Non-Departmental Statements and Schedules
Introduction/Overview
The following non-departmental statements and schedules record the expenses, revenue, capital receipts, assets and liabilities the Ministry manages on behalf of the Crown. As these assets and liabilities are neither controlled by the department nor used in the production of the department’s outputs, they are not recorded in the Ministry’s financial statements.
The Ministry administered $125.631 million of expenses, $82.785 million of revenue, $2.015 million of capital receipts, $255.865 million of assets and $17.265 million of liabilities on behalf of the Crown for the year ending 30 June 2006. Further details of the Ministry’s management of these Crown assets and liabilities are provided in the Output Performance sections of this report.
The financial information reported in these statements and schedules is consolidated into the Crown financial statements, and therefore readers of these statements and schedules should also refer to the Crown financial statements for the year ended 30 June 2006.
Statement of Accounting Policies
Measurement System
Measurement and recognition rules applied in the preparation of these non-departmental financial statements and schedules are consistent with generally accepted accounting practice and Crown accounting policies.
Accounting Policies
The following particular accounting policies, which materially affect the measurement of financial results and financial position, have been applied.
Budget Figures
The budget figures are those amended by the 2005/06 Supplementary Estimates.
Revenue
The Ministry collects revenue on behalf of the Crown from the sale of forest produce and the collection of biosecurity infringement fines. Such revenue is recognised when earned and is reported in the financial period to which it relates.
Receivables and advances
Receivables and advances are recorded at estimable realisable value, after providing for doubtful and uncollectible debts.
Creditors and Payables
Creditors and payables are recorded at the estimated obligation to pay.
Goods and Services Tax (GST)
The Schedule of Non-Departmental Expenses and Statement of Non-Departmental Expenditure and Appropriations are GST inclusive for 2004/05 and GST exclusive for 2005/06.
The Schedule of Non-Departmental Assets and Schedule of Non-Departmental Liabilities are exclusive of GST, except for Receivables and Advances and Payables and Provisions, which are GST inclusive. All other statements and schedules are GST exclusive.
Property, Plant and Equipment
Land and buildings are stated at fair value as determined by an independent registered valuer. Fair value is determined using market-based evidence. Land and buildings are revalued at least every five years. Additions between revaluations are recorded at cost.
The results of revaluing land and buildings are credited or debited to an asset revaluation reserve for that class of asset. Where a revaluation results in a debit balance in the revaluation reserve, the debit balance will be expensed in the Statement of Financial Performance.
Commercial forests are valued at the net present value of future cash flows after tax, with any realised and unrealised gains or losses reported in the Statement of Financial Position.
All other property, plant and equipment, or groups of assets forming part of a network which are material in aggregate, costing more than $5,000 are capitalised and recorded at cost. Any write-down of an item to its recoverable amount is recognised in the Statement of Financial Performance.
Depreciation
Depreciation is provided on a straight line basis on all fixed assets, other than freehold land at a rate which will write off the cost (or valuation) of the assets to their estimated residual value over their useful lives.
Commitments
Future expenses and liabilities to be incurred on contracts entered into at balance date are disclosed as commitments to the extent there are equally unperformed obligations.
Contingent Liabilities
Contingent liabilities are disclosed at the point at which the contingency is evident.
Changes in Accounting Policies
The Crown has changed its accounting policy for GST to comply with the Public Finance Amendment Act 2004. Appropriations for non-departmental expenses and capital are accounted for on a GST exclusive basis with effect from 1 July 2005.
All policies, other than noted above, have been applied on a basis consistent with the previous year.
Contact for Enquiries
Strategy and Performance Group
Ministry of Agriculture and Forestry
Pastoral House
25 The Terrace
PO Box 2526, Wellington
Tel: +64 4 894 0100
Fax: +64 4 894 0738
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