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Non-departmental Schedules and Statements : Vote Arts, Culture and Heritage and Vote Sport and Recreation for the year ended 30 June 2008

Non-departmental Schedules and Statements:
Vote Arts, Culture and Heritage and Vote Sport and Recreation for the Year Ended 30 June 2008

Reporting Entity

These non-departmental schedules and statements present financial information on public funds managed by the Ministry on behalf of the Crown.

These non-departmental balances are consolidated into the Financial Statements of the Government. For a full understanding of the Crown’s financial position, results of operations and cash flows for the year, reference should also be made to the Financial Statements of the Government for the year ended 30 June 2008.

Statement of Accounting Policies: Non-Departmental

The non-departmental schedules and statements have been prepared in accordance with the Government’s accounting policies as set out in the Financial Statements of the Government, and in accordance with relevant Treasury Instructions and Treasury Circulars.

Measurement and recognition rules applied in the preparation of these non-departmental schedules and statements are consistent with New Zealand generally accepted accounting practice, as appropriate for public benefit entities.

This is the first set of financial statements prepared using NZ IFRS. The comparatives for the year ended 30 June 2007 have been restated to NZ IFRS accordingly. Reconciliations of income and expenses and assets and liabilities for the year ended 30 June 2007 under NZ IFRS to the balances reported in the 30 June 2007 financial statements are detailed in note 3.

The accounting policies set out below have been applied consistently to all periods presented in these financial statements and in preparing an opening NZ IFRS statement of financial position as at 1 July 2006 for the purposes of the transition to NZ IFRS.

The following particular accounting policies have been applied:

Budget Figures

The budget figures are those included in the Ministry’s Statement of Intent for the year ended 30 June 2008, which are consistent with the financial information in the Main Estimates. In addition, these financial statements also present the updated budget information from the Supplementary Estimates.

Foreign Exchange

Foreign currency transactions are translated into New Zealand dollars using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the schedule of non-departmental income or expenses.

The Crown uses a foreign exchange forward contract to manage a foreign exchange exposure. The notional principal amount outstanding at balance date on the hedged purchase commitment with respect to the annual payment made to the Commonwealth War Graves Commission to maintain overseas war graves and memorials was $2.643 million (30 June 2007: 2.737 million).

Revenue

Revenue from fines and other receipts are recognised when received.

Grant Expenditure

Non-discretionary grants are those grants awarded if the grant application meets the specified criteria and are recognised as expenditure when an application that meets the specified criteria for the grant has been received.

Discretionary grants are those grants where the Ministry has no obligation to award on receipt of the grant application and are recognised as expenditure when approved by the grants approvals committee and the approval has been communicated to the applicant.

Goods and Services Tax

All items in the financial statements, including appropriation statements, are stated exclusive of GST, except for receivables and payables, which are stated on a GST inclusive basis. In accordance with Treasury instructions, GST is returned on revenue received on behalf of the Crown, where applicable. However, an input tax deduction is not claimed on non-departmental expenditure. Instead, the amount of GST applicable to non-departmental expenditure is recognised as a separate expense and eliminated against GST revenue on consolidation of the government’s financial statements.

Property, Plant and Equipment

Property, plant and equipment assets comprise the National War Memorial and the Massey War Memorial, administered on behalf of the Crown. These assets are carried at fair value less subsequent impairment losses and, for non-land assets, less subsequent accumulated depreciation. These assets are revalued at least every three years. In the intervening period between the scheduled revaluations if it is established that the memorial’s carrying value may be materially different from its fair value a revaluation will be sought.

Depreciation is charged on a straight-line basis at rates calculated to allocate the cost or valuation of an item of property, plant and equipment, less any estimated residual value, over its estimated useful life, as follows:

Buildings

 

2%

 


Updated on 23rd July 2015