Note 15: Related party transactions

Annual Report for the year ended 30 June 2010.

The Office is a wholly owned entity of the Crown. The Office transacts with government departments, Crown entities, and state-owned enterprises on an arm's-length basis. Examples of those transactions include the Office providing audit services, paying ACC levies, and purchasing airfares and postal services, all of which occur within a normal supplier or client relationship. The transactions are carried out on terms and conditions no more or less favourable than those which it is reasonable to expect the Office would have adopted if dealing with that entity at arm's length in the same circumstances, and therefore have not been disclosed.

During the year, there were transactions between the Office and close family members of key management personnel, as follows:

  • Some close family members of key management personnel were employed by the Office. The terms and conditions of their appointment were no more favourable than the Office would have adopted if there were no relationship to key management personnel.
  • Close family members of a member of key management personnel were directors in a company that provided services to the Office under a contract that was entered into prior to the appointment of the member. The cost of the services purchased was $8,381 (2009 – $6,800) and there was a balance outstanding at balance date of $8,381 (2009 – $6,800).

Key management personnel compensation

Actual   Actual
2009   2010
$000   $000
2,946 Salaries and other short-term employee benefits 3,005
0 Post-employment benefits 0
0 Other long-term benefits 0
0 Termination benefits 0
2,946   3,005

Key management personnel include the Auditor-General, the Deputy Auditor-General, and the ten members of the OAG and Audit New Zealand Leadership Teams.

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