Appropriation statements

Statement of budgeted versus actual expenses and capital expenditure incurred against appropriations for the year ended 30 June 2024

This statement reports actual expenses incurred against each appropriation administered by the Office. End-of-year performance information for all appropriations is reported in this annual report.

Annual and permanent appropriations for Vote Audit Actual
2023/24
$000
Actual
2022/23
$000
Main Estimates
2023/24
$000*
Supplementary
Estimates
2023/24
$000*
Main
Estimates
2024/25
$000*
Output expenses
Audit and Assurance Services RDA** 129,916 110,928 118,026 123,563 122,491
Audit and Assurance Services 150 5,422 13,833 13,983 11,960
Total appropriations for output expenses 130,066 116,350 131,859 137,546 134,451
Other expenses
Remuneration of Auditor-General and Deputy Auditor-General PLA (permanent legislative authority)‡ 1,166 1,099 1,099 1,166 1,166
Multi-category appropriations
Statutory Auditor Function MCA
Performance audits and inquiries 10,726 9,824 13,126 13,426 15,251
Supporting accountability to Parliament 8,432 8,784 6,901 7,150 6,901
Total Statutory Auditor Function MCA 19,158 18,608 20,027 20,576 22,152
Total appropriations for operating expenditure 150,390 136,057 152,985 159,288 157,769
Capital expenditure
Controller and Auditor-General Capital Expenditure PLA‡‡ 2,559 2,818 4,297 4,585 5,030
Total annual and permanent appropriations 152,949 138,875 157,282 163,873 162,799

* All Estimates information is unaudited. The figures under Main Estimates 2023/24 reflect the forecasts published in Budget 2023 and in the Office's 2022/23 annual report, and the figures under Supplementary Estimates 2023/24 reflect the updated forecasts published in Budget 2024.

** The Office is permitted to incur expenditure up to the amount of revenue earned for this appropriation. In 2023/24, revenue under this appropriation was $129.916 million – see "Financial performance for Audit and Assurance Services RDA".

‡ Costs incurred pursuant to clause 5 of Schedule 3 of the Public Audit Act 2001.

‡‡ Costs incurred pursuant to section 24(1) of the Public Finance Act 1989.

Statement of expenses and capital expenditure incurred without, or in excess of, appropriation or other authority for the year ended 30 June 2024

The Office did not incur any expenses or capital expenditure without, or in excess of, appropriation or other authority in the year ended 30 June 2024 (2023: Nil).

Statement of capital injections without, or in excess of, appropriation or other authority for the year ended 30 June 2024

The Office did not receive any capital injections without, or in excess of, appropriation or other authority in the year ended 30 June 2024 (2023: Nil).

Statutory Auditor Function MCA

MCA means multi-category appropriation – more than one aspect of our work is covered by this appropriation.

The purpose of this appropriation is to support Parliament in ensuring accountability for the use of public resources. It includes two categories.

Supporting accountability to Parliament

This category is limited to reporting to Parliament and others as appropriate on matters arising from audits and inquiries, reporting to and advising select committees, and advising other organisations in New Zealand and abroad to support Parliament and the public in holding public organisations to account for their use of public resources.

This category is intended to provide advice and assistance to Parliament and our other stakeholders to assist them in their work to improve the performance and accountability of public organisations. Our Controller function operates under this category and provides independent assurance to Parliament and the public that public money has been spent lawfully and within parliamentary authority.

Performance audits and inquiries

This category is limited to carrying out and reporting on performance audits and inquiries of public organisations under the Public Audit Act 2001 and responding to requests for approvals in relation to pecuniary interest questions regulated by the Local Authorities (Members' Interests) Act 1968.

This category is intended to provide Parliament and the public with assurance about how well public organisations use resources and manage a range of matters and programmes. We make recommendations where we consider improvements could be made.

Financial performance for Statutory Auditor Function MCA

Actual
2023/24
$000
Actual
2022/23
$000
Main Estimates
2023/24
$000*
Supplementary
Estimates
2023/24
$000*
Main Estimates
2024/25
$000*
Income
Crown 19,957 20,508 19,657 19,957 21,782
Other 571 474 370 619 370
Total income 20,528 20,982 20,027 20,576 22,152
Expenditure (19,158) (18,608) (20,027) (20,576) (22,152)
Surplus 1,370 2,374 - - -

* All Estimates information is unaudited. The figures under Main Estimates 2023/24 reflect the forecasts published in Budget 2023 and in the Office's 2022/23 annual report, and the figures under Supplementary Estimates 2023/24 reflect the updated forecasts published in Budget 2024.

Statutory Auditor Function MCA costs were $1.418 million lower than in the Supplementary Estimates. This was mainly due to the deferral of some projects in the Office's Information Systems Strategic Plan to 2024/25 and 2025/26 while we reviewed the programme of work and considered new opportunities, like artificial intelligence.

The surplus of $1.370 million is subject to an In-Principle Expense Transfer (IPET) of $0.6 million approved by the Officers of Parliament Committee (OPC) in March 2024. OPC will be requested to confirm or approve an amended amount in October 2024. The IPET currently allows the Office to increase the available budget in 2024/25 by up to $0.6 million for the deferral of projects that were not completed in 2023/24.

Audit and Assurance Services RDA

RDA means revenue-dependent appropriation – the amount of money depends on the audit fees charged for audits of public organisations.

This appropriation is limited to audit and related assurance services as authorised by statute. It provides for audit services to all public organisations (except smaller public organisations, such as cemetery trusts and reserve boards) and other audit-related assurance services. The audit services we provide are funded by audit fees charged to public organisations.

Financial performance for Audit and Assurance Services RDA

Actual
2023/24
$000
Actual
2022/23
$000
Main Estimates
2023/24
$000*
Supplementary
Estimates
2023/24
$000*
Main Estimates
2024/25
$000*
Income from third parties 132,226 110,928 118,026 123,563 122,491
Expenditure (129,916) (110,928) (118,026) (123,563) (122,491)
Surplus** 2,310 - - - -

* All Estimates information is unaudited. The figures under Main Estimates 2023/24 reflect the forecasts published in Budget 2023 and in the Office's 2022/23 annual report, and the figures under Supplementary Estimates 2023/24 reflect the updated forecasts published in Budget 2024.

** Note 15 to the financial statements provides more information about the transfer of surpluses and deficits to and from the Office's memorandum account.

The higher level of actual income and expenditure in 2023/24 primarily reflects more work completed and more fees earned on audits of public organisations, including the audits of councils' long-term plans, carried out by audit services providers.

Because this is a revenue-dependent appropriation, expenditure appropriations for this output class are capped at the revenue total for the year. In years where there is a deficit, the remainder of the costs relating to these outputs are reported in the Audit and Assurance Services appropriation.

Audit and Assurance Services

This appropriation is limited to the performance of audit and related assurance services as required or authorised by statute. It provides for audit and related assurance services of smaller organisations, such as cemetery trusts and reserve boards, which are funded by the Crown, rather than by audit fees charged to these organisations.

This appropriation also provides for when costs exceed revenue under the Audit and Assurance Services RDA appropriation. Deficits reported through this appropriation are attributed to the Audit and Assurance Services memorandum account.

Financial performance for Audit and Assurance Services

Actual
2023/24
$000
Actual
2022/23
$000
Main Estimates
2023/24
$000*
Supplementary
Estimates
2023/24
$000*
Main Estimates
2024/25
$000*
Income 150 150 150 150 150
Expenditure (150) (5,422) (13,833) (13,983) (11,960)
(Deficit)** - (5,272) (13,683) (13,833) (11,810)

* All Estimates information is unaudited. The figures under Main Estimates 2023/24 reflect the forecasts published in Budget 2023 and in the Office's 2022/23 annual report, and the figures under Supplementary Estimates 2023/24 reflect the updated forecasts published in Budget 2024.

** Note 15 to the financial statements provides more information about the transfer of surpluses and deficits to and from the Office's memorandum account.

The table below shows a combined view of the financial performance for the two appropriations.

Combined financial performance for Audit and Assurance Services RDA and Audit and Assurance Services

Actual
2023/24
$000
Actual
2022/23
$000
Main Estimates
2023/24
$000*
Supplementary
Estimates
2023/24
$000*
Main Estimates
2024/25
$000*
Income from Crown 150 150 150 150 150
Income from third parties 132,226 110,928 118,026 123,563 122,491
Total income 132,376 111,078 118,176 123,713 122,641
Expenditure (130,066) (116,350) (131,859) (137,546) (134,451)
Surplus/(Deficit)** 2,310 (5,272) (13,683) (13,833) (11,810)

* All Estimates information is unaudited. The figures under Main Estimates 2023/24 reflect the forecasts published in Budget 2023 and in the Office's 2022/23 annual report, and the figures under Supplementary Estimates 2023/24 reflect the updated forecasts published in Budget 2024.

** Note 15 to the financial statements provides more information about the transfer of surpluses and deficits to and from the Office's memorandum account.

Remuneration of Auditor-General and Deputy Auditor-General PLA

This appropriation is limited to remuneration expenses for the Auditor-General and the Deputy Auditor- General, as authorised by clause 5 of Schedule 3 of the Public Audit Act 2001. This permanent appropriation provides for payment to the Auditor-General and Deputy Auditor-General as determined by the Remuneration Authority.

Financial performance for Remuneration of Auditor-General and Deputy Auditor-General PLA

Actual
2023/24
$000
Actual
2022/23
$000
Main Estimates
2023/24
$000*
Supplementary
Estimates
2023/24
$000*
Main Estimates
2024/25
$000*
Income 1,166 1,099 1,099 1,166 1,166
Expenditure (1,166) (1,099) (1,099) (1,166) (1,166)
Surplus - - - - -

* All Estimates information is unaudited. The figures under Main Estimates 2023/24 reflect the forecasts published in Budget 2023 and in the Office's 2022/23 annual report, and the figures under Supplementary Estimates 2023/24 reflect the updated forecasts published in Budget 2024.

The Auditor-General and Deputy Auditor-General lead the performance of the Office. The performance of the Office's activities, including this appropriation, is reflected in the information provided in this annual report.

Controller and Auditor-General – Capital Expenditure PLA

This appropriation is limited to the purchase of assets by, and for the use of, the Auditor-General, as authorised by section 24(1) of the Public Finance Act 1989. It is intended to achieve the renewal and replacement of assets that support the Auditor-General's operations.

Financial performance for Controller and Auditor-General – Capital Expenditure PLA

Actual
2023/24
$000
Actual
2022/23
$000
Main
Estimates 2023/24
$000*
Supplementary
Estimates
2023/24
$000*
Main
Estimates
2024/25
$000*
Property, plant, and equipment 628 1,451 2,671 2,856 1,759
Intangible assets 1,743 1,160 1,626 1,729 3,271
Other 188 207 - - -
Total capital expenditure 2,559 2,818 4,297 4,585 5,030

* All Estimates information is unaudited. The figures under Main Estimates 2023/24 reflect the forecasts published in Budget 2023 and in the Office's 2022/23 annual report, and the figures under Supplementary Estimates 2023/24 reflect the updated forecasts published in Budget 2024.

Our capital expenditure programme provides for the purchase of facilities and tools to enable our staff to carry out their work – for example, hardware and software for information systems, vehicles, building fit-outs, and furniture and fittings.

This year, we spent significantly less on software assets than planned. This was because we deferred the implementation of several software projects related to our Information Systems Strategic Plan until 2024/25 and 2025/26 while we reviewed the programme of work and considered new opportunities, like artificial intelligence.

The lower spend on property, plant, and equipment primarily reflects delays in the refurbishment of our Wellington office.