Notes to the Non-Departmental Statements and Schedules

for the year ended 30 June 2021.

1. Statement Of Accounting Policies

Reporting Entity

These non-departmental statements and schedules present financial information on public funds managed by the Commission on behalf of the Crown.

These non-departmental balances are consolidated into the Financial Statements of the Government for the year ended 30 June 2021. 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 for the year ended 30 June 2021.

Basis of Preparation

The non-departmental statements and schedules have been prepared in accordance with the accounting policies of the consolidated Financial Statements of the Government, Treasury Instructions, and Treasury Circulars.

Measurement and recognition rules applied in the preparation of these non-departmental statements and schedules are consistent with generally accepted accounting practice (Public Benefit Entity Accounting Standards) as appropriate for public benefit entities.

Presentation currency and rounding

The non-departmental statements and schedules are presented in New Zealand dollars (NZ dollars) and all values are rounded to the nearest thousand dollars ($000).

Standard issued and not yet effective and not early adopted

PBE IPSAS 41 Financial instruments

PBE IPSAS 41 Financial Instruments replaces PBE IFRS 9 Financial Instruments and is effective for 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 for the non-departmental statements.

Summary of significant accounting policies

Significant accounting policies are included in the notes to the departmental financial statements and non-departmental schedules.

2. Impact of Covid-19

The Covid-19 pandemic has not had a significant financial impact on the non-departmental statements and schedules.

3. Explanation of major variances against budget

Schedule of revenue and schedule of expenses

The budget in both schedules includes a contingency component to allow for unplanned expenditure and revenue relating to chief executives. This explains the variance in both revenue and expenditure, as any increase in chief executive expenditure would generate a commensurate increase in revenue as the costs are recovered from the respective agency.

Schedule of assets and schedule of liabilities

The variance in the schedule of assets results from the budget for cash. This assumed a higher level of expenditure as budgeted for in the schedule of Non-departmental expenses. This $1m underspend in expenses is the main contribution to the increase in the bank balance.

The variance in the schedule of liabilities results from underbudgeted retirement leave.

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