Note 20: Explanations of significant variances against the Main Estimates

Explanations of significant variances from the Office's original 2023/24 budget figures (2023/24 Main Estimates) are as follows:

Statement of comprehensive revenue and expense

The overall surplus for 2023/24 was $3.680 million, compared to a deficit of $8.833 million budgeted in the Main Estimates. Revenue was $14.918 million higher than the Main Estimates and expenditure was $2.405 million higher. The revenue and increases primarily reflect more work completed and more fees earned on audits of public organisations, including the audits of councils' long-term plans, carried out by audit service providers.

Audit New Zealand's direct expenditure also increased due to the recruitment of more employees to support the completion of audits.

Statement of financial position and Statement of changes in equity

Net assets at 30 June 2024 were $14.397 million more than the Main Estimates. This primarily reflects an actual surplus in the Audit and Assurance Services memorandum account asset compared with an anticipated deficit.

Assets at 30 June 2024 were $18.415 million higher than the Main Estimates. This reflects higher cash balances and receivables arising from more work completed and more fees earned from audits. The increase in our receivables has been partially offset by less software expenditure than anticipated on the Office's Information Systems Strategic Plan.

Liabilities at 30 June 2024 were $4.018 million higher than the Main Estimates. This reflects higher levels of income received in advance and the repayment of surplus to the Crown.