Notes to the Departmental Financial Statements and Non-departmental Schedules

for the year ended 30 June 2021

1. Statement Of Accounting Policies

Reporting Entity

The Public Service Commission (the Commission) is a New Zealand government department as defined by section 5 of the Public Service Act 2020 and is domiciled and operates in New Zealand. The relevant legislation governing the Commission’s operations includes the Public Finance Act 1989 (PFA), and the Public Service Act 2020.

The Social Wellbeing Agency (SWA) is a departmental agency as defined by section 2 of the Public Finance Act 1989, which is hosted within the Commission, unless explicitly stated, references to the Commission cover both the Commission and SWA.

In addition, the Commission has reported separately, in the Non-departmental Schedules, financial information on public funds managed by the Commission on behalf of the Crown.

The primary objective of the Commission is to provide services to the public rather than making a financial return. Accordingly, the Commission is designated as a Public Benefit Entity (PBE) for financial reporting purposes.

The Financial Statements of the Commission are for the year ended 30 June 2021. The Forecast Financial Statements are for the year ending 30 June 2022. These Financial Statements were authorised for issue by the Chief Executive on 30 September 2021.

The financial statements of the Commission for the year ended 30 June 2021 are consolidated financial statements including both the Commission and SWA. They are shown as Group in this annual report.

The Departmental Financial Statements and the financial information reported in the Non-departmental Schedules are consolidated into the Financial Statements of the Government and, therefore, readers of these schedules should also refer to the Financial Statements of the Government for the year ended 30 June 2021.

Statement of compliance

The Departmental Financial Statements, non-departmental schedules and unaudited Departmental Forecast Financial Statements of the Commission have been prepared in accordance with the requirements of the Public Finance Act 1989, which includes the requirement to comply with New Zealand Generally Accepted Accounting Practices (NZ GAAP), Treasury Instructions and Treasury Circulars. These Financial Statements comply with PBE accounting standards as appropriate for Tier 1 entities. These Financial Statements have been prepared in accordance with Tier 1 NZ PBE accounting standards. Measurement and recognition rules applied in the preparation of the Non-departmental Supplementary Financial Schedules are consistent with NZ GAAP and Crown accounting policies and are detailed in the Financial Statements of the Government.

Basis of preparation

The Departmental Financial Statements and Non-departmental Schedules have been prepared on a going concern basis, and the accounting policies have been applied consistently throughout the period.

Measurement base

The Departmental Financial Statements and Non-departmental Schedules have been prepared on an historical cost basis with the exception of Artwork, which is revalued every five years.

Functional and presentation currency

The Departmental Financial Statements and Non-departmental Schedules are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000), other than the related party transaction disclosures in Note 15. The related party transaction disclosures are rounded to the nearest dollar. The functional currency of the Commission is New Zealand dollars.

Cash and cash equivalents

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

Income tax

The Commission is a public authority and consequently is exempt from income tax. Accordingly, no provision has been made for income tax.

Goods and services tax

Items in the financial statements are stated exclusive of goods and services tax (GST), except for receivables and payables, which are stated on a GST-inclusive basis. Where GST is not recoverable as input tax, it is recognised as part of the related asset or expense.

The net amount of GST recoverable from, or payable to, the Inland Revenue (IR) is included as part of receivables or payables in the statement of financial position.

The net GST paid to or received from the IR, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows.

Commitments and contingencies are disclosed exclusive of GST.

Changes in accounting policies

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

Standards issued and not yet effective and not early adopted

Standards and amendments, issued but not yet effective that have not been early adopted, and which are relevant to the Commission are:

Amendment to PBE IPSAS 2 Cash Flow Statement

An amendment to PBE IPSAS 2 requires entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes. This amendment is effective for the year ending 30 June 2022, with early application permitted. This amendment will result in additional disclosures. The Commission does not intend to early adopt the amendment.

PBE IPSAS 41 Financial instruments

PBE IPSAS 41 replaces PBE IFRS 9 Financial Instruments and is effective for the year ending 30 June 2023, with earlier adoption permitted. The Commission has assessed that there will be little change as a result of adopting the new standard as the requirements are similar to those contained in PBE IFRS 9. The Commission does not intend to early adopt the standard.

PBE FRS 48 Service Performance Reporting

PBE FRS 48 replaces the service performance reporting requirements of PBE IPSAS 1 Presentation of Financial Statements and is effective for the year ending 30 June 2023, with early adopted permitted. The Commission has not yet determined how application of PBE FRS 48 will affect its statement of service performance. It does not plan to adopt the standard early.

Budget and forecast figures

Basis of the budget and forecast figures

The 2021 budget figures are for the year ended 30 June 2021 and were published in the 2019/20 annual report. They are consistent with the Commission’s best estimate financial forecast information submitted to the Treasury for the Budget Economic and Fiscal Update (BEFU) for the year ending 2020/21.

The 2022 forecast figures are for the year ending 30 June 2022, which are consistent with the best estimate financial forecast information submitted to the Treasury for the BEFU for the year ending 2021/22.

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 2022 forecast figures have been prepared in accordance with and comply with PBE FRS 42. Prospective Financial Statements.

The forecast financial statements were approved for issue by the Chief Executive on 01 April 2021. The Chief Executive is responsible for the forecast financial statements, including the appropriateness of the assumptions underlying them and all other required disclosures.

Although the Commission regularly updates its forecasts, updated forecast financial statements for the year ending 30 June 2022 will not be published.

Significant assumptions used in preparing the forecast financial information

The forecast figures contained in these financial statements reflect the Commission’s purpose and activities and are based on a number of assumptions on what might occur during the 2021/22 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.

The main assumptions, which were adopted as at 01 April 2021, were as follows:

  • The Commission’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 current wages and salary costs, adjusted for anticipated remuneration changes.
  • Operating costs were based on historical experience and other factors that are believed to be reasonable in the circumstances and are the Commission’s best estimate of future costs that will be incurred.
  • Inclusion of the Social Wellbeing Agency.

The actual financial results achieved for 30 June 2022 are likely to vary from the forecast information presented, and the variations might be material. Since the approval of the forecasts, there is no significant change or event that would have a material effect on the forecasts.

Statement of cost allocation policies for Departmental Financial Statements

The Commission has determined the cost of outputs and categories using the following cost allocation system:

  • Direct costs are expenses incurred from activities in producing outputs. These costs are charged directly to the related appropriations.
  • Indirect costs are expenses incurred by corporate services functions that cannot be identified with a specific output. Indirect costs are allocated to each appropriation based on full-time equivalent personnel.

There have been no changes in the Commission’s general cost accounting policies since the date of the last audited Financial Statements.

Critical accounting estimates and assumptions

There are no critical accounting estimates and assumptions made in preparing these Financial Statements.

Capital management

The Commission manages its revenues, expenses, assets, liabilities and general financial dealings prudently.

It’s equity is largely managed as a by-product of managing revenue, expenses, assets, liabilities and compliance with the government budget processes, Treasury Instructions, and the PFA.

2. Revenue

Revenue Crown

Revenue from the Crown is measured based on the Commission's funding entitlement for the reporting period as reported in the Departmental Financial Statements.

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 Commission 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.

Other revenue

PIF reviews

Revenue from reviews is recognised based on percentage completed.

LDC Levies and LDC courses

Revenue from levies for the Leadership Development Centre are recognised on a straight line basis. Revenue from the courses are recognised as revenue on a straight line basis over the life of each course.

Recovery of rental costs and secondments

Recovery of rental costs and secondments from participating agencies is recognised as revenue on a straight line basis.

Public Service Fale contribution revenue

Revenue from the Public Service Fale contribution is recognised as revenue when the obligation to pay the expenses is incurred.

Clerical and administration pay equity claim team delivery revenue

Revenue from the Clerical and Administration Pay Equity Claim team is recognised as revenue when the obligation to pay the expenses is incurred.

Employee Led Networks membership levies

Revenue from levies for the Employee Led Networks programme is recognised as revenue on a straight line basis.

Breakdown of other revenue and further information

2020

Actual

$000

 

2021

Actual

$000

170

Agency contribution towards PIF reviews

7

2,218

LDC Levies

2,377

770

LDC Course and other revenue

676

 -

Public Service Fale contribution revenue

2,683

 -

Clerical and Administration Pay Equity Claim team delivery revenue

855

 -

Employee Led Networks levies

463

3,928

Other revenue (including recoveries)

1,959

7,086

Total other and departmental revenue

9,020

3. Personnel Costs

Accounting policy

Salaries and wages

Salaries and wages are recognised as an expense as employees provide services.

Superannuation schemes

Defined contribution schemes

Employee contributions to defined contribution plans such as the State Sector Retirement Savings Scheme, KiwiSaver, and the Government Superannuation Fund are accounted for as defined contribution superannuation schemes and are expensed in the surplus or deficit as incurred. Note that the Commission may make contributions to other defined contribution plans which employees may be members of, including defined benefit plans that are accounted for as a defined contribution plan.

Defined benefit scheme

The Commission makes contributions to the Defined Benefit Plan (DBP) Contributors Scheme (the scheme), which is managed by the Board of Trustees of the National Provident Fund. The scheme is a multiemployer defined benefit scheme.

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 in the plan will affect future contributions by individual employers, as there is no prescribed basis for allocation. The scheme is therefore accounted for as a defined contribution scheme.

2020

Actual

$000

 

2021

Actual

$000

29,071

Salaries and wages

30,514

354

Staff training and development

250

918

Superannuation contributions to defined contribution plans

942

144

Increase/(decrease) in employee entitlements

89

112

Redundancy

88

649

Other

388

31,248

Total personnel costs

32,271

4. Capital Charge

Accounting policy

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

The Commission pays a capital charge to the Crown on its equity (adjusted for memorandum accounts) as at 30 June and 31 December each year. The capital charge rate for the year ended 30 June 2021 was 5% (2020: 6%).

5. Other Operating Expenses

2020

Actual

$000

 

2021

Actual

$000

2021

Budget

$000

2021

Supps

$000

2022

Forecast

$000

1,615

Consultancy

2,021

1,531

1,721

1,579

478

Chief executives’ recruitment costs

346

450

620

450

664

Legal fees

203

154

104

103

109

Fees to Audit New Zealand for audit of financial statements - the Commission

115

120

120

120

1,361

Rental and operating lease costs

1,185

1,156

1,156

1,271

306

Other occupancy costs

217

171

157

177

2,732

IT and communication costs

2,746

2,257

2,996

2,996

303

Travel

122

209

458

209

3

Loss on disposal of property, plant and equipment

71

-

-

-

100

Sponsorship

170

159

199

149

1,189

Contractor fees for SWA

1,334

735

1,830

735

350

Costs paid to the Treasury for CASS

350

350

350

350

159

LDC Fellowships

15

-

-

-

2,687

Other operating costs

3,091

785

6,110

2,898

12,056

Total operating costs

11,986

8,077

15,821

11,037

6. Property, Plant And Equipment / Intangible Assets

Accounting policy

Property, plant and equipment is measured at cost, less accumulated depreciation and impairment losses, except for Artwork, which is revalued to fair values every five years, subject to regular assessment of market movements to ensure they do not differ materially from fair value. The latest revaluation was performed as at 30 June 2018.

Intangible assets are capitalised on the basis of the costs incurred to acquire and bring to use the specific asset. Direct costs include software acquisition and customisation costs by consultants or staff. Staff training costs are recognised as an expense when incurred. Intangible assets with finite lives are subsequently recorded at cost, less any amortisation and impairment losses. The carrying value of an intangible asset with a finite life is amortised on a straight-line basis over its useful life.

Depreciation and amortisation begins when an asset is available for use and ceases at the date that an asset is de-recognised. The depreciation and amortisation charge for each period is recognised in the Statement of Comprehensive Revenue and Expenses.

The useful lives of all classes of assets have been estimated as follows:

Asset Type

Useful Life

Depreciation/Amortisation Rate

Method

Computer equipment

3–5 years

20% – 33.33%

Straight line

Office equipment

4–5 years

20% – 25%

Straight line

Leasehold improvements

5 years

20%

Straight line

Works of art

N/A

N/A

N/A

Furniture and fittings

3–5 years

20% – 33.33%

Straight line

Intangible

3–5 years

20% – 33.33%

Straight line

Property, Plant and Equipment

 

 

Computer

Equipment

$000

Office

Equipment

$000

Leasehold

Improve-ments

$000

Works of Art

$000

Furniture

and

Fittings

$000

Total

$000

Cost

Balance at 1 July 2019

411

239

705

126

944

2,425

Additions

365

-

-

-

200

565

Disposals/transfers

(49)

(98)

-

-

(225)

(372)

Revaluation increase

-

-

-

-

-

-

Other movements

14

8

-

-

47

69

Balance at 30 June/1 July 2020

741

149

705

126

966

2,687

Additions

149

-

306

-

267

722

Disposals/transfers

(2)

(22)

(45)

-

(235)

(304)

Revaluation increase

-

-

-

-

-

-

Other movements

-

9

-

-

-

9

Balance at 30 June 2021

888

136

966

126

998

3,114

Accumulated depreciation and impairment losses

Balance at 1 July 2019

65

120

177

-

454

816

Depreciation expense

123

42

115

-

164

444

Elimination on disposal

(32)

(90)

-

-

(178)

(300)

Balance at 30 June/1 July 2020

156

72

292

-

440

960

Depreciation expense

220

27

158

-

205

610

Elimination on disposal

(2)

(11)

(15)

-

(195)

(223)

Balance at 30 June 2021

374

88

435

-

450

1,347

Carrying amounts

At 1 July 2019

346

119

528

126

490

1,609

At 1 July 2020

585

77

413

126

526

1,727

At 30 June 2021

514

48

531

126

548

1,767

Intangible Assets

 

Intangible Assets

$000

Work in Progress

$000

Total

$000

Cost

Balance at 1 July 2019

1,298

119

1,417

Additions

59

30

89

Disposals/transfers

119

(119)

-

Revaluation increase

 -

 -

-

Other movements

-

-

-

Balance at 30 June/1 July 2020

1,476

30

1,506

Additions

14

86

100

Disposals/transfers

(253)

(30)

(283)

Revaluation increase

 -

 -

-

Other movements

-

-

-

Balance at 30 June 2021

1,237

86

1,323

Accumulated Amortisation and impairment losses

Balance at 1 July 2019

278

-

278

Amortisation expense

507

-

507

Elimination on disposal

-

-

-

Balance at 30 June/1 July 2020

785

-

785

Amortisation expense

531

-

531

Elimination on disposal

 (283)

 -

(283)

Balance at 30 June 2021

1,033

-

1,033

Carrying amounts

At 1 July 2019

1,020

119

1,139

At 1 July 2020

691

30

721

At 30 June 2021

204

86

290

7. Receivables

Accounting Policy

Short-term receivables are recorded at the amount due, less an allowance for credit losses. The Ministry applies the simplified expected credit loss model of recognising lifetime expected credit losses for receivables.

In measuring expected credit losses, short-term receivables have been assessed on a collective basis as they possess shared credit risk characteristics. They have been grouped based on the days past due.

Short-term receivables are written off when there is no reasonable expectations of recovery. Indicators that there is no reasonable expectations of recovery include the debtor being in liquidation or the receivable being more than one year overdue.

Ageing of debtors and other receivables

2020

Actual

$000

 

2021

Actual

$000

1,992

Current

3,391

-

Past due 31–60 days

550

-

Past due 61–90 days

13

159

Past due over 91 days not impaired

68

2,151

Total

4,022

8(a) Creditors And Other Payables

Accounting Policy

Creditors and other payables are recorded at their face value.

2020

Actual

$000

 

2021

Actual

$000

 

Payables under exchange transactions

 

1,210

Trade Creditors

1,816

1,526

Accrued Expenses

1,767

2,736

 Total Payables under exchange transactions

3,583

 

 Payables under non-exchange transactions

 

1,347

Taxes Payable

1,423

1,347

 Total Payables under non-exchange

1,423

4,083

Total Trade Payables and Other Payables

5,006

8(b) Revenue in Advance

Accounting Policy

Revenue in advance is recognised where amounts billed are in excess of the amounts recognised as revenue.

2020

Actual

$000

 

2021

Actual

$000

2,403

 Leadership Development Centre levies and courses

2,861

467

 Public Service Fale contribution revenue

1,609

-

 Clerical and Administration Pay Equity Claim team delivery revenue

945

-

 Employee-led Networks contributions

692

-

 Organisation for Economic Co-operation and Development (OECD) contributions

102

-

 Department of Internal Affairs - Innovation Fund

308

14

 Other revenue

15

2,884

Total Revenue in Advance

6,532

9. Employee Entitlements (Departmental)

2020

Actual

$000

 

2021

Actual

$000

 

Current liabilities

 

358

Accrued salaries and performance pay

481

1,297

Annual leave

1,413

38

Sick leave

44

63

Retirement and long service leave

5

1,756

Total current portion

1,943

 

Non-current liabilities

 

69

Long service leave

94

69

Total non-current portion

94

1,825

Total employee entitlements

2,037

Presentation of employee entitlements

Sick leave, annual leave, vested long service leave and non-vested long service leave and retirement leave expected to be settled within 12 months of balance date are classified as a current liability. All other employee entitlements are classified as a non-current liability.

Retirement and Long Service Leave

The present value of the retirement and long service leave obligations depends on a number of factors that are determined on an actuarial basis using some assumptions. Two key assumptions used in calculating this liability include the discount rate (year 1: 0.380%; year 2: 0.810%; year 3+ : 3.080%) and the salary-inflation factor (year 1: 0.00%; year 2+: 3.080%). Any changes in these assumptions will impact on the carrying amount of the liability. In determining the appropriate discount rate, the Commission adopts the central table of risk-free discount rates and Consumer Price Index (CPI) assumptions provided by the Treasury.

10. Provisions

The Commission is required at the expiry of the lease term in the Reserve Bank on 28 February 2024 to make good the premises. $0.119 million has been provided for this.

 

Lease Make Good

$000

LDC Fellowships

$000

Ria McBride Award

$000

SWA

Redundancy

$000

Total

$000

Opening balance at 1 July 2020

119

130

15

109

373

Additional provisions made

-

15

36

-

51

Provisions released

-

(1)

(2)

(57)

(60)

Closing balance at 30 June 2021

119

144

49

52

364

11. Reconciliation Of Net Surplus To Net Cash Flows From Operating Activities

2020

Actual

$000

 

2021

Actual

$000

3,713

Net Surplus (Deficit)

Add/(Less) Non-Cash Items

1,775

951

Depreciation and Amortisation

1,141

951

Total Non-Cash Items

1,141

 

Add/(Less) Working Capital Movement

 

975

(Increase)/Decrease in Receivables and Prepayments

(1,615)

(1,152)

Increase/(Decrease) in Creditors and Other Payables

4,555

52

Increase/(Decrease) in GST

17

254

Increase/(Decrease) in Provisions

(9)

114

Increase/(Decrease) in Employee Entitlements

187

243

Total Net Movement in Working Capital Items

3,135

(35)

Add/(Less) Movements in Non-current Liabilities

Add/(Less) Items Classified as Investing Or Financing Activities

25

-

(Gain)/Losses on Disposal of Property, Plant and Equipment

71

4,872

Net Cash Flows from Operating Activities

6,147

12. Summary Analysis Of The Public Service Commission And The Social Wellbeing Agency

Revenue and Expenses

The

Commission

Actual 2021

$000

SWA

Actual

2021

$000

Total

Actual

2021

$000

Revenue

Revenue Crown

27,580

10,797

38,377

Revenue other

9,237

130

9,367

Total Revenue (before inter-agency eliminations)

36,817

10,927

47,744

Elimination of inter-entity transactions

(347)

-

(347)

Total Revenue

36,470

10,927

47,397

Expenditure

Personnel costs

27,121

5,150

32,271

Capital charge

224

-

224

Depreciation and amortisation

1,141

-

1,141

Other operating

7,165

5,168

12,333

Total Expenses (before inter-agency eliminations)

35,651

10,318

45,969

Elimination of inter-entity transactions

(347)

-

(347)

Total Expenses

35,304

10,318

45,622

Net Surplus

1,166

609

1,775

 

Assets and Liabilities

The

Commission

Actual 2021

$000

SWA

Actual

2021

$000

Total

Actual

2021

$000

Current assets

17,036

3,057

20,093

Non-current assets

2,057

-

2,057

 

 

 

 

Current liabilities

12,169

3,057

15,226

Non-current liabilities

213

-

213

Net Assets

6,711

-

6,711

Total Equity

6,711

-

6,711

13. Equity

Accounting policy

Equity is the Crown’s investment in the Commission and is measured as the difference between total assets and total liabilities. Equity is disaggregated and classified as taxpayers’ funds, memorandum accounts, and artwork revaluation reserves.

Memorandum accounts

Memorandum accounts reflect the cumulative surplus or deficit on those departmental services provided that are intended to be fully cost recovered from third parties through fees, levies, or charges. The balance of each memorandum account is expected to trend toward zero over time.

Artwork revaluation reserves

These reserves relate to the revaluation of artwork to fair value.

Breakdown of equity and further information

2020

Actual

$000

 

2021

Actual

$000

 

Taxpayers' funds

 

5,990

Balance as at 1 July

5,823

3,713

Surplus

1,775

475

Capital injections

188

(642)

Capital withdrawal

-

-

Transfer of memorandum account net (surplus)/deficit for the year

(275)

(3,713)

Return of operating surplus to the Crown

(1,500)

5,823

Balance as at 30 June

6,011

 

Artwork revaluation reserves

 

96

Balance as at 1 July

96

-

Revaluation gains

-

96

Balance as at 30 June

96

 

Memorandum accounts

 

-

Balance as at 1 July

-

-

Retention of surplus from financial year 2019/20

329

-

Net memorandum account surpluses/(deficits) for the year

275

-

Balance as at 30 June

604

5,919

Total equity

6,711

 

2020

Actual

$000

 

2021

Actual

$000

 

Leadership Development Centre memorandum account

 

-

Balance as at 1 July

-

-

Retention of surplus from financial year 2019/20

329

-

Revenue

3,052

-

Expenses

(2,777)

-

Surplus/deficit for the year

275

-

Balance as at 30 June

604

This memorandum account summarises financial information relating to the accumulated surpluses and deficits incurred in the delivery of development programmes, resources and experiences by the Leadership Development Centre (a function of the Commission) to third parties on a full cost recovery basis.

The balance of the memorandum account is expected to trend toward zero over a reasonable period of time, with interim deficits being met either from cash from the Commission’s statement of financial position or by seeking approval for a capital injection from the Crown. Capital injections will be repaid to the Crown by way of cash payments throughout the memorandum account cycle.

14. Return of Operating Surplus

The Commission’s obligation to return a portion of its operating surplus in accordance with the Public Finance Act 1989 is recognised at face value as it is required to be paid by 31 October of each year, per Treasury instructions.

2020

Actual

$000

 

Notes

2021

Actual

$000

3,713

Net (deficit)/surplus

 

1,775

 

Add back:

 

 

-

Net operating deficit/(surplus) in memorandum accounts

13

(275)

3,713

Return of operating surplus to the Crown

 

1,500

15. Related Party Transactions

All related party transactions have been entered into on an arm’s-length basis. 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.

The Commission is a wholly-owned entity of the Crown. The Government significantly influences the roles of the Commission as well as being its major source of revenue.

In conducting its activities the Commission is required to pay various taxes and levies (such as GST, FBT, PAYE and ACC levies) to the Crown and entities related to the Crown. The payment of these taxes and levies, other than income tax, is based on the standard terms and conditions that apply to all tax and levy payers.

Key management personnel

The

Commission

Actual 2020

$000

SWA

Actual

2020

$000

 

The

Commission

Actual 2021

$000

SWA

Actual

2021

$000

 

 

Leadership Team, including the Public Service Commissioner

 

 

3,523

1,940

Remuneration

3,952

1,272

10.47

8.70

Full-time equivalent staff

10.77

5.52

The above key management personnel compensation excludes the remuneration and other benefits the Minister of the Public Service receives. The Minister’s remuneration and other benefits are not received only for his role as a member of key management personnel of the Commission. The Minister’s remuneration and other benefits are set by the Remuneration Authority under the Members of Parliament (Remuneration and Services) Act 2013 and are paid under Permanent Legislative Authority, and not paid by the Commission.

Related party transactions involving key management personnel (or their close family members)

There were no related party transactions involving key management personnel or their close family members. No provision has been required, nor any expense recognised, for impairment of receivables from related parties (2020: Nil).

16. Events After Balance Date

There have been no significant events subsequent to balance date that require adjustment to the Financial Statements or disclosure.

17. Explanation Of Major Variances Against Budget

The following major budget variations occurred between the 2020/21 Actuals and the 2020/21 Budget:

Statement of Comprehensive Revenue and Expense

Revenue

Revenue Crown was higher than originally budgeted mainly due to expense transfers that were approved after the budget for delayed work from the 2019/20 year. The largest of these was the delay in the delivery of the Data Exchange project. Revenue other was higher than originally budgeted due to the adjustments for the Public Service Fale and the inclusion of two new programmes during the year: the Clerical and Administration Pay Equity Claim and the Employee-Led Networks programme.

Expenditure

Personnel costs were higher than budgeted due to the adjustments for the Public Service Fale, Clerical and Administration Pay Equity Claim and the Employee-Led Networks programme. Depreciation and amortisation costs were higher than budgeted due to increased capital expenditure on fitting out an additional floor, which was acquired during the year. The higher spend in other operating expenditure corresponds to the inclusion of the additional work programmes mentioned above.

Statement of Financial Position, Cashflow and Changes in Equity

Variances in the Statement of Position and Statement of Cashflow are largely due to timing differences between when the goods or services were delivered and when the cash changed hands. The bank balance is higher than budgeted due to the unbudgeted surplus made during the year. This can also be seen in the Statement of Cash Flow where actual net cash flow exceeds budgeted net cash flow (the budget being the Supplementary Estimates budget). This surplus will be repaid to the Crown.

There are variances in the Statement of Changes in Equity due to the capital injection received for the Social Wellbeing Agency’s refresh of their premises (this was funded through a fiscally neutral adjustment). The remaining variance relates to the creation of a memorandum account for the Leadership Development Centre.

18. Impact Of COVID-19 On The Commission

The Public Service Fale had budgeted to undertake a significant amount of international travel throughout the Pacific as part of their work programme. However, COVID-19 restrictions meant that most of this travel was not able to take place. This impacts both expenditure and revenue as the travel would have been recovered from the Ministry of Foreign Affairs and Trade.

The Commission continues to play a significant role in supporting the response to COVID-19 and this is explored in the section Responding to and recovering from COVID-19 However, this work is managed by re-prioritising resources and reallocating staff, resulting in a minimal impact on the financial statements.

19. Financial Instruments

The carrying amounts of financial assets and liabilities in each of the PBE IFRS 9 financial instrument categories are:

2020

Actual

$000

 

2021

Actual

$000

 

Financial assets measured at amortised cost

 

10,897

 Cash and cash equivalents

13,026

5,179

 Receivables (excluding taxes receivable)

7,050

16,076

Total financial assets measured at amortised cost

20,076

 

 Financial liabilities measured at amortised cost

 

2,736

 Payables (excluding income in advance and taxes payable)

3,583

2,736

Total financial liabilities measured at amortised cost

3,583

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