Overview of our financial results

Annual report 2019/20.

Operating result

For 2019/20, our Office had a deficit of $1.639 million. Our net operating results by output are summarised below.

Audit and Assurance Services
Statutory Auditor Function
Remuneration of Auditor-General and Deputy
Total $000
Revenue 81,968 15,155 1,099 98,157
Costs (85,353) (13,409) (1,099) (99,796)
Surplus/(Deficit)* (3,385) 1,746 - (1,639)

* The operating deficit excludes gain on sale of assets, which was $5,000 for the year.

The deficit of $3.385 million on Audit and Assurance Services is mainly due to the effect of the Covid-19 pandemic on the timing of our audit fee revenue. This deficit is transferred to our memorandum account, which was set up to help us manage the peaks and troughs in our audit fee revenue cycle.

The surplus of $1.746 million on the Statutory Auditor Function will be returned to the Crown, although we have subsequently sought an increase of funding of $1.008 million in 2020/21 to facilitate the completion of work delayed by the Covid-19 pandemic.

Memorandum account

The deficit for the year was higher than planned, mainly due to the effect of the Covid-19 pandemic on the timing of audit fee revenue. We expect the memorandum account to return to surplus in 2020/21.

Audit and Assurance Services
memorandum account
Opening balance at 1 July 2019 1,826
Audit and Assurance Services deficit (3,385)
Closing balance at 30 June 2020 (1,559)

Investment in our assets

In 2019/20, we maintained our replacement programme for IT hardware and vehicles. We completed the upgrade of our document management system and refreshed some of the furniture in our Wellington office.

Graph that shows the investment in our assets.