Notes to the non-departmental financial statements

Note 1: Statement of Non-Departmental Accounting Policies

These non-departmental statements and schedules record the expenses, revenue and receipts, assets and liabilities that Te Puni Kōkiri manages on behalf of the Crown.

The Non-Departmental balances are consolidated into the Financial Statements of the Government and therefore readers of these statements and schedules should also refer to the Financial Statements of the Government for 2010/11.

Basis of Preparation
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 as appropriate for public benefit entities.

There have been no changes in accounting policies during the financial year.

Statement of Compliance
These financial statements have been prepared in accordance with New Zealand generally accepted accounting practice. They comply with NZ IFRS and other applicable Financial Reporting Standards, as appropriate for public benefit entities.

Measurement System
Measurement and recognition rules applied in the preparation of the Non-Departmental statements and schedules are consistent with generally accepted accounting practice and the Financial Statements of the Government’s accounting policies. The financial statements have been prepared on an historical cost basis

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

Accounting Policies
The following particular accounting policies that materially affect the measurement of financial results and financial position have been applied

Budget Figures
The budget figures are those presented in the 2009 Main Estimates as amended by the 2009/10 Supplementary Estimates and any transfer made by Order in Council under section 26A of the Public Finance Act 1989.

Revenue Te Puni Kōkiri derives revenue through the provision of outputs to the Crown and for services to third parties. Revenue is measured at the fair value of consideration received.

Revenue from supply of services is recognised at balance date on a straight line basis over the specified period for the services, unless an alternative method better represents the stage of completion of transaction.

Goods and Services Tax (GST) The Statements of Non-Departmental Expenditure and Appropriations are exclusive of GST. The Statement of Financial Position is exclusive of GST, except for Creditors and Payables, and Debtors and Receivables, which are GST inclusive.

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 and other Payables or Debtors and other Receivables (as appropriate).

Commitments Future expenses and liabilities to be incurred on contracts that have been entered into at balance date are disclosed as commitments to the extent that there are equally unperformed obligations.

Note 2: Revaluation of Crown Land

Te Puni Kōkiri holds a number of Crown land blocks which are intended for disposal. All the land blocks are assessed for material movement in carrying value each year. The land blocks held for sale are revalued annually if there is a change in its disposal status during the year. For land blocks held for sale where there has not been a change, independent valuations are done regularly (3 years). All other land blocks are held at cost. For the 2008/09 financial year, Independent valuations were done by Veitch Morison Valuers Ltd, Garton and Associates, E.I. Clissold and QV Valuations between 26 May 2009 and 8 July 2009.

Note 3: Explanation for Significant Budget Changes

Refer to “The Supplementary Estimates of Appropriations for the year ending 30 June 2011” for an explanation of significant budget changes between the 2010 Main Estimates and 2010/11 Supplementary Estimates for Vote Māori Affairs (B.7 - Pages 614 to 614).

The major changes included:

New appropriations

• Te Waka ($0.822m) - to support the construction of a large transportable even marquee, in the shape of a traditional waka to be located on the Auckland waterfront.
• Taumarunui Lease Compensation ($0.500m) - a one-off ex-gratia payment to the Karanga Te Kere Whānau Trust to address their historical rental losses and omission from the Māori Reserved Land Amendment Act 1997 with respect to reserves in Taumarunui.

Additional appropriations

• Strengthening and Promoting Maori Tourism ($4.500m over three years) - new funding for an action plan that will focus on raising the quality and consistency of Māori tourism products, improving the business capability and performance of Māori tourism operators and better promoting Māori tourism. A total of $1.0m from this appropriation has been transferred to 2013/14.
• Iwi Housing Support ($0.130m) - new funding for part implementation of the Ratana Housing Strategy.

Note 4: Explanation for significant variances

The following notes explain the significant variances between Main Estimates and Actual.