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	-	-	-

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	-	-	-	-

** 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)

** 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)

** 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	-	-	-	-	-

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

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.