Note 20: Explanations of significant variances against the Main Estimates

Explanations of significant variances from the Office's original 2017/18 budget figures (2017/18 Main Estimates) are as follows:

Statement of comprehensive revenue and expense

The overall surplus for the year was $1.4 million, which was $0.6 million less than budgeted in the Main Estimates.

The surplus in the audit and assurance services revenue-dependent appropriation was $1.2 million less than budgeted, with higher net costs of delivering audits. These costs included additional personnel costs in Audit New Zealand and additional work carried out by contracted audit service providers.

The lower surplus in audit and assurance services was partly offset by an unbudgeted surplus of $0.5 million relating to performance audits and inquiries, which was mainly due to lower personnel costs in the OAG.

Statement of financial position

Receivables are $1.6 million higher than the Main Estimates, due to timing of billing of audit fees. This has also resulted in a lower than budgeted cash balance.

Employee entitlements were $1.2 million higher than the Main Estimates, due higher leave balances and additional staff.

The balance of the memorandum account was $1m less than the Main Estimates, reflecting the lower surplus on the audit and assurance services revenue dependent appropriation.