Note 3: Operating Costs

Actual   Actual
June 2004   June 2005
$(000)   $(000)
126 Audit fees for audit of financial statements 139
- Audit fees for other services provided 35
2,845 Consulting 3,057
- Finance lease interest costs 279
8,004 Operating lease rentals 7,823
168 Bad debts written-off 32
- Fixed asset write-offs 475
(139) Increase/(decrease) in provision for doubtful debts 230
90,784 Other operating costs 88,404
101,788 Total operating costs 100,474

Fixed asset write-offs relate to leasehold improvements on surplus accommodation.

Note 4: Depreciation

Actual   Actual
June 2004   June 2005
$(000)   $(000)
40 Buildings 39
382 Leasehold improvements 439
1,571 Plant and equipment 3,313
- Leased plant and equipment 2,439
1,042 Motor vehicles 1,130
3,035 Total depreciation 7,360

The Ministry recognised plant and equipment rented under finance leases as assets for the first time as at 30 June 2004. Accordingly this is the first year there has been a depreciation charge on leased plant and equipment.

Note 5: Capital Charge

The Ministry pays a capital charge to the Crown on its taxpayers' funds as at 30 June and 31 December each year. The capital charge rate for the year ended 30 June 2005 was 8 percent (2004, 8.5 percent).

Note 6: Other Expenses

Actual   Actual
June 2004   June 2005
$(000)   $(000)
19 Restructuring expenses (66)
19 Total other expenses (66)

Negative expenditure is due to the reversal of an unused amount accrued for restructuring costs in past years.

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