Annual Report 2011 / 12 - New Zealand Trade and Enterprise

NEW ZEALAND TRADE AND ENTERPRISE ANNUAL REPORT 2011/12 51
Note 26: Major budget variations
Explanation of major budget variations in the statement of financial performance, statement of financial
position, and statement of cash flows.
Revenue from the Crown operating is below budget due to lower costs incurred for the capability building
voucher programme which is only in its second year of implementation, the capital raising programme
development slower than planned, and lower New Zealand and international operating costs.
Revenue from the Crown – grants is below budget due to the impact of a reduced claim rate from previous
years’ grants approved. This also applies to the Grant expense.
Finance income is above budget due to the fair valuation of foreign exchnage derivative contracts due to be
used in the next financial year.
Personnel costs are below budget due to translating expenditure incurred overseas into New Zealand dollars
at a higher rate than the budget exchange rate, and lower staff numbers than planned.
Finance expenditure is above budget due to translating expenditure incurred overseas into New Zealand
dollars at a higher rate than the foreign exchange derivitives contracted exchange rates.
Other operating expenditure is below budget due to translating expenditure incurred overseas into
New Zealand dollars at a higher rate than the budget exchange rate, lower costs incurred for the capability
building voucher programme, the capital raising programme development slower than planned, and lower
New Zealand and international operating costs.
The total comprehensive income for the year arises from the fair value of foreign exchange derivatives
contracted for the 2012/13 financial year.
Cash and cash equivalents is below budget due to higher capital expenditure, and lower payables than
budgetd due to the timing of paying expenses incurred in the latter part of the financial year.
Crown debtor – grants non current assets , are higher than budget due to slower claim rate than planned. This
also applies to Provisions – Grants non-current liabilities.
Equity is below budget, due to the budget including a capital increase that has not been drawn down, and the
impact of the fair value of foreign exchange derivatives in the 2011 year end accounts, that was not included
in the budget because the budget was completed prior to the 2011 year end.
Reconciliation of output class costs to total expenses per Statement of Comprehensive Income
Output
class
2012
$000
Outputs
Standardised training and advisory services 1 11,949
Regional and sector development services 2 100,923
Analysis and development services for firms 3 30,397
Total output costs 143,269
Plus:
Grants income 30,428
Client income 297
Other operating income 2,129
Finance income 3,335
Other Crown income 100
Total Income 179,558
Plus
Foreign exchange gains / (losses) (2,805)
Total expenses per statement of comprehensive income 176,753
Note 27: Events after balance date
There were no significant events after balance date that required the financial
statements to be adjusted (2011: nil).