Overview of our financial results
Operating result
For 2023/24, our Office had a surplus of $3.680 million. Our net operating results by appropriation are summarised below.
| Audit and Assurance Services $000 |
Statutory Auditor Function $000 |
Remuneration of Auditor-General and Deputy Auditor-General $000 |
Total $000 |
|
|---|---|---|---|---|
| Revenue | 132,376 | 20,527 | 1,166 | 154,069 |
| Costs | (130,066) | (19,157) | (1,166) | (150,389) |
| Surplus/(Deficit) | 2,310 | 1,370 | - | 3,680 |
The surplus of $2.310 million in Audit and Assurance Services arose from additional revenue generated from the audit of council's long-term plans, in addition to the annual audit and other assurance engagements completed by Audit New Zealand. This surplus 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 $1.370 million in the Statutory Auditor Function arose from the deferral of some projects in the Office's Information Systems Strategic Plan to 2024/25 and 2025/26. The surplus 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 asked to confirm or approve an amended amount in November 2024. The IPET increases the available budget in 2024/25 by up to $0.6 million for the deferral of projects that were not completed in 2023/24.
Memorandum account
The surplus for the year reflects additional revenue from audits of councils' long-term plans and the closing balance of the memorandum account reflects a capital contribution of $7 million from the Crown to address the increased time and non-recoverable costs of audits arising from Covid-19.
| Audit and Assurance Services memorandum account | $000 |
|---|---|
| Opening balance at 1 July 2023 | 2,018 |
| Audit and Assurance Services surplus | 2,310 |
| Capital contribution | 7,000 |
| Closing balance at 30 June 2024 | 11,328 |
Investment in our assets
In 2023/24, we continued our replacement programme for IT hardware, furniture, and vehicles. We also continued implementing our Information Systems Strategic Plan, which covers a programme of work to improve our information systems and services.
Due to spending more time than anticipated on implementing our Audit Management System this year, we did not spend as much as we anticipated on implementing other IT software projects.