, we are also

using on-going performance discussions to

tailor relevant learning and development

solutions for corporate support staff in

Wellington.

Induction and orientation (in progress)

We regularly facilitate engaging and

informative induction and orientation

programmes for members’ support staff. The

programme helps staff gain clarity about

how their role contributes to the institution

of Parliament, understand our unique and

diverse work environment and know the

tools and networks available to support

them on a day to day basis.

We are now planning to expand these

programmes with a robust on-boarding

programme targeted at corporate support

staff in Wellington and members’ support

staff. This will ensure that staff are exposed

to a positive on-boarding experience from

the outset.

Code of conduct (completed)

We refreshed our Code of Conduct

through a consultative process, involving

representatives from across the organisation

and the unions. This document sets out

the behavioural standards expected of all

Parliamentary Service employees. Launched

in February 2016, the refreshed document

is more in line with the organisation today

and has been well received by staff. It will be

particularly important during the upcoming

election periods.

Health and safety (in progress)

We are committed to protecting the health

and safety of our staff and others accessing

facilities, both here at Parliament and at

members’ out-of-Parliament offices. Driven

by the introduction of the Health and

Safety at Work Act 2015, we refreshed our

health and safety management framework

and are now implementing this across the

organisation. This new framework is based

on the Australia/New Zealand standard. It

Annual Report

2015 - 201641

sets the expectations the Service has of

its management and staff as well as the

methodology for assessing and managing

health and safety risk.

One of the key risks we face is security

associated with members’ out-of-Parliament

offices. We need to balance our commitment

to an accessible Parliament and democracy

with ensuring that staff and visitors to

members’ offices are kept safe. We are

working with members, who also have

responsibilities for health and safety, to

jointly meet our obligations under the new

Act. The focus in the coming year is on

reassessing the Service’s risk profile based

on a new risk assessment methodology and

providing resources and training for staff on

security-related risk.

Future focus

Looking ahead, we are committed to

implementing six further programmes of

work over the next three years:

developing a flexible working strategy

developing a diversity strategy

developing organisational values to support

our vision and strategic direction

conducting an organisation-wide culture/

engagement survey

developing an employee value proposition

refreshing the performance review

framework for members’ support staff.

Annual Report

2015 - 201642

Our workforce

As of 30 June 2016, the Service employs 748

staff, equivalent to 649.7 full time equivalent

staff (FTEs). This contrasts with 705 staff,

equivalent to 637 FTEs, as of 30 June 2015.

62% of staff are employed to support

members of Parliament or the Party Political

offices (member support staff), while 38%

provide corporate support services and

advice on behalf of the General Manager of

the Parliamentary Service.

We have seen a significant reduction in un-

planned turnover (annualised) of corporate

support staff from 12% in 2014 to 7.2% in

201614. This compares favourably with the

Public Sector average of 10.9%.

Diversity, Equal

Employment

Opportunities (EEO)

We pride ourselves on offering our people a

flexible working and work-life balance. This

is reflected in the fact that over a third of

our workforce is part-time, of which 74% are

female15. We recognise the value of flexible

working and diversity and are currently

developing a flexible working strategy and

diversity strategy.

Gender profile

Our workforce is made up of 62% women.

This is higher than the 2015 Public Service

figure of 60.5%. 41% of women are in senior

leadership positions.

14 Unplanned turnover includes resignations, retirements, dismissals and deaths and excludes all Fixed Term employees.15 Part-time workforce refers to staff working less than a 40 hour week.

Annual Report

2015 - 201643

Ethnicity profile

2016 Public Service June 2015 NZ working age 2015

Māori 14.6% 16.4% 12.9%

Pacific 5.5% 8.0% 5.8%

Asian 6.2% 8.5% 11.7%

Note:

Not all staff record their ethnicity. We have

revised our method for calculating ethnicity

figures in line with that of the State Services

Commission.

Our workforce is represented by 44 different

ethnicities; an increase from 35 in the

previous year. Our representation for people

identifying as Māori, Pacific and Asian is

slightly lower than that of the overall Public

Service. However our representation for

Māori is higher than the NZ working age

population (2015) for this group.

Annual Report

2015 - 201644

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

the preparation of the Parliamentary Service’s financial statements, and statements of

expenses and capital expenditure, and for the judgements expressed in them;

having in place a system of internal control designed to provide reasonable assurance as to

the integrity and reliability of financial reporting;

ensuring that end of year performance information on each appropriation administered by

the Parliamentary Service is provided in accordance with sections 19A to 19C of the Public

Finance Act 1989, whether or not that information is included in this annual report;

and

the accuracy of any end of year performance information prepared by the Parliamentary

Service, whether or not that information is included in the annual report.

In my opinion:

the financial statements fairly reflect the financial position of the Parliamentary Service as at

30 June 2016 and its operations for the year ended on that date; and

the forecast financial statements fairly reflect the forecast financial position of the

Parliamentary Service as at 30 June 2017 and its operations for the year ending on that date.

David Stevenson

General Manager

30 September 2016

Annual Report

2015 - 201645

Annual Report

2015 - 201646

Independent Auditor’s Report

To the readers of

Parliamentary Service’s

Annual Report for the year ended 30 June 2016

The Auditor-General is the auditor of the Parliamentary Service (the Service). The Auditor-

General has appointed me, Karen Young, using the staff and resources of Audit New Zealand,

to carry out the audit on her behalf of:

• the financial statements of the Service on pages 53 to 82 that comprise the statement

of financial position, statement of commitments, statement of contingent liabilities

and contingent assets as at 30 June 2016, the statement of comprehensive revenue

and expense, statement of changes in equity, and statement of cash flows for the year

ended on that date and the notes to the financial statements that include accounting

policies and other explanatory information;

• the performance information prepared by the Service for the year ended 30 June 2016

on pages 16 to 21 and 24 to 35; and

• the statements of expenses and capital expenditure of the Service for the year ended

30 June 2016 on pages 83 and 84 and 104 to 109; and

• the schedule of expenditure on travel entitlements of former members and their

spouse or partner on pages 110 to 115; and

• the schedules of non-departmental activities which are managed by the Service on

behalf of the Crown on pages 86 to 103 that comprise:

• the schedules of assets, liabilities and revaluation reserves, commitments,

contingent liabilities and assets as at 30 June 2016;

• the schedules of expenses, and revenue for the year ended 30 June 2016; and

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

information.

Opinion

In our opinion:

• the financial statements of the Service:

• present fairly, in all material respects:

· its financial position as at 30 June 2016; and

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

• comply with generally accepted accounting practice in New Zealand and have

been prepared in accordance with the Public Benefit Entity Standards.

• the performance information of the Service:

• presents fairly, in all material respects, for the year ended 30 June 2016:

· what has been achieved with the appropriation; and

· the actual expenses or capital expenditure incurred compared with the

appropriated or forecast expenses or capital expenditure; and

Annual Report

2015 - 201647

• complies with generally accepted accounting practice in New Zealand.

• the statements of expenses and capital expenditure of the Service on pages 83 and

84 and 104 to 109 are presented fairly, in all material respects, in accordance with the

requirements of section 45A of the Public Finance Act 1989;


spouse or partner is presented fairly, in all material respects; in accordance with section

42 of the Members of Parliament (Remuneration and Services) Act 2013

• the schedules of non-departmental activities which are managed by the Service

on behalf of the Crown on pages 86 to 103 present fairly, in all material respects, in

accordance with the Treasury Instructions:

• the assets, liabilities and revaluation reserves, commitments, contingent liabilities

and assets as at 30 June 2016; and

• the expenses, and revenue for the year ended 30 June 2016.

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

information.

Our audit was completed on 30 September 2016. This is the date at which our opinion is

expressed.

The basis of our opinion is explained below. In addition, we outline the responsibilities of the

General Manager and our responsibilities, and we explain our independence.

Basis of opinion

We carried out our audit in accordance with the Auditor-General’s Auditing Standards,

which incorporate the International Standards on Auditing (New Zealand). Those standards

require that we comply with ethical requirements and plan and carry out our audit to obtain

reasonable assurance about whether the information we audited is free from material

misstatement.

Material misstatements are differences or omissions of amounts and disclosures that, in

our judgement, are likely to influence readers overall understanding of the information we

audited. If we had found material misstatements that were not corrected, we would have

referred to them in our opinion.

An audit involves carrying out procedures to obtain audit evidence about the amounts

and disclosures in the information we audited. The procedures selected depend on our

judgement, including our assessment of risks of material misstatement of the information

we audited, whether due to fraud or error. In making those risk assessments, we consider

internal control relevant to the Service’s preparation of the information we audited in order to

design audit procedures that are appropriate in the circumstances, but not for the purpose of

expressing an opinion on the effectiveness of the Service’s internal control.

An audit also involves evaluating:

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

consistently applied;

• the reasonableness of the significant accounting estimates and judgements made by

the General Manager;

• the appropriateness of the reported performance information within the Service’s

framework for reporting performance;

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

• the overall presentation of the information we audited.

We did not examine every transaction, nor do we guarantee complete accuracy of the

information we audited. Also, we did not evaluate the security and controls over the

Annual Report

2015 - 201648

electronic publication of the information we audited.

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

our audit opinion.

Responsibilities of the General Manager

The General Manager is responsible for preparing:

• financial statements that present fairly the Service’s financial position, financial

performance, and its cash flows, and that comply with generally accepted accounting

practice in New Zealand;

• performance information that presents fairly what has been achieved with each

appropriation, the expenditure incurred as compared with expenditure expected

to be incurred, and that complies with generally accepted accounting practice in

New Zealand;

• statements of expenses and capital expenditure of the Service, that are presented

fairly, in accordance with the requirements of the Public Finance Act 1989;


spouse or partner; and

• schedules of non-departmental activities, in accordance with the Treasury Instructions,

that present fairly those activities managed by the Service on behalf of the Crown.

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

The General Manager is responsible for such internal control as is determined is necessary

to ensure that the Annual Report is free from material misstatement, whether due to fraud

or error. The General Manager is also responsible for the publication of the Annual Report,

whether in printed or electronic form.

Responsibilities of the Auditor

We are responsible for expressing an independent opinion on the information we are

required to audit, and reporting that opinion to you based on our audit. Our responsibility

arises from the Public Audit Act 2001.

Independence

When carrying out the audit, we followed the independence requirements of the Auditor-

General, which incorporate the independence requirements of the External Reporting Board.

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

Karen Young

Audit New Zealand

On behalf of the Auditor-General

Wellington, New Zealand

Annual Report

2015 - 201649

Fin

anci

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16

Annual Report

2015 - 201650

Financial overviewFor the year ended 30 June 2016

The Parliamentary Service (the Service) was appropriated $56.9m in the financial year

2015/16 to administer the functions of the 51st Parliament and provide support services to

members of the House of Representatives. Additional appropriations administered by the

Service on behalf of the Crown include funding for party and member support, member

salaries, depreciation and various travel and communications costs.

Parliamentary Service Operational Expenditure:

Expenditure of $56.4m was recorded for the year against the appropriation and other

revenue received by the Service leaving a surplus of $0.7m. This surplus arose due to some

projects continuing into 2016/17.

On a functional level, providing building and operational management of the parliamentary

precinct remains the largest cost driver within the Service. A total of $28.1m was spent on

providing this service in 2015/16. This includes the significant cost of providing security

services within and surrounding the precinct. Security at Parliament operates on a 24 x 7

x 365 basis so carries a significant operational cost. The precinct based security team also

monitor and assist with safety and security matters for all 135 out of Parliament offices. In

addition to those operational aspects, there is an ongoing programme of work to improve

the security of the precinct by way of investment in technology, hardware and training.

This programme of work is driven by three criteria – the need to keep all staff and visitors

safe while enjoying New Zealand’s open and accessible Parliament; to meet the increased

needs under new Health and Safety legislation; and to ensure Parliament is compliant with

the government mandated Protective Security Requirements. Unfortunately the world

continues to change, so Parliament’s security needs to be able to respond to any increase in

threat and risk levels.

Information, communication and technology services cost the Service $15.4m in 2015/16.

The majority of this cost was driven from providing ICT services to members and support

staff. This includes providing hardware, network infrastructure, mobile computing, software

services, cyber security and helpdesk functions.

The Service spent $7.8m on human resources support, finance, member services and

advisory services within the 2015/16 financial year. Substantial investment within this

cost has been made in enhancing the Service’s process management – with the ultimate

goal of providing seamless cross-functional services to members and support staff.

Particular emphasis is focussed on preparation for the next general election where multiple

transitioning of members, out of Parliament offices and support staff will take place.

Parliamentary Library costs totalled $4.8m for 2015/16. This is the cost of providing research

and information services to members and their support staff.

Annual Report

2015 - 201651

Relative Operational Spends - Parliamentary Service 2015/16

Capital Expenditure

The Service incurs capital expenditure both at a departmental level, as part of the normal

course of Parliamentary Service business, as well as at a non-departmental level on behalf of

the Crown.

Departmental Capital Expenditure

The Service incurred Departmental capital expenditure of $3.7m. The vast majority of this

expenditure was incurred in upgrading a number of major IT systems and the network

infrastructure.

Non-Departmental Multi Year Appropriation

The 2015/16 financial year was the last year in the 4 year non-departmental multi-year capital

expenditure appropriation.

Total capital spend against the appropriation for the year was $8.5m. The major project

and associated spend for the year was the repairs and renewal of the exterior of Parliament

House. This is a once-in-25 years repairs to the exterior including the marble, grouting and

waterproofing. Despite the complexity and a number of issues found during the three year

work plan – the project came in within 1% of budget.

Other major projects include an enhancement of security around the precinct perimeter,

replacing all light fittings within the Parliament House public areas with energy efficient

Annual Report

2015 - 201652

long-life LED lighting, re-carpeting four floors of the Executive Wing, re-carpeting areas

within Parliament House, installation of electronic signage in the primary public interface

areas of the precinct, and completing some disability accessibility initiatives which raised the

Service’s Be.Accessible rating from Silver to Gold.

The 2016/17 Financial Year – looking aheadThe Parliamentary Service will face considerable cost pressures as we head into the 2016/17

financial year. A number of additional activities are required, putting strain on our established

fiscal envelope.

Heightened security concerns stemming from both domestic and international events have

increased the required level of protective security services the Service provides. In addition to

these concerns and as part of our commitment to the health and safety of our people, work

continues on upgrading the security measures within member offices across the country.

Whilst some of this cost is met by party and member support funding, the Service will be

contributing to this cost where more significant enhancements are deemed necessary.

The Service will continue to focus on its Business Process Management – the refining of

our cross functional processes – as we head into the 2016/17 financial year as part of our

preparation for the next general election.

2016/17 will also see the Service fully introduce our new remuneration framework which

is designed to ensure the Service attracts and retains talent and is more effective in its

succession planning.

The Service is also required to investigate the long term accommodation strategy for the

parliamentary precinct as the lease on Bowen House, which houses much of the Office of the

Clerk, the Service and various members and Ministers, nears its renewal date.

Annual Report

2015 - 201653

Statement of comprehensive

revenue and expense For the year ended 30 June 2016

Unaudited

Actual

2015

$000 Note

Actual

2016

$000

Main

Estimates

2016

$000

Supp

Estimates

2016

$000

Forecast

2017

$000

Revenue

58,472 Crown 50,553 49,097 50,553 51,147

4,904 Departmental 2 5,868 5,037 5,585 5,716

581 Other revenue 2 682 1,042 758 599

63,957 Total revenue 57,103 55,176 56,896 57,462

Expenses

27,693 Personnel 3 21,499 20,973 22,318 22,643

5,096 Depreciation and amortisation 8 & 9 5,283 5,551 5,324 5,339

2,092 Capital charge 4 2,092 2,092 2,092 2,092

28,016 Other expenses 5 27,526 26,560 27,162 27,388

62,897 Total expenses 56,400 55,176 56,896 57,462

1,060 Surplus 703 - - -

-Other comprehensive revenue

and expense- - - -

1,060Total comprehensive

revenue and expense703 - - -

Explanations of major variances against the original 2015/16 budget are provided in Note 18.The notes to the accounts form part of and are to be read in conjunction with these financial statements.

Annual Report

2015 - 201654

Unaudited

Actual

2015

$000 Note

Actual

2016

$000

Main

Estimates

2016

$000

Supp

Estimates

2016

$000

Forecast

2017

$000

Assets

Current assets

3,536 Cash and cash equivalents 3,528 6,370 4,778 5,247

9,670 Debtors and other receivables 6 11,854 8,330 9,880 10,830

842 Prepayments 741 850 850 850

142 Inventory 7 79 45 45 45

14,190 Total current assets 16,202 15,595 15,553 16,972

Non-current assets

10,837 Property, Plant & Equipment 8 9,244 8,730 8,239 5,823

7,289 Intangible assets 9 7,276 8,471 8,574 10,001

18,126 Total non-current assets 16,520 17,201 16,813 15,824

32,316 Total assets 32,722 32,796 32,366 32,796

Liabilities

Current liabilities

3,192 Creditors and other payables 10 3,836 4,000 4,000 4,000

1,060 Return of operating surplus 12 703 - - -

1,441 Employee entitlements 11 1,420 2,220 1,810 2,220

5,693 Total current liabilities 5,959 6,220 5,810 6,220

Non current liabilities

467 Employee entitlements 11 607 420 400 420

6,160 Total liabilities 6,566 6,640 6,210 6,640

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

Taxpayers’ funds

26,156 Taxpayer funds 13 26,156 26,156 26,156 26,156

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


Statement of financial position As at 30 June 2016

Annual Report

2015 - 201655

Unaudited

Actual

2015

$000 Note

Actual

2016

$000

Main

Estimates

2016

$000

Supp

Estimates

2016

$000

Forecast

2017

$000

26,156 Balance as at 1 July 2015 26,156 26,156 26,156 26,156

1,060Total comprehensive revenue and

expense703 - - -

Owner Transactions

(1,060)Return of operating surplus to

Crown12 (703) - - -

26,156 Balance as at 30 June 2016 26,156 26,156 26,156 26,156

Statement of changes in taxpayers’

funds For the year ended 30 June 2016


Annual Report

2015 - 201656

Unaudited

Actual

2015

$000 Note

Actual

2016

$000

Main

Estimates

2016

$000

Supp

Estimates

2016

$000

Forecast

2017

$000

Cash flows from operating

activities

57,413 Receipts from Revenue Crown 48,592 49,097 50,112 50,147

5,495 Receipts from other revenue 6,491 6,129 6,663 6,365

(28,422) Payments to suppliers (26,821) (26,636) (26,592) (27,465)

(28,929) Payments to employees (21,405) (20,467) (21,995) (22,136)

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

140 Goods and services tax (net) (21) - 217 -

3,605Net cash flow from operating

activities4,744 6,031 6,313 4,819

Cash flows from investing

activities

(77)

Receipts from sale of property,

plant and equipment and

intangibles

4 - - -

(1,356)Purchase of property, plant and

equipment(1,354) (1,125) (396) (465)

(3,474) Purchase of intangible assets (2,338) (3,375) (3,615) (3,885)

(4,907)Net cash flow from investing

activities(3,688) (4,500) (4,011) (4,350)

Cash flows from financing

activities:

- Capital injections - - - -

(923) Return of operating surplus (1,060) - (1,060) -

(923)Net cash flow from financing

activities(1,060) - (1,060) -

(2,225)Net increase/(decrease) in cash

held(8) 1,531 1,242 469

5,761Cash at the beginning of the

year3,536 4,839 3,536 4,778

3,536 Cash at the end of the year 3,528 6,370 4,778 5,247

Statement of cash flows

For the year ended 30 June 2016


Annual Report

2015 - 201657

Unaudited

Actual

2015

$000 Note

Actual

2016

$000

Main

Estimates

2016

$000

Supp

Estimates

2016

$000

Forecast

2017

$000

1,060 Net surplus 703 - - -

Add/(less) non-cash items

5,096 Depreciation and amortisation 5,283 5,551 5,324 5,339

78Inc/(Dec) in non-current

employee entitlements140 - - -

23 Inc/(Dec) in GST Payable (27) (21) 217 -

5,197 Total non-cash items 5,396 5,530 5,541 5,339

Add/(less) movements in

deferrals and accruals

(868) (Inc)/Dec in debtors (2,184) 50 176 50

34 (Inc)/Dec in prepayments 101 - (394) (1,000)

(98) (Inc)/Dec in inventory 63 - 97 -

(637)Inc/(Dec) in creditors and other

payables675 21 591 -

(1,127)Inc/(Dec) in provision for current

employee entitlements(21) 430 302 430

(2,696)Total net movement in

working capital items(1,366) 501 772 (520)

Add/(Less) investing activity

items

44

Loss/(Gain) on disposal of

property, plant and equipment

and intangibles

11 - - -

3,605Net cash flow from operating

activities4,744 6,031 6,313 4,819

Statement of cash flows (continued)

For the year ended 30 June 2016Reconciliation of net surplus/(deficit) to net cash flow from operating activities

The GST (net) component of operating activities reflects the net GST paid and received with the Inland

Revenue Department. The GST (net) component has been presented on a net basis, as the gross

amounts do not provide meaningful information for financial statement purposes.


Annual Report

2015 - 201658

Statement of commitments

As at 30 June 2016

Non-cancellable operating lease commitments

The Service has long-term leases on its premises in Wellington. The annual lease payments

are subject to three yearly reviews. The amount disclosed below as future commitments is

based on the current rental rates.

2015

$000

2016

$000

Non-cancellable operating lease commitments

7,377 Not later than one year 7,396

19,386 One to five years 13,471

5,628 More than five years 5,951

32,391 Total non-cancellable operating lease commitments 26,818

The Service leases four properties. Bowen House is a lease covering levels Ground to 21 for

office accommodation, two residential units and car parks. No. 3 the Terrace is for select

committee and meeting room accommodation with a separate lease at No.1 The Terrace

used for Parliamentary TV. The Thorndon Store is used as an off-site storage facility only.

There are no contingent rents; they are all fixed term. There are no restrictions imposed by

the lease arrangements and only the No. 3 The Terrace lease is cancellable after 24 years from

the start of the lease.

There is an escalation clause on No. 3 The Terrace of an annual fixed increase in rent at 3%

compounding as well as regular market-rate reviews. There are no escalation clauses for the

Bowen House, No. 1 The Terrace or Thorndon Store leases.

Bowen House has two rights of lease renewal dates every eight years with a final expiry of 14

December 2034. This lease is currently subject to rent review effective from December 2014.

The rent review is currently in arbitration. The result of this arbitration may cause either a

contingent liability or contingent asset as at 30 June 2016. Given the ongoing nature of the

arbitration the Service is unable to reliably estimate the outcome. The Thorndon Store lease

renewal date is 1 September 2021. The No. 3 the Terrace has no lease renewal dates; No. 1 The

Terrace has a termination date of 31 December 2018.

Other non-cancellable commitments

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

services and other contracts for services.

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

Annual Report

2015 - 201659

Operating leases as a lessor

The Service has three non-cancellable leases related to retail operations in Bowen House. The

Service also has cancellable leases related to accommodation tenancies in Bowen House and

office tenancies in Bowen House and Parliament House.

2015

$000

2016

$000

Non-cancellable operating leases

494 Not later than one year 927

1,193 One to five years 1,248

- More than five years -

1,687 Total non-cancellable operating leases 2,175

Statement of contingent liabilities

and contingent assets

As at 30 June 2016

Contingent liabilities

There were no quantifiable contingent liabilities in 2016 (2015: nil). The Service has recently

completed an audit on compliance with the Holidays Act 2003 and is currently working

through recommendations. The financial impact of the recommendations is yet to be

determined.

Unquantifiable contingent assets

There are no unquantifiable contingent assets in 2016 (2015: nil).

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

Annual Report

2015 - 201660

Notes to the financial statements

Note 1 Statement of accounting policies

Reporting entity

Parliamentary Service (the “Service”) is a Government Department as defined by the

Public Finance Act 1989 (PFA) and is domiciled and operates in New Zealand. The relevant

legislation governing the Service’s operations includes the PFA and the Parliamentary Service

Act 2000. The Service’s ultimate parent is the New Zealand Crown.

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

The Service’s primary objective is to provide services to members of Parliament and other

agencies rather than making a financial return.

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

purposes.

The financial statements of the Service are for the year ended 30 June 2016. The financial

statements were authorised for issue by the General Manager on 30 September 2016.

Basis of preparation

The financial statements have been prepared on a going concern basis, and the accounting

policies have been applied consistently throughout the period.

Statement of compliance

The financial statements of the Service have been prepared pursuant to the Public Finance

Act 1989, which include the requirement to comply with New Zealand generally accepted

accounting practice (NZ GAAP), and Treasury Instructions.

The financial statements have been prepared in accordance and compliance with Tier 1 PBE

accounting standards.

Standards issued and not yet effective and not early adopted

In 2015, the External Reporting Board issued Disclosure Initiative (Amendments to PBE

IPSAS 1), 2015 Omnibus Amendments to PBE Standards, and Amendments to PBE Standards

and Authoritative Notice as a Consequence of XRB A1 and Other Amendments. These

amendments apply to PBEs with reporting periods beginning on or after 1 January 2016. The

Service will apply these amendments in preparing its 30 June 2017 financial statements. The

Service expects there will be no effect in applying these amendments.

Annual Report

2015 - 201661

Measurement base

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

Presentation currency and rounding

The financial statements are presented in New Zealand dollars and all values are rounded to

the nearest thousand dollars ($000). The functional currency of the Service is New Zealand

dollars.

Changes in accounting policies

There have been no changes in accounting policy during the year ending 30 June 2016.

Restatement of prior year comparatives

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

The following significant accounting policies, which materially affect the measurement

of financial results and financial position, have been applied consistently to all periods

presented in these financial statements.

Significant accounting policies

Revenue

Revenue Crown

Revenue from the Crown is measured based on the Service’s funding entitlement for the

reporting period. The funding entitlement is established by Parliament when it passes the

Appropriation Acts for the financial year. The amount of revenue recognised takes into

account any amendments to appropriations approved in the Appropriation (Supplementary

Estimates) Act for the year and certain other unconditional funding adjustments formally

approved prior to balance date.

There are no conditions attached to the funding from the Crown. However, the Service can

incur expenses only within the scope and limits of its appropriations.

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

entitlement.

Departmental revenue

Departmental revenue is recognised when earned.

Rental revenue

Rental revenue under an operating sublease is recognised as revenue on a straight-line basis

over the lease term.

Annual Report

2015 - 201662

Capital Charge

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

Foreign Currency

Foreign exchange transactions (including those for which forward foreign exchange

contracts are held) are translated into New Zealand dollars using the spot exchange rates at

the date of the transactions. Foreign exchange gains and losses resulting from the settlement

of such transactions and from the translation at year-end exchange rates of monetary assets

and liabilities denominated in foreign currencies are recognised in the surplus or deficit.

Leases

Finance Leases

A finance lease is a lease that transfers to the lessee substantially all of the risks and rewards

incidental to ownership of an asset, whether or not title is eventually transferred.

At the commencement of the lease term, the Service recognises finance leases as assets and

liabilities in the Statement of Financial Position at the lower of the fair value of the leased

item and the present value of the minimum lease payments.

The amount recognised as an asset is depreciated over its useful life. If there is no certainty

as to whether the Service will obtain ownership at the end of the lease term, the asset is fully

depreciated over the shorter of the lease terms and its useful life.

Operating leases

An operating lease is a lease that does not transfer substantially all the risks and rewards

incidental to ownership of an asset.

Lease payments under an operating lease are recognised as an expense on a straight-line

basis over the lease term.

Lease incentives received are recognised in the surplus or deficit as a reduction of rental

expense over the lease term.

Cash and cash equivalents

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

The Service is only permitted to expend its cash and cash equivalents within the scope and

limits of its appropriations.

Debtors and other receivables

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

A receivable is considered impaired when there is evidence that the Service will not be able

to collect the amount due. The amount of the impairment is the difference between the

carrying amount of the receivable and the present value of the amounts expected to be

collected.

Annual Report

2015 - 201663

Inventory

Inventory held for distribution or consumption in the provision of services is measured at

cost adjusted, when applicable, for any loss of service potential. The Service applies the

weighted average cost method.

Inventory held for sale is valued at the lower of cost and net realisable value (using the

weighted average cost method).

The amount of any write-down for the loss of service potential or from cost to net realisable

value is recognised in the surplus or deficit in the period of the write-down.

Property, plant and equipment

Property, plant, and equipment consists of furniture, plant and equipment, office equipment,

computers, motor vehicles, leasehold improvements, and telecommunication equipment.

Property, plant, and equipment acquired through non-exchange transactions is measured at

fair value at the date of acquisition.

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

impairment losses.

All property, plant and equipment costing more than $2,000 excluding GST is capitalised and

recorded at historical cost.

Additions

The cost of an item of property, plant, and equipment is recognised as an asset if it is

probable that future economic benefits or service potential associated with the item will flow

to the Service and the cost of the item can be measured reliably.

Work in progress is recognised at cost less impairment and is not depreciated. The total cost

of this work is transferred to the relevant asset category on its completion.

Disposals

Gains and losses on disposals are determined by comparing the disposal proceeds with the

carrying amount of the asset. Gains and losses on disposals are included in the statement of

comprehensive revenue and expense. When a revalued asset is sold, the amount included in

the revaluation reserve in respect of the disposed asset is transferred to taxpayers’ funds.

Subsequent costs

Costs incurred subsequent to initial acquisition are capitalised only when it is probable

that future economic benefits or service potential associated with the item will flow to the

Service and the cost of the item can be measured reliably. The costs of day to day servicing of

property, plant and equipment are recognised in the statement of comprehensive revenue

and expense as they are incurred.

Annual Report

2015 - 201664

Depreciation

Depreciation is provided on a straight-line basis on all property, plant, and equipment at

rates that will write-off the cost of the assets to their estimated residual values over their

useful lives. The useful lives and associated depreciation rates of major classes of property,

plant, and equipment have been estimated as follows:

Furniture 3 - 10 years 10% - 33.3%

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

Office equipment 3 - 10 years 10% - 33.3%

Computer systems 3 - 7 years 14.3% - 33.3%

Motor vehicles 5 years 20%

Leasehold property 3 - 34 years 2.9% - 33.3%

Telecommunications equipment 3 - 7 years 14.3% - 33.3%

Leasehold improvements are depreciated over the unexpired period of the lease or the

estimated remaining useful lives of the improvements, whichever is the shorter.

The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each

financial year-end.

Assets are purchased on behalf of members of Parliament including for their out-of-

Parliament offices. The useful life and associated depreciation rates for these assets are

aligned to the Parliamentary term or the remainder of the Parliamentary term.

Intangible assets

Software acquisition and development

Acquired computer software licenses are capitalised based on the costs incurred to acquire

and bring to use the specific software.

Costs that are directly associated with the development of software for internal use by

the Service are recognised as an intangible asset. Direct can costs include the software

development, employee costs, and an appropriate portion of relevant overheads.

Staff training costs are recognised as an expense when incurred. Costs associated with

maintaining computer software are recognised as an expense when incurred. Costs of

software updates or upgrades are only capitalised when they increase the usefulness or

value of the software.

Amortisation

The carrying value of an intangible asset with a finite life is amortised on a straight-line basis

over its useful life. Amortisation begins when the asset is available for use and ceases at the

date that the asset is derecognised. The amortisation charge for each period is recognised in

the surplus or deficit.

Annual Report

2015 - 201665

The useful lives and associated amortisation rates of major classes of intangible assets have

been estimated as follows:

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

Impairment of property, plant, and equipment and intangible assets

The Service does not hold any cash-generating assets. Assets are considered cash-generating

where their primary objective is to generate a commercial return.

Non-cash generating assets

Intangible assets subsequently measured at cost that have an indefinite useful life, or are not

yet available for use, are tested annually for impairment.

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

reviewed for impairment whenever events or changes in circumstances indicate that the

carrying amount may not be recoverable. An impairment loss is recognised for the amount

by which the asset’s carrying amount exceeds its recoverable amount. The recoverable

amount is the higher of an asset’s fair value less costs to sell and value in use.

Value in use is depreciated replacement cost for an asset where the future economic benefits

or service potential of the asset are not primarily dependent on the asset’s ability to generate

net cash inflows and where the Service would, if deprived of the asset, replace its remaining

future economic benefits or service potential.

If an asset’s carrying amount exceeds its recoverable amount, the asset is impaired and the

carrying amount is written down to the recoverable amount. The total impairment loss is

recognised in the surplus or deficit. The reversal of an impairment loss is recognised in the

surplus or deficit.

Creditors and other payables

Creditors and other payables are initially measured at face value.

Employee entitlements

Short-term employee entitlements

Employee benefits expected to be settled within 12 months of balance date are measured at

nominal values based on accrued entitlements at current rates of pay. These include salaries

and wages accrued up to balance date, annual leave earned but not yet taken at balance

date, retiring and long service leave entitlements expected to be settled within 12 months,

and sick leave.

A liability for sick leave is recognised to the extent that absences in the coming year are

expected to be greater than the sick leave entitlements earned in the coming year. The

amount is calculated based on the history of sick leave taken by all employees for the last

three years to derive the average amount of accrued sick leave taken over and above the

entitlement for the year.

Annual Report

2015 - 201666

Long-term employee entitlements

Employee benefits that are due to be settled beyond 12 months after the end of the

reporting period in which the employee renders the related service, such as long service

leave and retiring leave, are calculated using the Treasury guidance. The calculations are

based on:

likely future entitlements accruing to staff, based on years of service, years to entitlement,

the likelihood that staff will reach the point of entitlement, and contractual entitlements

information; and

the present value of the estimated future cash flows.

Expected future payments are discounted using market yields on government bonds at

balance date with terms to maturity that match, as closely as possible, the estimated future

cash outflows for entitlements. The inflation factor is based on the expected long-term

increase in remuneration for employees.

Superannuation schemes

Defined contribution schemes

Obligations for contributions to the State Sector Retirement Savings Scheme, Kiwi Saver and

the Government Superannuation Scheme (GSF) are accounted for as defined contribution

superannuation schemes and are recognised as an expense in the surplus or deficit as

incurred.

Defined benefit schemes

The Service belongs to the GSF. GSF is a defined benefit plan. Insufficient information is

available to use defined benefit accounting; as it is not possible to determine from the terms

of the scheme the extent to which the surplus or deficit will affect future contributions

by individual employers, as there is no prescribed basis for allocation. The Service has

employees who are members of the Government Superannuation Fund. This is a fully funded

Government scheme and as a result no liability is recognised. The scheme is therefore

accounted for as a defined contribution scheme

Provisions

A provision is recognised for future expenditure of uncertain amount or timing when there

is a present obligation (legal or constructive) as a result of a past event, it is probable that an

outflow of resources embodying economic benefits or service potential will be required to

settle the obligation, and a reliable estimate can be made of the amount of the obligation.

Provisions are not recognised for net deficits from future operating activities.

Provisions are measured at the present value of the expenditure and are discounted using

market yields on government bonds at balance date with the terms to maturity that match,

as closely as possible, the estimated timing of the future cash flows. The increase in the

provision due to the passage of time is recognised as an interest expense and is included in

“finance costs”.

Annual Report

2015 - 201667

Restructuring

A provision for restructuring is recognised when an approved detailed formal plan for the

restructuring has either been announced to those affected, or for which implementation has

already commenced.

Onerous contracts

A provision for onerous contracts is recognised when the expected benefits or service

potential to be derived from a contract are lower than the unavoidable cost of meeting the

obligations under the contract.

The provision is measured at the present value of the lower of the expected cost of

terminating the contract and the expected net cost of continuing with the contract.

Taxpayers’ funds

Taxpayers’ funds is the Crown’s investment in the Service and is measured as the difference

between total assets and total liabilities.

Commitments

Commitments are future expenses and liabilities to be incurred on contracts that have

been entered into as at balance date. Information on non-cancellable lease commitments is

reported in the statement of commitments.

Goods and services tax (GST)

The Financial Statements, including appropriation statements, are exclusive of GST, except

for Creditors and Debtors, which are GST inclusive. All other statements and notes are GST

exclusive.

The amount of GST owing to or from the Inland Revenue Department at balance date, being

the difference between Output GST and Input GST, is included in Creditors or Debtors, as

appropriate.

Commitments and contingencies are disclosed excluding GST.

Income tax

The Service is a public authority and consequently is exempt from the payment of income

tax in terms of the Income Tax Act 2007. Accordingly, no provision for income tax has been

made.

Statement of cost allocation policies

The Service has determined the cost of outputs using the cost allocation system outlined

below.

Annual Report

2015 - 201668

Direct costs are those costs directly attributed to an output. Indirect costs are those costs that

cannot be identified in an economically feasible manner with a specific output.

Direct costs are charged directly to outputs. Indirect costs are charged to outputs based on

cost drivers and related activity or usage information. Depreciation and capital charge are

charged on the basis of asset utilisation. Personnel costs are charged based on actual time

incurred.

Critical accounting estimates and assumptions

In preparing these financial statements, estimates and assumptions have been made

concerning the future. These estimates and assumptions may differ from the subsequent

actual results. Estimates and assumptions are continually evaluated and are based on

historical experience and other factors, including expectations of future events that are

believed to be reasonable under the circumstances. The estimates and assumptions that

have a significant risk of causing a material adjustment to the carrying amounts of assets and

liabilities within the next financial year are referred to below:

Useful lives of software

The useful life of software is determined at the time the software is acquired and brought

into use and is reviewed at each reporting date for appropriateness. For internally generated

software developed by the Service, the life is based on historical experience with similar

systems as well as anticipation of future events, which may impact their useful life, such as

changes in technology.

Critical judgements in applying accounting policies

Management has not exercised any significant critical judgements in applying accounting

policies for the year ended 30 June 2016.

Budget and forecast figures

Basis of the budget and forecast figures

The 2016 budget figures are for the year ended 30 June 2016 and were published in the

2014/15 annual report. They are consistent with the Service’s best estimate financial forecast

information submitted to Treasury for the Budget Economic and Fiscal Update (BEFU) for the

year ending 2015/16. The 2017 forecast figures are for the year ending 30 June 2017, which

are consistent with the best estimate financial forecast information submitted to Treasury for

the BEFU for the year ending 30 June 2017.

The forecast financial statements have been prepared as required by the PFA to

communicate forecast financial information for accountability purposes.

The budget and forecast figures are unaudited and have been prepared using the accounting

policies adopted in preparing these financial statements. The 30 June 2016 forecast figures

have been prepared in accordance with PBE FRS 42 Prospective Financial Statements and

comply with PBE FRS 42. The forecast financial statements were approved for issue on

1 April 2016. The General Manager is responsible for the forecast financial statements,

Annual Report

2015 - 201669

including the appropriateness of the assumptions underlying them and all other required

disclosures.

While the Service regularly updates its forecasts, updated forecast financial statements for

the year ending 30 June 2017 will not be published.

The forecast financial figures contained in these financial statements reflect the Service’s

purpose and activities and are based on a number of assumptions on what may occur

during the 2016/17 year. The forecast figures have been compiled on the basis of existing

government policies and Ministerial expectations at the time the Main Estimates were

finalised.

Significant assumptions used in preparing the forecast financials

The main assumptions, which were adopted as at 1 April 2016, were as follows:

The Service’s activities and output expectations will remain substantially the same as the

previous year focusing on the Government’s priorities.

Personnel costs were based on 270 full-time equivalent staff, which takes into account staff

turnover.

Operating costs were based on historical experience and other factors that are believed to be

reasonable in the circumstances and are the Service’s best estimate of future costs that will

be incurred. Remuneration rates are based on current wages and salary costs, adjusted for

anticipated remuneration changes.

Estimated year-end information for 2015/16 was used as the opening position for the

2016/17 forecasts.

Annual Report

2015 - 201670

Note 2: Departmental and other revenueUnaudited

Actual

2015

$000

Actual

2016

$000

Main

Estimates

2016

$000

Supp

Estimates

2016

$000

Forecast

2017

$000

2,958 ICT services including network support 2,805 2,564 2,600 2,600

1,168 Services to the Office of the Clerk 1,962 1,867 1,867 1,867

998 Rental revenue 1,008 888 950 950

148 Parliament shop trading 163 100 150 150

68 Services to other agencies 75 50 65 65

145 Other 537 610 711 683

5,485 Total departmental and other revenue 6,550 6,079 6,343 6,315

Note 3: Personnel costsUnaudited

Actual

2015

$000

Actual

2016

$000

Main

Estimates

2016

$000

Supp

Estimates

2016

$000

Forecast

2017

$000

28,345 Salaries and wages 20,839 20,660 21,753 22,348

286Employer contribution to defined

contribution plans*218 225 218 206

(1,049)Increase/(Decrease) in employee

entitlements365 12 266 12

111 Other 77 76 81 77

27,693 Total personnel costs 21,499 20,973 22,318 22,643

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

Note 4: Capital charge

The Service pays a capital charge to the Crown on taxpayers’ funds as at 30 June and 31

December each year. The capital charge for the year ended 30 June 2016 was $2.092 million

(2015 $2.092 million) at the rate of 8% (2015: 8%).

Annual Report

2015 - 201671

Note 5: Other expensesUnaudited

Actual

2015

$000

Actual

2016

$000

Main

Estimates

2016

$000

Supp

Estimates

2016

$000

Forecast

2017

$000

108Fees to Auditor for audit of financial

statements115 108 110 108

11 Impairment of intangible assets - (note 9) - - - -

5,314 Operating lease rentals 5,258 5,306 5,255 8,172

1,358 Consultancy 1,541 750 1,652 2,652

7,152 Information technology costs 6,662 6,855 6,855 7,108

4,122 Maintenance 4,020 4,107 4,107 4,612

3,823 Premises costs and utilities 3,703 3,637 3,637 3,901

298 Restructuring costs 348 - 60 -

-Net loss on disposal of property, plant,

and equipment11 - - -

5,830 Other expenses 5,868 5,797 5,486 835

28,016 Total other expenses 27,526 26,560 27,162 27,388

Note 6: Debtors and other receivablesUnaudited

Actual

2015

$000

Actual

2016

$000

Main

Estimates

2016

$000

Supp

Estimates

2016

$000

Forecast

2017

$000

9,089 Debtor Crown 11,050 8,030 9,530 10,530

284 Departmental 344 - - -

297 Other debtors 460 300 350 300

9,670 Total debtors and receivables 11,854 8,330 9,880 10,830

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

exchange transactions.

Departmental incorporates payments made on behalf of Parliamentary Service Crown

activity, the Parliamentary Counsel Office and the Office of the Clerk.

Annual Report

2015 - 201672

The Service had not yet been reimbursed for these payments at balance date. The carrying

value of debtors and other receivables approximates their fair value. The aging profile of

receivables at year end is detailed below:

Actual

2015

$000

Actual

2016

$000

9,670 Not past due 11,839

- Past due 1-30 days 3

- Past due over 30 days 12

9,670 Total 11,854

Note 7: Inventory

Inventory consists of items held for resale in the Parliamentary Shop and some computer

equipment. Inventory is carried at the lower of cost or net realisable value. The Parliamentary

Service applies a weighted average cost formula. Inventory is tested for impairment annually.

The write-down of inventories amounted to $nil (2015: $2k). No inventories are pledged as

security for liabilities or subject to retention of title clauses.

Actual

2015

$000

Actual

2016

$000

Held for distribution

104Inventories held for use in the provision of goods and

services46

Commercial activities

38 Shop stock held for sale 33

142 Total inventory 79

Annual Report

2015 - 201673

Cost or

valuation

Furniture Computers Office

equipment

Leasehold

Property

Improvements

Motor

Vehicles

Plant &

Equipment

Teleco

Equipment

Work in

Progress

Total

all units $000

Balance at 1

July 20143,445 11,403 1,549 20,487 143 4,574 742 596 42,939

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

Transfers

from work in

progress

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

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

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

Write Off - - - - - - - - -

Balance at 30

June 20153,566 12,022 1,486 20,783 126 4,982 759 216 43,940

Balance at 1

July 20153,566 12,022 1,486 20,783 126 4,982 759 216 43,940

Additions - 129 62 278 - - - 885 1,354

Transfers

from work in

progress

- 243 96 127 - 17 - (483) -

Adjustments - - - - - - - - -

Disposals - (1,006) (52) - - (208) - - (1,266)

Write Off - - - - - - - - -

Balance at 30

June 20163,566 11,388 1,592 21,188 126 4,791 759 618 44,028

Note 8: Property, plant and equipment

Annual Report

2015 - 201674

Furniture Computers Office

equipment

Leasehold

Property

Improvements

Motor

Vehicles

Plant &

Equipment

Teleco

Equipment

Work in

Progress

Total

all units $000

Accumulated depreciation and impairment losses

Balance at 1

July 2014(3,274) (8,968) (1,399) (11,415) (39) (4,362) (714) - (30,171)

Depreciation

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

Adjustments - - - - - - - - -

Eliminate on

disposal26 80 86 70 48 11 - - 321

Write Off - - - - - - - - -

Balance at 30

June 2015(3,359) (10,399) (1,382) (12,586) (17) (4,629) (731) - (33,103)

Balance at 1

July 2015(3,359) (10,399) (1,382) (12,586) (17) (4,629) (731) - (33,103)

Depreciation

expense(65) (1,235) (72) (1,355) (25) (167) (17) - (2,936)

Adjustments - - - - - - - - -

Eliminate on

Disposal- 1,006 41 - - 208 - - 1,255

Write Off - - - - - - - - -

Balance at 30

June 2016(3,424) (10,628) (1,413) (13,941) (42) (4,588) (748) - (34,784)

Carrying

amounts

At 30 June

2014171 2,435 150 9,072 104 212 28 596 12,768

At 30 June

2015207 1,623 104 8,197 109 353 28 216 10,837

At 30 June

2016142 760 179 7,247 84 203 11 618 9,244

Annual Report

2015 - 201675

all units $000

Acquired

Software

Internally

generated

software

Work in

progress Total

Cost or valuation

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

Additions 1,197 490 1,798 3,485

Transfers from work in

progress704 607 (1,311) -

Disposals (127) - - (127)

Impairment (11) - - (11)

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

Balance at 1 July 2015 10,674 1,489 1,828 13,991

Additions 14 - 2,324 2,338

Adjustments 9 (9) - -

Transfers from work in

progress2,288 - (2,288) -

Disposals (145) - - (145)

Impairment - - - -

Balance at 30 June 2016 12,840 1,480 1,864 16,184

Accumulated amortisation and impairment losses

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

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

Eliminate on disposal 77 - - 77

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

Balance at 1 July 2015 (6,299) (403) - (6,702)

Amortisation expense (2,103) (244) - (2,347)

Eliminate on disposal 141 - - 141

Balance at 30 June 2016 (8,261) (647) - (8,908)

Carrying amountsAcquired

Software

Internally

generated

software

Work in

progressTotal

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

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

At 30 June 2016 4,579 833 1,864 7,276

Note 9: Intangibles

Annual Report

2015 - 201676

Note 10: Creditors and other payablesUnaudited

Actual

2015

$000

Actual

2016

$000

Main

Estimates

2016

$000

Supp

Estimates

2016

$000

Forecast

2017

$000

Creditors and other payables under

exchange transactions

469 Trade creditors 156 3,500 3,500 3,500

2,440 Accrued expenses 3,425 - - -

2,909 Total under exchange transactions 3,581 3,500 3,500 3,500

Creditors and other payables under

non-exchange transactions

1 Accrued FBT expense - - - -

282 GST payable (receivable) 255 500 500 500

283 Total under non-exchange transactions 255 500 500 500

3,192 Total creditors and other payables 3,836 4,000 4,000 4,000

Creditors and other payables are non-interest bearing and are normally settled on 30-day

terms. Therefore, the carrying value of creditors and other payables approximates their

fair value. All creditors originate from exchange transactions with the exception of taxes

collected and held pending payment to the Inland Revenue Department on due date.

Note 11: Employee entitlementsUnaudited

Actual

2015

$000

Actual

2016

$000

Main

Estimates

2016

$000

Supp

Estimates

2016

$000

Forecast

2017

$000

Current Liabilities

352 Retirement and long service leave 367 555 452 862

1,069 Annual leave 1,021 1,665 1,358 1,358

20 Sick leave 32 - - -

1,441 Total current portion 1,420 2,220 1,810 2,220

Non-current liabilities

467 Retirement and long service leave 607 420 400 420

467 Total non-current portion 607 420 400 420

1,908 Total employee entitlements 2,027 2,640 2,210 2,640

Annual Report

2015 - 201677

Employee benefits

Treasury guidance was used to estimate the value of long service leave, retirement leave and

sick leave as at 30 June 2016. The major economic assumptions adopted in the valuation

process for long service and retirement leave were:

Salary increase rate: 2.00 – 3.00% per annum (2015: 1.4 - 2.1%)

Discount Rate: 1.95 – 3.13% per annum (2015: 2.93 – 4.39%)

For sick leave, the methodology was calculated according to Treasury guidance and assumes

that sick leave is a short-term compensated absence, as defined in PBE IPSAS 25.

Note 12: Return of operating surplus

Actual

2015

$000

Actual

2016

$000

1,060 Net surplus 703

1,060 Net surplus before other expenses 703

1,060 Total return of operating surplus 703

The return of operating surplus to the Crown is required to be paid by 31 October 2016.

Note 13: Taxpayers’ funds

Actual

2015

$000 Note

Actual

2016

$000

26,156 Balance at 1 July 2015 26,156

1,060 Surplus for year 703

Owner Transactions

(1,060) Return of operating surplus to the Crown 12 (703)

26,156 Balance at 30 June 2016 26,156

Annual Report

2015 - 201678

Note 14: Related party transactions

The Service is a wholly owned entity of the Crown.

Related party disclosures have not been made for transactions with related parties that are

within a normal supplier or client/recipient relationship on terms and conditions no more or

less favourable than those that it is reasonable to expect the Service would have adopted in

dealing with the party at arm’s length in the same circumstances. Further, transactions with

other government agencies (for example, Government departments and Crown entities)

are not disclosed as related party transactions when they are consistent with the normal

operating arrangements between government agencies and undertaken on the normal

terms and conditions for such transactions.

Significant transactions with government-related entities

The Service has received funding from the Crown of $51m (2015: $58m) to provide services

to the public, House of Representatives and support services and/or accommodation to

other government agencies, as part of a Service Level Agreement, for the year ended 30 June

2016. These agencies are:-

Office of the Clerk of the House of Representatives


Key management personnel remuneration

Actual

2015

$000

Actual

2016

$000

Leadership Team, including Chief Executive

1,303 Remuneration 1,676

There are no other employee benefits.

Key management personnel include the General Manager and six members of the Senior

Management Team, 7 FTE’s (2015: 6 FTE’s).

Note 15: Events after balance date

There were no significant events after balance date (2015: nil). As at 30 June the Service

was undertaking a review to the operating model for services provided to members of

Parliament.

Annual Report

2015 - 201679

Note 16: Financial Instruments16A - Financial instrument categories

The carrying amounts of financial assets and liabilities in each of the financial instrument

categories are as follows:

Unaudited

Actual

2015

$000

Actual

2016

$000

Main

Estimates

2016

$000

Supp

Estimates

2016

$000

Forecast

2017

$000

Financial assets measured at amortised

costs

Loans and receivables

3,536 Cash and cash equivalents 3,528 6,370 4,778 5,247

9,670 Receivables 11,854 8,330 9,880 10,830

13,206 Total loans and receivables 15,382 14,700 14,658 16,077

Financial liabilities measured at

amortised costs

3,192 Creditors and other payables 3,836 4,000 4,000 4,000

16B - Financial instruments risks

The Service is party to financial instrument arrangements as part of its everyday operations.

These include instruments such as bank balances, accounts receivable, and accounts payable.

The fair value of the Service’s financial instruments is the same as the carrying value.

The Service does not have any gains or losses on its financial instruments and no

impairments have been recognised to date.

All financial assets and liabilities are non-derivative in form and function and are neither

available for sale nor held to maturity.

The fair value of the financial instruments is deemed not materially different from valuation

at amortised cost. As a result, the carrying value of the instruments is at fair value.

Credit risk

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

the Service to incur a loss.

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

The maximum exposure from trade debtors is the value of the non-Government debtors i.e.

$460k (2015: $297k). Default is considered by management to be unlikely and the probable

exposure has been determined as negligible. There were no changes in receivables or

payables during the year that can be attributed to credit risk.

Annual Report

2015 - 201680

The Service is only permitted to deposit funds with Westpac Banking Corporation (Westpac),

a registered bank, and enter into foreign exchange forward contracts with the New Zealand

Debt Management Office (NZDMO).

The Service holds cash with Westpac. Westpac is part of the Crown Retail Deposit Guarantee

Scheme and so all deposits up to $1 million held with Westpac are guaranteed by the Crown.

The Service does not require any collateral or security to support financial instruments

with financial institutions that it deals with, or with the NZDMO, as these entities have

high credit ratings. For its other financial instruments, the Service does not have significant

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

risk.

Credit facilities

The Service does not have bank overdraft facilities as at 30 June 2016. The Service has a

letter of credit with Westpac for $10,000 for the purpose of staff cashing pay and expense

reimbursement cheques.

Currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will

fluctuate because of changes in foreign exchange rates.

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

Interest rate risk

Interest rate risk is the risk that the fair value of a financial instrument will fluctuate, or the

cash flows from a financial instrument will fluctuate, due to changes in market interest rates.

The Service has no interest bearing financial instruments and, accordingly, has no exposure

to interest rate risk.

Liquidity risk

Liquidity risk is the risk that the Service will encounter difficulty raising liquid funds to meet

commitments as they fall due.

In meeting its liquidity requirements, the Service closely monitors its forecast cash

requirements with expected cash drawdowns from the New Zealand Debt Management

Office. The Service maintains a target level of available cash to meet liquidity requirements.

The Service considers that it does not have a significant liquidity risk as it ensures it has

adequate working capital coverage at all times.

Annual Report

2015 - 201681

Exposure to risk

The Service is not aware of any exposure to risk regarding financial instruments that would

have a significant impact on operations.

Note 17: Capital management

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

represented by net assets.

The Service manages its revenues, expenses, assets, liabilities, and general financial dealings

prudently. The Service’s equity is largely managed as a by-product of managing revenue,

expenses, assets, liabilities and compliance with the government budget processes, the

Public Finance Act 1989 and Treasury Instructions.

The objective of managing the Service’s equity is to ensure the Service effectively achieves its

goals and objectives for which it has been established, whilst remaining a going concern.

Note 18: Explanation of major variances against

budget

Statement of comprehensive revenue and expense

The Main Estimates operating appropriation of $55.176m was revised to $56.896m due to:

Expense transfer from 2014/15 to 2015/16 - $1.056m increase

Cost recovery for providing information services to the Office of the Clerk - $0.558m increase

Transfer funding from Crown Multi Year Appropriation to Departmental to progress the

Future Accommodation Strategy - $0.500m increase

Rent and other operating costs from new sublease - $0.179m increase

Expense transfer from 2015/16 to 2016/17 - $0.600m decrease

Consultancy expenses are higher due to consultants for 6th Appropriation Review

Committee, the Service operating model review and the future accommodation strategy,

which were not included in the Main Estimates.

Annual Report

2015 - 201682

Statement of financial position

Cash and cash equivalents are less than Main Estimates budgeted but debtors and other

receivables (mainly Crown funding not drawn-down) are higher than Main Estimates. This

resulted from active cash management and improved cash forecasting.

Employee entitlements are higher than Main Estimates. The increase aligned with the

increase in personnel costs.

Annual Report

2015 - 201683

Appropriation statements

The following statements report information about the expenses and capital expenditure incurred against each appropriation administered by the Service for the year ended 30 June 2016.

Unaudited

Actual

2015

$000 Note

Actual

2016

$000

Main

Estimates

2016

$000

Supp

Estimates

2016

$000

Departmental output expenses*

6,831 Services to members - - -

433 Support services to the Speaker 350 225 366

7,264 Total departmental output expenses 350 225 366

Multi Category Appropriations*

15,093 Parliamentary information,

communications & technology services15,403 14,073 15,809

26,799 Building & operations management 28,099 27,685 27,933

4,601 Parliamentary library 4,750 4,738 4,738

9,140Personnel, accounting and advisory

services to members and other

parliamentary agencies

7,798 8,455 8,050

55,633 Total multi category appropriations 56,050 54,951 56,530

62,897 Total appropriation for output expenses 56,400 55,176 56,896

Parliamentary Service - capital expenditure*

4,863 Permanent Legislative Authority 3,692 4,500 4,011

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

Statement of departmental

expenses and capital expenditure

against appropriations


Annual Report

2015 - 201684

Statement of departmental


incurred without appropriation

or other authority or in excess of

an existing appropriation or other

authority


There was no Departmental unappropriated expenditure and capital expenditure in 2016

(2015: nil).

Statement of departmental capital

injections without, or in excess of,

authority


The Service did not receive any capital injections during the year without, or in excess of

authority in 2016 (2015: nil).

Annual Report

2015 - 201685

Fin

anci

al S

tate

men

tsP

arli

amen

tary

Ser

vice

Cro

wn

fo

r th

e y

ea

r e

nd

ed

30

Ju

ne

20

16

Annual Report

2015 - 201686

Non-departmental statements and

schedules

For year ended 30 June 2016

The following non-departmental statements and schedules record the revenue, expenses,

assets, liabilities, commitments and contingent liabilities that the Parliamentary Service

manages on behalf of the Crown.

Schedule of non-departmental

revenue


Unaudited

Actual

2015

$000

Actual

2016

$000

Main

Estimates

2016

$000

Supp

Estimates

2016

$000

190 Revenue 205 - -

190 Total non-departmental revenue 205 - -

The notes to the accounts form part of and are to be read in conjunction with these financial statements.For a full understanding of the Crown’s financial position and the results of its operations for the year, refer to the consolidated Financial Statements of the Government for the year ended 30 June 2016.

Annual Report

2015 - 201687


expenses


Unaudited

Actual

2015

$000

Actual

2016

$000

Main

Estimates

2016

$000

Supp

Estimates

2016

$000

Expenditure

Other expenses incurred by the Crown

24,103 Annual 20,762 21,578 22,678

44,564 Other 59,520 62,905 63,839

5,562Purchases and development of capital assets by the

Crown8,469 9,621 9,793

2,896 GST expensed 3,600 - -

77,125 Total non-departmental expenses 92,351 94,104 96,310


Annual Report

2015 - 201688


assets

As at 30 June 2016

Unaudited

Actual

2015

$000 Notes

Actual

2016

$000

Main

Estimates

2016

$000

Supp

Estimates

2016

$000

Current Assets

16,696 Cash and cash equivalents 2 11,850 22,223 20,904

9 Debtors 2 & 3 14 15 9

172 Prepayments 3 91 50 172

16,877 Total current assets 11,955 22,288 21,085

Non-current assets

433,206 Property, plant and equipment 4 471,183 427,437 428,998

450,083 Total non-departmental assets 438,138 449,725 450,083


Annual Report

2015 - 201689


liabilities and revaluation reserves

As at 30 June 2016

Unaudited

Actual

2015

$000 Notes

Actual

2016

$000

Main

Estimates

2016

$000

Supp

Estimates

2016

$000

Liabilities

Current liabilities

2,744 Creditors 5 3,151 4,065 2,741

800 Employee entitlements 1,323 - 801

3,544 Total current liabilities 4,474 4,065 3,542

Non current liabilities

17 Employee entitlements - - 20

17 Total non current liabilities - - 20

Revaluation reserve

63,000 Land revaluation reserve 4 & 6 63,000 63,000 63,000

163,375 Building revaluation reserve 4 & 6 212,769 163,375 163,375

7,366 Antique and art revaluation reserve 4 & 6 7,366 7,366 7,366

22,519 Library collection revaluation reserve 4 & 6 - 22,519 22,519

256,260 Total revaluation reserve 283,135 256,260 256,260

259,821Total non-departmental liabilities and

revaluation reserve287,609 260,325 259,822


Annual Report

2015 - 201690

Statement of non-departmental

commitments


There are no non-departmental operating commitments (2015: nil).

Capital commitments

Capital commitments are the aggregate amount of capital expenditure contracted for the

acquisition of property, plant and equipment that has not been paid or recognised as a

liability at balance date.

Actual

2015

$000

Actual

2016

$000

Capital commitments

4,383 Buildings 1,050

4,383 Total commitments 1,050


Annual Report

2015 - 201691


contingent liabilities and

contingent assets


Actual

2015

$000

Actual

2016

$000

Contingent liability

287 Members’ Superannuation 247

287 Total contingent liability 247

Contingent assets

The Service on behalf of the Crown has no contingent assets (2015:nil).

Quantifiable contingent liabilities


Annual Report

2015 - 201692

Notes to the non-departmental

financial statements

Note 1: Statement of accounting policies

Reporting entity

These non-departmental schedules and statements present financial information on public

funds managed by the Parliamentary Service on behalf of the Crown. Further details of the

department’s management of these Crown assets and liabilities are provided in the output

performance sections of this report. These non-department balances are consolidated into

the Financial Statements of the Government for the year ended 30 June 2016.

For a full understanding of the Crown’s financial position, results of operations and cash flows

for the year, refer to the Financial Statements of the Government.

Basis of preparation

The financial statements have been prepared on a historical cost basis, modified by the

revaluation of certain property, plant and equipment.

The non-departmental schedules and statements have been prepared in accordance with

the accounting policies of the Financial Statements of the Government, Treasury Instructions,

and Treasury Circulars.

Measurement and recognition rules applied in the preparation of these non-departmental

schedules and statements are consistent with New Zealand generally accepted accounting

practice (Tier 1 Public Sector Public Benefit Entity Accounting Standards) as appropriate for

public benefit entities.

Significant accounting policies

Foreign currency transactions

Foreign currency transactions are translated into New Zealand dollars using the exchange

rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting

from the settlement of such transactions and from the translation at year end exchange rates

of monetary assets and liabilities denominated in foreign currencies are recognised in the

schedules of non-departmental revenue and expenses.

Goods and Services Tax

All items in the financial statements, including appropriation statements, are stated exclusive

of Goods and Services Tax (GST), except for receivables and payables, which are stated on

Annual Report

2015 - 201693

a GST-inclusive basis. In accordance with Treasury Instructions, GST is returned on revenue

received on behalf of the Crown, where applicable. However, an input tax deduction is not

claimed on non-departmental expenditure. Instead, the amount of GST applicable to non-

departmental expenditure is recognised as a separate expense and eliminated against GST

revenue on consolidation of the Financial Statements of the Government.

Commitments

Commitments are future expenses and liabilities to be incurred on contracts that have

been entered into as at balance date. Information on non-cancellable capital and lease

commitments are reported in the statement of commitments. Cancellable capital

commitments that have penalty or exit costs explicit in the agreement on exercising that

option to cancel are reported in the statement of commitments at the lower of the remaining

contractual commitment and the value of those penalty or exit costs (i.e. the minimum future

payments).

Contingent liabilities

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

Critical accounting estimates

The estimates and assumptions that have a significant risk of causing a material

misstatement to the carrying amounts of assets and liabilities within the next financial year

are referred to below:

Budget figures

The 2016 budget figures are for the year ended 30 June 2016, which are consistent with

the best estimate financial information submitted to Treasury for the BEFU (Budget and

Economic Fiscal Update) for the year ended 2015/16. The Statement of Responsibility for the

BEFU forecast was signed on 8 April 2016 and based on PBE standards.

Debtors

Debtors are initially recorded at fair value, and are subsequently measured at amortised cost

using the effective method less any provision for impairment. A provision for impairment of

debtors is established when there is evidence that the Service will not be able to collect all

amounts due according to the original terms. The amount of the impairment is the difference

between the asset’s carrying amount and the present value of estimated future cash flows,

discounted using the original effective interest rate. The carrying amount of the asset is

reduced through the use of an allowance account, and the amount of the loss is recognised

in the schedule of non-departmental expenses. When a debtor is uncollectable, it is written

off against the allowance account for debtors. Overdue debtors that are renegotiated are

reclassified as current (i.e. not past due).

Annual Report

2015 - 201694

Significant financial difficulties of the debtor, probability that the debtor will enter into

bankruptcy, and default in payments, are considered indicators that the debtor is likely to be

impaired.

Employee entitlements

Short-term employee entitlements

Employee entitlements that are due to be settled within 12 months after the end of the

period in which the employee renders the related service are measured based on accrued

entitlements at current rates of pay. These include salaries and wages accrued up to

balance date, annual leave earned but not yet taken at balance date, long service leave and

retirement gratuities expected to be settled within 12 months, and sick leave.

A liability for sick leave is recognised to the extent that absences in the coming year are

expected to be greater than the sick leave entitlements earned in the coming year. The

amount is calculated based on the unused sick leave entitlement that can be carried forward

at balance date, to the extent that it will be used by staff to cover those future absences.

Long-term employee entitlements

Employee entitlements that are due to be settled beyond 12 months after the end of the

reporting period in which the employee renders the related service, such as long service

leave and retirement gratuities, are calculated on an actuarial basis. The calculations are

based on:

likely future entitlements accruing to staff, based on years of service, years to entitlement,

the likelihood that staff will reach the point of entitlement, and contractual entitlements

information; and

the present value of the estimated future cash flows.

Property, plant and equipment

Property, plant and equipment consists of the following classes of assets: Land, buildings,

furniture, plant and equipment, antiques and art, and library.

The initial cost of property, plant and equipment is the value of the consideration given

to acquire or create the asset and any directly attributable costs of bringing the asset to

working condition for its intended use.

All property, plant and equipment costing more than $2,000 are capitalised and recorded at

historical cost with the exception of Crown furniture where re-statement of costs has been

made to items of $5,000 or greater only.

Annual Report

2015 - 201695

Capital work in progress

Capital work in progress is not depreciated. The total cost of this work is transferred to the

relevant asset category on its completion.

Depreciation

Depreciation of property, plant and equipment is provided on a straight-line basis to allocate

the cost of assets, less any estimated residual value, over their useful lives.

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

assets are:

Furniture 15 years

Antiques and collection Not depreciated

Buildings 15 - 100 years

Plant and equipment 3 - 10 years

Land Not depreciated

Library collection - reference 7 - 10 years

Library collection - rare and valuable Not depreciated

Valuation

Revaluations are carried out for a number of classes of property, plant and equipment to

reflect the service potential or economic benefit obtained through control of the asset.

Revaluation is based on the fair value of the asset with changes reported by class of asset.

Classes of property, plant and equipment that are revalued are revalued at least every five

years or whenever the carrying amount differs materially to fair value. Unrealised gains and

losses arising from changes in the value of property, plant and equipment are recognised as

at balance date and are debited or credited to the Revaluation Reserve.

Accumulated depreciation at revaluation date is eliminated against the gross carrying

amount so that the carrying amount after revaluation equals the revalued amount.

Land and buildings are valued on a three-yearly basis by independent registered valuers to

ensure that the carrying amounts do not differ materially from the assets’ fair values. Land

is valued at current market value, with reference to its highest and best use, subject to its

current zoning and heritage designation. Buildings are valued at depreciated replacement

cost less allowance for physical deterioration, optimisation and relevant surplus capacity. The

most recent valuation of land and buildings was undertaken as at 30 June 2016.

The carrying values of revalued assets are internally assessed by the Service on an annual

basis to ensure that they do not differ materially from the assets’ fair values. If there is

a material difference, then the off-cycle asset classes are revalued. Additions between

revaluations are recorded at cost.

Annual Report

2015 - 201696

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

basis.

The antique and art collections are valued at fair market value on a three-yearly basis by

independent registered valuers. The last valuation was undertaken as at 30 June 2014.

The Library collections are valued at fair market value on a three yearly basis by independent

registered valuers. The last valuation was completed as at 12 February 2016.

Additions

In most instances, an item of property, plant and equipment is initially recorded at its cost.

Where an asset is acquired through a non-exchange transaction, it is recognised at its fair

value as at the date of acquisition.

Disposals

Gains and losses on disposals are determined by comparing the proceeds with the carrying

amount of the asset. Gains and losses on disposal are included in the schedule of revenue

and expenses. When revalued assets are sold, the amounts included in asset revaluation

reserves in respect of those assets are transferred to the schedule of non-Departmental

liabilities and revaluation reserve.

Impairment of property, plant, and equipment

Property, plant and equipment that have a finite useful life are reviewed for impairment

whenever events or changes in circumstances indicate that the carrying amount may not be

recoverable. An impairment loss is recognised for the amount by which the asset’s carrying

amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s

fair value less costs to sell and its value in use.

Value in use is the depreciated replacement cost for an asset where the future economic

benefits or service potential of the asset are not primarily dependent on the asset’s ability to

generate net cash inflows and where the Service would, if deprived of the asset, replace its

remaining future economic benefits or service potential.

If an asset’s carrying amount exceeds its recoverable amount, the asset is impaired and

the carrying amount is written down to the recoverable amount. For revalued assets, the

impairment loss is recognised against the revaluation reserve for that class of asset. Where

that results in a debit balance in the revaluation reserve, the balance is recognised in the

surplus or deficit.

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

surplus or deficit.

The reversal of an impairment loss on a revalued asset is credited to the revaluation reserve.

However, to the extent that an impairment loss for that class of asset was previously

Annual Report

2015 - 201697

recognised in the surplus or deficit, a reversal of the impairment loss is also recognised in the

surplus or deficit.

For assets not carried at a revalued amount, the reversal of an impairment loss is recognised

in the surplus or deficit.

Annual Report

2015 - 201698

Note 2: Financial instruments2A – Financial instrument categories

The carrying amounts of financial assets and liabilities in each of the financial instrument

categories are as follows:

Actual

2015

$000

Actual

2016

$000

Financial assets measured at amortised costs

Loans and receivables

16,696 Cash and cash equivalents 11,850

9 Debtors 14

16,705 Total loans and receivables 11,864

Financial liabilities measured at amortised costs

2,744 Creditors and other payables 3,151

The Crown does not have any gains or losses on its financial instruments and no impairments

have been recognised to date. The fair value of the financial instruments is deemed not

materially different from valuation at amortised cost. As a result, the carrying value of the

instruments is at fair value.

2B – Financial instrument risks

The Service is party to financial instrument arrangements as part of its everyday operations.

These include instruments such as bank balances, accounts receivable and accounts payable.

The fair value of the Service’s financial instruments is the same as the carrying value.

The Service does not have any gains or losses on its financial instruments and no

impairments have been recognised to date. All financial assets and liabilities are non-

derivative in form and function and are neither available for sale nor held to maturity. The

fair value of the financial instruments is deemed not materially different from valuation at

amortised cost. As a result the carrying value of the instruments is at fair value.

Credit risk

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

the Service to incur a loss. In the normal course of its business, the Service’s credit risk

arises from debtors. The maximum exposure from trade debtors is the value of the non-

Annual Report

2015 - 201699

Government debtors, i.e. $nil (2015: $nil). Default is considered by management to be

unlikely and the probable exposure has been determined as negligible. There were no

changes in receivables or payables during the year that can be attributed to credit risk.

The Service is permitted to deposit funds only with Westpac, a registered bank. The Service

is not required to provide any collateral or security to support financial instruments with

financial institutions that it deals with, as this entity has a high credit ratings. For its other

financial instruments, the Service does not have significant concentrations of credit risk.

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

Credit facilities

The Service does not have bank overdraft facilities as at 30 June 2016.

Currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument

will fluctuate because of changes in foreign exchange rates. The Service has no significant

exposure to currency rate risk on its financial instruments.

Interest rate risk

Interest rate risk is the risk that the fair value of a financial instrument will fluctuate, or the

cash flows from a financial instrument will fluctuate, due to changes in market interest rates.

The Service has no interest bearing financial instruments and, accordingly, has no exposure

to interest rate risk.

Liquidity risk

Liquidity risk is the risk that the Service will encounter difficulty raising funds to meet

commitments as they fall due. In meeting its liquidity requirements, the Service closely

monitors its forecast cash requirements with expected cash drawdowns from the NZDMO.

The Service maintains a target level of available cash to meet liquidity requirements. The

Service considers that it does not have a significant liquidity risk as it ensures it has adequate

working capital coverage at all times.

Exposure to risk

The Service is not aware of any exposure to risk regarding financial instruments that would

have a significant impact on operations.

Annual Report

2015 - 2016100

Note 3: Debtors, Other Receivables and Prepayments

Actual

2015

$000

Actual

2016

$000

Debtors under exchange transactions

9 Debtors 14

172 Prepayments 91

181 Total debtors - exchange 105

Annual Report

2015 - 2016101

Note 4: Property, plant and equipmentCost or valuation Land Buildings Furniture Plant &

equipment

Antiques

and art

collection

Library

collection

Work in

Progress

Total

all units $000’s

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

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

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

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

Adjustments - 2 - - - - - 2

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

Write Off/Impairment - - - - - - - -

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

Balance at 1 July 2015 100,000 323,189 13,610 2,419 12,322 29,274 3,921 484,735

Additions - other - (27) 2 - - - 8,494 8,469

Additions - Artworks & Library - - - - 17 188 - 205

Transfers from work in progress - 835 31 485 - - (1,351) -

Adjustments - - - - - - - -

Revaluation increase/(decrease) - 16,501 - - - (22,519) - (6,018)

Disposals - - - - - (2,198) - (2,198)


Balance at 30 June 2016 100,000 340,498 13,643 2,904 12,339 4,745 11,064 485,193

Cost or valuation Land Buildings Furniture Plant &

equipment

Antiques

and art

collection

Library

collection

Work in

Progress

Total

all units $000’s

Accumulated depreciation and impairment losses

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

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

Eliminated on revaluation - 2 - - - - - 2

Eliminate on disposal - - 20 - - 180 - 200


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

Balance at 1 July 2015 - (21,845) (13,482) (268) - (15,934) - (51,529)

Depreciation expense - (11,047) (11) (249) - (608) - (11,915)

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

Eliminate on revaluation - 32,894 - - - 14,344 - 47,238

Eliminate on disposal - - - - - 2,198 - 2,198


Balance at 30 June 2016 - - (13,493) (517) - - - (14,010)

Carrying amounts

At 30 June 2014 100,000 310,256 29 1,817 12,307 14,228 1,013 439,650

At 30 June2015 100,000 301,344 128 2,151 12,322 13,340 3,921 433,206

At 30 June 2016 100,000 340,498 150 2,387 12,339 4,745 11,064 471,183

There were disposals of $7.291m of Library collections in 2014, $0.570m in 2015 and a further $2.198m in2016 as the result of the Library collections review which involved identifying material that was no longer useful. The review began in 2014 and was completed in 2016.

Annual Report

2015 - 2016102

Note 5: Creditors

Actual

2015

$000

Actual

2016

$000

Creditors under exchange transactions

1,815 Creditors 1,248

929 Accrued expenses 1,903

2,744 Total creditors - exchange 3,151

Note 6: Revalued assets

Revalued assets – land and buildings

Land and buildings were valued as at 30 June 2016 by registered valuer, Darroch Limited.

The asset valuation was completed in accordance with:

Public Benefit Entity International Public Sector Accounting Standard 17: Property, Plant and

Equipment (PBE IPSAS 17)

International Valuation Standards (IVS) and Property Institute of New Zealand (PINZ) standard

The land has been assessed at market value at its highest and best use, subject to its current

zoning and heritage designation. In assessing the market value, land sales within the general

area have been considered as a starting point. The parliamentary site comprises a large land

area, and hence adjustments have been made for location and size.

The basis for the fair value assessment for the buildings is depreciated replacement cost

less allowance for physical deterioration, optimisation and relevant surplus capacity, as New

Zealand International Accounting Standard (NZIAS) 16 requires this for specialised assets. The

buildings are considered specialised assets due to their size and scale and the absence of any

directly comparable sales of similar properties as going concerns.

Antique and art collections

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

Limited.

Annual Report

2015 - 2016103

Library

Additions to the Library collections during the year ending 30 June 2016 were recorded at

cost.

During the year, a 3 year review of the Library’s collections was completed. This review

identified a large amount of material that was no longer deemed useful in providing

information, research, and reference services to members and Parliamentary staff. This

resulted in the relevant revaluation reserves completely written down. This material is

currently being offered to suitable locations including the National Library and other

libraries. The collection remaining in Crown ownership was valued by an independent expert

valuer, Webb’s, as at 12 February 2016.

Note 7: Assets held for sale and impairment The Crown does not have any items of property, plant and equipment classified as held for

sale or impairment.

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

Note 8: Related party transactions

Related party disclosures have not been made for transactions with related parties that are

within a normal supplier or client/recipient relationship on terms and condition no more or

less favourable than those that it is reasonable to expect the Service would have adopted in

dealing with the party at arm’s length in the same circumstances. Further, transactions with

other government agencies (for example, Government departments and Crown entities)

are not disclosed as related party transactions when they are consistent with the normal

operating arrangements between government agencies and undertaken on the normal

terms and conditions for such transactions.

Note 9: Post-balance date events

There we no significant events after balance date (2015: nil).

Annual Report

2015 - 2016104

Statements of expenses and capital expenditure

Statement of non-departmental expenses against appropriationsFor the year ended 30 June 2016

Unaudited

Actual

2015

$000

Actual

2016

$000

Main

Estimates

2016

$000

Supp

Estimates

2016

$000

Appropriation for Non-Departmental other expenses to be incurred by the Crown*

11,792 Depreciation expense on parliamentary complex 11,915 14,000 13,500

19,884Members of the House of Representatives’ salaries and

allowances19,640 22,000 22,000

2,873 Members’ communications 3,307 2,828 3,328

- Travel of members and others - - -

2,586Accommodation of members and travel of members’

families2,802 4,000 2,900

1,118 Travel of former MPs 1,055 1,000 1,300

4,165 Travel of members and others 4,485 3,750 4,550

- Party and member support - ACT - - -

423 Party and member support - Green - - -

12 Party and member support - Independent - - -

1,223 Party and member support - Labour - - -

51 Party and member support - Mana - - -

106 Party and member support - Maori - - -

1,583 Party and member support - National - - -

233 Party and member support - NZ First - - -

43 Party and member support - United Future - - -

481 Transitional costs - - -

46,573 43,204 47,578 47,578

*These appropriations are exempt from end-of-year performance information under s15D(2)(b)(ii) of the Public Finance Act 1989

Annual Report

2015 - 2016105

Multi Year Appropriations - for

other expenses to be incurred by

the CrownThe Service has a multi-year appropriation (MYA) for other expenses to be incurred

by the Crown for parties to support their parliamentary operations during the 51st

Parliament including their Leaders’ offices, support staff, research operations, Whips

office, communications, administrative and support services to members, and, during the

immediate post-election period, qualifying electoral candidates and former members, as

allowed under directions given by the Speaker. This appropriation commenced on 1 October

2014 and expires on 30 September 2017.

Unaudited

Actual

2015

$000

Actual

2016

$000

Main

Estimates

2016

$000

Supp

Estimates

2016

$000

Multi Year Appropriation for other expenses to be incurred by the Crown*

81 Additional support for members 65 300 444

153 Party and member support - ACT 333 322 375

2,278 Party and member support - Green 3,852 3,793 4,064

7,347 Party and member support - Labour 11,966 11,553 12,071

414 Party and member support - Maori 680 675 698

10,270 Party and member support - National 16,434 16,936 17,316

1,416 Party and member support - NZ First 3,537 3,004 3,691

135 Party and member support - United Future 211 322 280

22,094 Sub-total 37,078 36,905 38,939

68,667 Total 80,282 84,483 86,517

* These appropriations have an exemption from year end performance reporting under s15D(2)9b)(ii) of the Public Finance Act 1989.

Annual Report

2015 - 2016106

Details of multi-year

appropriations - for other expenses

incurred by the Crown

2016

Additional

Support to

members

$000

Party and

member

support

ACT

$000

Party and

member

support

Green

$000

Party and

member

support

Labour

$000

Party and

member

support

Maori

$000

Party and

member

support

National

$000

Party and

member

support

NZ First

$000

Party and

member

support

United

Future

$000

Appropriations

Original appropriations 900 1,349 11,655 34,984 3,300 51,097 6,563 1,025

2015/16 adjustments - - 8 - - (901) 885 -

Cumulative adjustments

from previous year(s)- (365) (49) 377 (1,237) 830 2,626 (41)

Total adjusted

appropriations as at 30

June 2016

900 984 11,614 35,361 2,063 51,026 10,074 984

Expenditure

Cumulative expenditure

from previous year(s)81 153 2,278 7,347 414 10,270 1,416 135

2015/16 actual expenditure* 65 333 3,852 11,966 680 16,434 3,537 211

Cumulative actual

expenditure as at 30 June

2016

146 486 6,130 19,313 1,094 26,704 4,953 346

Appropriations remaining

as at 30 June 2016754 498 5,484 16,048 969 24,322 5,121 638

*Approved appropriations

(Supplementary Estimates

15/16)

444 375 4,064 12,071 698 17,316 3,691 280

Annual Report

2015 - 2016107

2015

Additional

Support to

members

$000

Party and

member

support

ACT

$000

Party and

member

support

Green

$000

Party and

member

support

Labour

$000

Party and

member

support

Maori

$000

Party and

member

support

National

$000

Party and

member

support

NZ First

$000

Party and

member

support

United

Future

$000

Appropriations

Original appropriations 900 1,349 11,655 34,984 3,300 51,097 6,563 1,025

2014/15 adjustments - (365) (49) 377 (1,237) 830 2,626 (41)

Cumulative adjustments

from previous year(s)- - - - - - - -

Total adjusted

appropriations as at 30

June 2015

900 984 11,606 35,361 2,063 51,927 9,189 984

Expenditure

Cumulative expenditure

from previous year(s)- - - - - - - -

2014/15 actual expenditure 81 153 2,278 7,347 414 10,270 1,416 135

Cumulative actual

expenditure as at 30 June

2015

81 153 2,278 7,347 414 10,270 1,416 135

Appropriations remaining

as at 30 June 2015819 831 9,328 28,014 1,649 41,657 7,773 849

Note: The term of the multi year appropriation is for the term of the Parliament from 1 October 2014 to 30 September 2017. These appropriations are exempt from end-of-year performance information under s15D(2)(b)(ii) of the Public Finance Act 1989.

Annual Report

2015 - 2016108

Details of multi-year

appropriations

Purchase of development of capital assets by the

Crown

The Service has a multi-year appropriation for other expenses to be incurred by the Crown

for minor capital works within the Parliamentary complex to carry out essential maintenance

and minor capital improvements. This appropriation commenced on 1 July 2012 and expired

on 30 June 2016.

Unaudited

Actual

2015

$000

Actual

2016

$000

Main

Estimates

2016

$000

Supp

Estimates

2016

$000

Purchase or development of capital assets by the Crown*

Crown Asset Management -

Parliamentary complex - minor capital works

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

8,567 Cumulative adjustments from previous years 8,567 8,567 8,567

- Adjusted appropriation approved 2015/16 (435) - (435)

24,567 Total adjusted appropriation 24,132 24,567 24,132

8,258 Cumulative actual expenditure at beginning of year 13,820 14,946 14,339

5,562 This year’s actual expenditure 8,469 9,621 9,793

13,820 Cumulative actual expenditure as at 30 June 2016 22,289 24,567 24,132

10,747 Appropriation remaining as at 30 June 2016 1,843 - -

* This appropriation has an exemption from year end performance reporting under s15D(2)(b)(ii) of the Public Finance Act 1989.

Annual Report

2015 - 2016109



incurred without appropriation

or other authority or in excess of

an existing appropriation or other

authorityFor the year ended 30 June 2016

There was no non-departmental unappropriated expenditure and capital expenditure in

2015/16 (2014/15: $117,623).

Annual Report

2015 - 2016110

Schedule of expenditure on travel

entitlements of former members

and their spouse or partner

Section 42 of the Members of Parliament (Remuneration and Services) Act 2013 requires the

Crown to report on expenses for travel entitlements of former members and their spouse or

partner. The details required by this section are shown in the table below. This information

includes travel which commenced prior to 30 June 2016 for which reimbursement requests

were received by 19 August 2016. Claims received after this date will be disclosed in the

2016/17 Annual Report.

Name of former member

Total expenses

incurred for

international air travel

$

Total expenses

incurred for

domestic air travel

$

Total expenses

incurred for rail,

road and ferry

travel

$

Total

$

Hon James Anderton - 1,426 - 1,426

Philip Ardern 3,177 - - 3,177

Hon Margaret Austin 3,848 347 94 4,288

Hon John Banks - 2,704 - 2,704

Hon Richard Barker 1,839 4,487 193 6,519

Timothy Barnett 538 878 106 1,522

Hon Dr Michael Bassett 9,402 1,142 - 10,544

Rt Hon Sir William Birch - 1,645 - 1,645

Rt Hon James Bolger 10,454 - - 10,454

Hon Maxwell Bradford 6,197 1,490 452 8,139

Hon Phillida Bunkle 3,890 946 - 4,836

Hon Philip Burdon 1,402 4,996 - 6,398

Hon Sir Thomas Burke 10,454 3,370 2,323 16,147

Hon Richard Burton 4,028 473 - 4,501

Hon Christopher Carter 8,711 402 - 9,113

Hon John Carter 1,229 3,011 91 4,331

Hon David Caygill - 545 - 545

Hon Warren Cooper 8,304 461 - 8,765

Rt Hon Wyatt Creech 9,544 - - 9,544

Hon Dr Sir Michael Cullen 6,990 - - 6,990

Hon Sir Roger Douglas 2,550 609 - 3,159

Hon Harry Duynhoven 7,044 1,865 - 8,909

Rt Hon Paul East 7,104 277 - 7,381

Jeanette Fitzsimons - 972 - 972

Annual Report

2015 - 2016111


Total expenses

incurred for


$

Total expenses

incurred for

domestic air travel

$

Total expenses

incurred for rail,

road and ferry

travel

$

Total

$

Hon Anthony Friedlander 1,389 1,053 191 2,633

Richard Gerard 758 324 - 1,082

Hon Peter Gresham 519 309 - 828

Hon Marie Hasler - 448 - 448

Hon George Hawkins 4,229 - - 4,229

Hon Dame Margaret (Ann)

Hercus6,557 1,445 - 8,002

Hon Peter Hodgson - 5,902 - 5,902

Dail Jones 1,961 - - 1,961

Graham Kelly 6,574 1,937 - 8,511

Hon Sir Douglas Kidd 5,774 1,407 - 7,180

Garry Knapp 1,025 - - 1,025

Warren Kyd 1,139 1,021 - 2,159

Hon Graeme Lee 8,469 800 - 9,269

Hon Sandra Lee-Vercoe - 703 - 703

Hon Murray Luxton 10,454 3,041 - 13,495

Brian MacDonell 3,236 - - 3,236

Hon Peter McCardle 321 - - 321

Rt Hon Sir Donald

McKinnon- 568 - 568

Hon Sir James McLay 4,978 1,206 - 6,184

Ian McLean - 878 - 878

Hon Maurice McTigue 4,748 - - 4,748

Hon Anthony G Malcolm 1,228 - - 1,228

Hon Cedric Marshall - 1,030 - 1,030

Hon Denis Marshall - 2,703 - 2,703

Hon Dr Clive Matthewson 1,018 788 - 1,806

Hon Roger Maxwell 10,352 1,732 - 12,083

Alan Meurant 5,425 244 - 5,668

Brian Neeson 3,068 2,205 - 5,273

Dr Muriel Newman - 379 - 379

Richard Northey 2,682 107 - 2,789

Hon Katherine O’Regan - 435 - 435

Mark Peck - 2,962 - 2,962

Marjorie Pettis 5,166 229 - 5,395

Hon Richard Prebble 994 663 - 1,657

Hon Derek Quigley 5,281 - - 5,281

Marilyn Quigley 6,969 1,327 - 8,296

Ian Revell 1,896 93 - 1,989

Harold Robertson 2,417 1,091 - 3,508

Annual Report

2015 - 2016112


Total expenses

incurred for


$

Total expenses

incurred for

domestic air travel

$

Total expenses

incurred for rail,

road and ferry

travel

$

Total

$

Hon Matthew Robson 6,969 288 - 7,257

Hon Stanley Rodger 817 1,073 - 1,890

Hon Anthony Ryall - 1,502 - 1,502

Hon Dover Samuels 997 - - 997

Hon Dr Ian Shearer - 736 - 736

Rt Hon Dame Jennifer

Shipley10,454 - - 10,454

Hon Kenneth Shirley - 542 154 696

Rt Hon Dr Sir Alexander

(Lockwood) Smith10,448 436 - 10,884

Hon Robert Storey 7,991 - - 7,991

Hon James Sutton - 674 - 674

Patricia Tennet 571 669 - 1,240

John Terris 1,759 671 - 2,430

Rt Hon Robert Tizard

(deceased 2016)- 491 - 491

Hon Judith Tizard - 3,485 - 3,485

Dr Marilyn Waring 424 - - 424

Hon Koro Wetere 7,838 - - 7,838

Hon Frances Wilde 4,650 - - 4,650

Hon Pansy Wong - 132 - 132

2014/15 travel

reimbursed during

2015/16

Hon Maxwell Bradford - - 86 86

Hon Derek Quigley 1,549 - - 1,549

Subtotal of former

members269,793 79,774 3,690 353,257

Name of spouse/

partner/surviving

spouse of former

member

Name of former

member

Total expenses

incurred for

international air

travel

$

Total expenses

incurred for

domestic air

travel

$

Total expenses

incurred for

rail, road and

ferry travel

$

Total

$

Doreen Anderson Robert Anderson 403 - - 403

Carole Anderton Hon James Anderton - 2,566 - 2,566

Catherine Ardern Philip Ardern 3,177 - - 3,177

Lady Sandra Arthur Sir Basil Arthur 2,842 - - 2,842

Barbara Bailey Hon Ronald Bailey 10,454 308 - 10,762

Amanda Banks Hon John Banks 3,153 1,852 - 5,005

Judith BassettHon Dr Michael

Bassett9,402 591 - 9,993

Annual Report

2015 - 2016113

Name of spouse/

partner/surviving

spouse of former

member

Name of former

member

Total expenses

incurred for

international air

travel

$

Total expenses

incurred for

domestic air

travel

$

Total expenses

incurred for

rail, road and

ferry travel

$

Total

$

Gail BirtHon Dr Clive

Mathewson1,018 788 - 1,806

Joan Bolger Rt Hon James Bolger 10,454 - - 10,454

Rosemary Bradford Hon Maxwell Bradford 6,197 1,102 165 7,464

Lynley Brown Peter Brown 1,190 - - 1,190

Rosalind Burdon Hon Philip Burdon 9,999 2,273 - 12,272

Lady Fahimeh Rastar

BurkeHon Sir Thomas Burke 7,954 311 - 8,265

Carol Burton Hon Richard Burton 4,824 401 - 5,225

Leoni Carter Hon John Carter 1,328 3,374 91 4,793

Lowson CollinsHon Dr Sir Michael

Cullen6,990 - - 6,990

Noeline Colman Rt Hon Fraser Colman 7,911 4,080 120 12,111

Diane Comber Ken Comber - 261 - 261

Lorraine Cooper Hon Warren Cooper 8,304 461 - 8,765

Michael CoxHon Katherine

O’Regan- 435 - 435

Diana Creech Rt Hon Wyatt Creech 8,428 347 - 8,775

Linda Donnelly Brian Donnelly 1,444 - - 1,444

Lady Glennis

DouglasHon Sir Roger Douglas 6,866 365 - 7,231

Margaret

DuynhovenHon Harry Duynhoven 1,089 1,597 - 2,686

Marilyn East Rt Hon Paul East 6,620 554 - 7,174

Judith ElworthyHon Jonathan

Elworthy541 917 - 1,458

Harry Parke Jeanette Fitzsimons - 230 - 230

Pamela FriedlanderHon Anthony

Friedlander1,389 389 191 1,969

John Galvin Patricia Tennet 571 459 - 1,030

Mary Gerard Richard Gerard 758 177 - 935

Margot Gresham Hon Peter Gresham 519 309 - 828

Janice Hawkins Hon George Hawkins 4,229 - - 4,229

Katherine Hawley John Terris 1,759 188 - 1,947

John HercusHon Dame Margaret

(Ann) Hercus6,557 1,235 - 7,792

John Hunt Marilyn Quigley 3,936 1,648 - 5,584

Elaine Jones Dail Jones 1,961 929 - 2,890

Peter KaiserHon Christopher

Carter8,711 372 - 9,083

Janette Kelly Graham Kelly - 1,929 - 1,929

Lady Jane Kidd Hon Sir Douglas Kidd 9,899 3,960 - 13,859

Annual Report

2015 - 2016114

Name of spouse/

partner/surviving

spouse of former

member

Name of former

member

Total expenses

incurred for

international air

travel

$

Total expenses

incurred for

domestic air

travel

$

Total expenses

incurred for

rail, road and

ferry travel

$

Total

$

Dianne Kyd Warren Kyd 1,139 1,021 - 2,160

Daphne Lee Hon Graeme Lee 8,469 800 - 9,269

John Lepper Hon Phillida Bunkle - 377 - 377

Joan MacDonell Brian MacDonell 3,236 - - 3,236

Elizabeth McAffer Hon Derek Quigley 733 - - 733

Anna McCardle Hon Peter McCardle 321 - - 321

Nan McKenzie Hon Noel Scott - 737 - 737

Lady Marcy McLay Hon Sir James McLay 4,034 1,216 - 5,250

Barbara McTigue Hon Maurice McTigue 3,315 - - 3,315

Ramon Maniapoto Timothy Barnett 683 - - 683

Anne Marris Hon Peter Hodgson 3,313 5,729 - 9,042

Barbara Marshall Hon Cedric Marshall - 808 - 808

Tui Maxwell Hon Roger Maxwell 10,352 950 52 11,354

Vanessa Neeson Brian Neeson 3,211 2,656 - 5,867

Robyn Northey Richard Northey 2,682 107 - 2,789

Margaret Peck Mark Peck - 1,336 - 1,336

Warren Pettis Marjorie Pettis 5,166 229 - 5,395

Gabriele Pfaender Dr Bruce Gregory - 182 146 328

Nellie Rata Matiu Rata - 582 - 582

Susan Goldfinch

RevellIan Revell 2,141 162 - 2,303

Grace Robertson Harold Robertson 1,250 1,195 - 2,445

Petronella

TownshendHon Matthew Robson 4,790 - - 4,790

Anne Rodger Hon Stanley Rodger 817 1,091 - 1,908

Kara Ryall Hon Anthony Ryall - 2,060 - 2,060

Mary Scholtens Hon Murray Luxton 10,454 1,177 - 11,631

Burton ShipleyRt Hon Dame Jennifer

Shipley10,454 - - 10,454

Nicola Shirlaw Rodney Donald 1,931 242 - 2,173

Patrick Shields Margaret Shields 6,969 - - 6,969

Jenny Shirley Hon Kenneth Shirley 923 1,475 104 2,502

Lady Alexandra

Smith

Rt Hon Sir Alexander

(Lockwood) Smith10,454 - - 10,454

Lorraine Storey Hon Robert Storey 7,991 - - 7,991

Dr Denis SullivanHon Tini (Whetu)

Tirikatene Sullivan599 - - 599

Ngahuia Wade Hon Richard Prebble 6,631 771 - 7,402

Susannah Walker Hon Herbert Walker 693 349 - 1,042

Annual Report

2015 - 2016115

Name of spouse/

partner/surviving

spouse of former

member

Name of former

member

Total expenses

incurred for

international air

travel

$

Total expenses

incurred for

domestic air

travel

$

Total expenses

incurred for

rail, road and

ferry travel

$

Total

$

Helen Wellington Meryyn Wellington - 430 - 430

Nedracita Wetere Hon Koro Wetere 7,838 - - 7,838

Carol Woollaston Philip Woollaston - 76 - 76

Sammy Wong Hon Pansy Wong - 462 - 462

2014/15 travel

reimbursed during

2015/16

Diane Comber Ken Comber - 640 - 640

Lady Clare DeloreRt Hon Sir Donald

McKinnon- 936 - 936

Elizabeth McAffer Hon Derek Quigley 3,853 - - 3,853

Lady Alexandra

Smith

Rt Hon Dr Sir

Alexander (Lockwood)

Smith

1,211 - - 1,211

Subtotal of spouse/

partner of former

members

286,528 62,202 870 349,600

Summary of totals

Subtotal of former members 269,793 79,774 3,690 353,257

Subtotal of spouse/partner of former

members

286,528 62,202 870 349,600

Fringe benefit taxes 352,637

Total 1,055,494

Roadmap to Vision 2020

OUR MISSION

THE DESIRED OUTCOMES

2014/15

Year one

The focus is on building

our people capability

and establishing a joint

sector outcome with

The Office of the Clerk.

Year of the people

We develop our people

and support members

with clear and consistent

business processes.

2015/16

Year of the member

We work consistently

across the Service to

effectively meet the

needs of members.

2016/17

...silos, broken communication,

multiple hand-offs

The Service

provides the tools

to work securely

from wherever and

whenever people

need to – anytime,

anywhere.

Staff are valued

and passionate

about providing

great service

to support

Parliament.

As an organisation

the Service

understands its

customers’ needs.

From...

To...

Year of the environment

Our workplace is

fit-for-purpose.

We deliver consistently

high quality services

to members.

2018/19

We take an enduring look into the future

2019/20

We are a modern organisation that values tradition and

is recognised for excellence and innovation

Realising the

Vision 2020

2020/21

...cross functional roles, high collaboration,

results oriented

The workplace

is flexible and

modern, safe

and secure.

The Service’s

customers trust

it to provide high

quality services.

The Office of

the Clerk and

the Service

continue to

deliver on

outcomes for

Parliament.

Year of the general election

Members are

smoothly transitioned

between Parliaments.

The Speaker’s Directions

are clear and easy

to implement.

2017/18

Annual Report 2015 - 2016 · Annual Report 2015 - 2016 7 people to grow in their roles and to deliver consistent and timely services to members of Parliament. Maintaining the fabric

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