G.10 (15)
2014/15
Annual Report
Pūrongo ā-Tau
Presented to the House of Representatives pursuant to
Section 44(1) of the Public Finance Act 1989
Contents
2
Chief Executive’s report – Tā te Tumuaki rīpoata
3
About the Ministry and the cultural sector – Mō te Manatū me te wāhanga tikanga
4
Outcomes Framework
5
Non-financial performance – Te Whakatutukitanga hāunga te tahua
6
Performance against the cultural sector outcomes – Te Whakatutukitanga ki ngā hua wāhanga tikanga
7
How we performed against our impacts – Tā mātou whakatutukitanga ki ā mātou papātanga
23
Service performance – Ngā Whakatutukitanga mahi
24
Policy Advice, Monitoring of Funded Agencies and Ministerial Servicing
29
Purchase Advice and Monitoring of Sport and Recreation Crown Entities
31
Heritage Services
40
Cultural Diplomacy International Programme
42
First World War Centenary
45
Effective and efficient delivery of our services – Te whakahaere tika i ā mātou ratonga
49
Financial statements – Ngā Tuhinga tahua
50
Statement of responsibility
51
Statement of comprehensive revenue and expense
52
Statement of financial position
53
Statement of changes in equity
54
Statement of cash flows
55
Statement of commitments
55
Statement of contingent liabilities and contingent assets
56
Notes to the financial statements
71
Non-departmental statements and schedules
71
Schedule of non-departmental revenue
72
Schedule of non-departmental expenses
73
Schedule of non-departmental assets
74
Schedule of non-departmental liabilities
75
Schedule of non-departmental contingent liabilities and contingent assets
76
Schedule of non-departmental commitments
77
Statement of trust monies
78
Notes to the non-departmental schedules and statements
85
Statement of departmental expenses and capital expenditure against appropriations
87
Details of departmental multi-year appropriation
88
Statement of departmental unappropriated expenditure and capital expenditure
88
Statement of departmental capital injections
89
Statement of non-departmental expenditure and capital expenditure against appropriations
93
Details of multi-year appropriations
96
Statement of non-departmental unappropriated expenditure and capital expenditure
97
Independent Auditor’s Report
Ministry for Culture and Heritage Annual Report 2014-15/ 1
Chief Executive’s report
Tā te Tumuaki rīpoata
Culture and heritage play a vital role in New Zealand society and economy. New Zealanders value
cultural activities highly and spend more on cultural items than they do on clothing and footwear,
healthcare or passenger transport. In the five years to 2014 GDP in the arts and culture sub-set
increased by 2.6 percent per annum compared with 1.6 percent per annum in the total economy.
Pukeahu National War Memorial Park opened in April 2015, and 50,000 people attended the first
national dawn service at the Park on Anzac Day. April also saw the opening of the Great War
Exhibition, which welcomed over 50,000 visitors in its first three months. The 2014-2019 WW100
Programme is well underway as the legacy project, the Ngā Tapuwae First World War Heritage
Trails, launched its Gallipoli content in March, ready for Anzac Day 2015. The project includes a
website, phone apps, signage and museum displays and there were 5,000 downloads of the Gallipoli
app in its first three months.
With the passage of the Heritage New Zealand Pouhere Taonga Bill into statute, the process of
establishing the first set of National Landmarks Listings is now underway. This will identify the most
iconic places to protect and promote.
With the support of the Cultural Diplomacy International Programme we’ve also showcased top New
Zealand music, theatre, kapa haka, literature and visual arts at a range of international events,
including the 2014 Edinburgh Festivals, the 2015 Taipei International Book Exhibition and in major
exhibitions in Santiago and Buenos Aires.
On 1 August 2014, the TVNZ archives were transferred to Ngā Taonga Sound & Vision to enable
better co-ordination of New Zealand’s wealth of audio-visual archives, with the aim of making them
more accessible to all New Zealanders.
The build of our highly regarded and successful website Te Ara – The Encyclopedia of New Zealand
has been completed with the launch of the theme Creative and Intellectual Life in October 2014. The
knowledge and expertise of staff working on this project have been noteworthy factors in its success.
We have experienced a digital surge with a 40 percent increase over the year in visits to Ministry
websites including Te Ara, NZHistory.net.nz and WW100. The Ministry received 11.2 million visitors
to its websites during the year.
Māori performing arts are going from strength to strength. There were more than 30,000 visitors to
Te Matatini’s 2015 Kapa Haka Festival with a direct economic impact of $9 million in Christchurch.
During 2014/15 the Ministry undertook a Performance Improvement Framework process. In
response, the Cultural Sector Strategic Framework forms the basis of our planning and engagement
with our partners.
The Ministry has worked well to deliver its wide range of programmes and activities. That a Ministry
of our size is able to achieve so much is a positive reflection on our ability to forge productive
partnerships and develop strong relationships with our funded agencies and the wider sector. It is
also achieved through the commitment and hard work of our staff.
Finally, I would like to thank outgoing Chief Executive Lewis Holden and interim Chief Executive
Helen Wyn for handing over a Ministry that is well placed and successfully delivering on its priorities.
Paul James
Chief Executive
Manatū Taonga / Ministry for Culture and Heritage
Ministry for Culture and Heritage Annual Report 2014-15/ 2
About the Ministry and the cultural sector
Mō te Manatū me te wāhanga tikanga
New Zealand’s distinctive culture enriches our lives
Our vision recognises that our distinctive culture is core to what makes New Zealand a great place
in which to live. Cultural expression, engagement and understanding are fundamental to a vibrant
and healthy society and help define what it is to be a New Zealander.
Māori culture makes New Zealand unique in a globalised world and is central to our sense of place,
identifying us as a nation. Active participation by Māori in distinct te ao Māori activity is important in
ensuring Māori culture is protected and flourishes.
Manatū Taonga / the Ministry for Culture and Heritage (the Ministry) is government’s leading adviser
on arts, heritage and media policy matters. We fund, monitor and support a range of cultural
agencies, and we deliver a range of high-quality cultural products and services.
The Ministry provides advice to government on where to focus its interventions in the cultural sector.
We seek to ensure that Vote funding is invested as effectively and efficiently as possible, and that
government priorities are met.
The Ministry has a strong track record of producing high-quality culture and heritage content
(including websites), managing New Zealand’s significant heritage and commemorations, and acting
as guardian of New Zealand’s culture and kaitiaki of New Zealand’s taonga. Our work prioritises
cultural outcomes and supports educational, economic and social outcomes, linking with the work of
a range of other government agencies.
Culture is created, produced and distributed by creative and innovative individuals, groups and
organisations. Cultural activities, goods and services have a value which is cultural, social and
economic - expanding individual capacities, helping bind society and providing jobs and innovation
in the economy. Access to world-class arts and culture inspires and enriches us as individuals and
a society.
Government makes a significant contribution to the broad cultural sector each year in order to ensure
that public value is realised and distributed for the benefit of everyone. In 2014/15, the Ministry
invested almost $400 million in arts, heritage, media and sport through Vote Arts, Culture and
Heritage and Vote Sport and Recreation. Additional support to the cultural sector is provided through
other public sources including the education sector and local government. The cultural sector
contributes to achieving positive outcomes across a wide range of other government portfolios
outside the sector. Inter-agency collaboration is making a number of large projects possible such as
the First World War Centenary (WW100) commemorations.
How we use the word “culture”
The Ministry uses the word “culture” in a broad way to include Māori culture and the cultures of
all New Zealanders. When we refer to culture we see it as including arts, heritage, media, and
sport and recreation.
What we include in the “cultural sector” and “funded agencies”
When this Annual Report document refers to the “cultural sector” we are referring to the mixed
(private and public) economy of producers, distributors, consumers and funders of cultural goods
and services. “Funded agencies” refers only to those agencies funded directly through the
Ministry under Vote Arts, Culture and Heritage and Vote Sport and Recreation.
Ministry for Culture and Heritage Annual Report 2014-15/ 3
Outcomes Framework
OUTCOMES FRAMEWORK
Government
priorities
Outcomes
for New
Zealand
A more competitive and
productive economy
A higher quality of life in
our communities, towns
and cities
Rebuild Christchurch
A growing workforce that drives
innovation, creativity and
collaboration
A culture that is
unique, distinctive
and valued in a
globalised world
New Zealand’s distinctive culture enriches our lives
Vision
Sector
outcomes
Better public services
Create
Preserve
Sector
priorities
Fostering
inclusive New
Zealand
identity
Ministry
impacts
Our histories,
taonga, places
and symbols of
nationhood are
preserved for
past, present
and future
generations
People
understand
and enjoy
New
Zealand’s
diverse
culture and
heritage
Ministry
outputs
Fund and
Monitor
 Performance
monitoring
and
development
of arts,
heritage,
media and
sport Votefunded
agencies
Advise
 Provide
advice to
support
decision
making by
Ministers on
government
policy
relating to
arts,
heritage and
media
 Ministerial
servicing
Supporting
Māori cultural
aspirations
Engage
Front footing
transformative
technology
Our culture
inspires
positive
changes in
communities,
the economy,
and the
environment
Excel
Improving
cultural asset
sustainability
New
Zealand’s
unique Māori
culture and
heritage is
protected
and
enhanced
Measuring
and
maximising
public value
A collaborative
cultural sector
strengthens
performance
and flexibility
Deliver
 Maintain war graves and
access to memorials and
other places of national
significance
 Collect and preserve oral
history and digital stories
 Promote cultural events and
significant commemorations
 Information on and
communications of New
Zealand and Māori history,
society and culture
 Delivery of international
cultural diplomacy projects
 Delivery of operating
activities relating to the First
World War centenary
commemorations
Regulate
 Administer
legislation
to protect
Māori and
New
Zealand’s
cultural
heritage
Ministry for Culture and Heritage Annual Report 2014-15/ 4
Ministry for Culture and Heritage Annual Report 2014-15/ 5
Non-financial Performance
Te Whakatutukitanga hāunga
te tahua
Performance against the cultural sector outcomes
Te Whakatutukitanga ki ngā hua wāhanga tikanga
This section of the annual report describes the Ministry’s performance against the cultural sector
goals and objectives (outcomes) for 2014/15.
The Ministry is uniquely placed in the cultural sector to have an overview of the full range of sector
activities and issues, and to inform thinking, within government and the sector, on how support for
culture can contribute to the Government’s goals.
Government funds a wide variety of cultural activity through Vote Arts, Culture and Heritage, and
Vote Sport and Recreation. The Ministry and our funded agencies are working together in a cohesive
and collaborative sector, while delivering in a diverse range of areas.
Our funded agencies are:
Ministry for Culture and Heritage Annual Report 2014-15/ 6
How we performed against our impacts
Tā mātou whakatutukitanga ki ā mātou papātanga
The following outlines the Ministry's performance against our desired impacts, showing the more direct
results of our activities which will contribute to each of our four outcomes. The Ministry has also
identified key indicators which will tell us whether our desired impacts have been achieved. The
Ministry’s outputs and supporting activities both directly and indirectly contribute to our outcomes. A
number of these also contribute across the arts, heritage, media and sport (cultural) sectors as the
Ministry’s activities are designed to encourage creation of, preservation of, engagement in, and
excellence in, cultural activities.
This section also identifies the outputs that relate to each of the impacts. The Ministry’s performance
against our output measures is reported in the Statement of Service Performance on pages 23 to 44.
In a year of fiscal constraint, the cultural sector faced the challenge of continuing to deliver within
existing resourcing levels. For the Ministry, one way of helping organisations meet this challenge was
to focus on efficiency, value for money and the potential for better collaboration.
Ministry for Culture and Heritage Annual Report 2014-15/ 7
Impact: Our histories, taonga, places and symbols of nationhood
are preserved for past, present and future generations
Impact measures
Initiatives – what we have been doing
 Histories and
taonga are
preserved for the
future.
 Developing policy to incentivise structural
upgrading of heritage buildings as part of the
review of the earthquake-prone building
provisions of the Building Act 2004 (led by the
Ministry of Business, Innovation and
 Histories, taonga,
Employment).
places and
symbols of
 Scoping a possible review of the Protected
nationhood
Objects Act 1975.
managed by the
 Collecting and preserving stories of cultural
Ministry are
importance to New Zealand.
increasingly
 Administering the annual New Zealand Oral
accessed.
History Awards.
 Maintaining war graves in New Zealand and
abroad, and upgrading the National War
Memorial.
 Completing Te Ara – The Encyclopedia of New
Zealand.
 Administering legislation to protect symbols of
nationhood and movable and found heritage.
Ministry outputs
 Provide advice to
support decision
making by Ministers on
government policy
matters relating to arts,
heritage and media.
 Collect and preserve
oral history and digital
stories.
 Administration of
legislation to protect
taonga Māori and New
Zealand cultural
heritage.
 Maintain war graves
and access to
memorials and other
places of national
significance.
 Delivery of the First
World War centenary
operating legacy
projects.
Histories and taonga are preserved for the future
The Ministry continues to increase the number of histories it records. The Ministry produced a book
based on oral history interviews recorded for the “Remembering Christchurch Oral History Project”
which will be published in September 2015. We have progressed three other oral history projects –
the “Treaty Settlement Stories Project” and commissioned projects for the Ministry for Primary
Industries and the Ministry of Foreign Affairs and Trade.
The Ministry will also continue to encourage the community to contribute images, stories, and
comments to our websites, including QuakeStories, 28th Māori Battalion, NZHistory, VietnamWar
and Te Ara.
Ministry for Culture and Heritage Annual Report 2014-15/ 8
Cumulative number of histories recorded by the Ministry since 1 July 2008
2,500
Number of histories
2,000
1,500
1,000
500
0
2009
2010
2011
2012
2013
2014
2015
Year
Histories, taonga, places and symbols of nationhood managed by the Ministry
are increasingly accessed
Developing policy to support strengthening of earthquake-prone heritage buildings
As part of the review of the earthquake-prone building provisions of the Building Act 2004 (led by the
Ministry of Business, Innovation and Employment), the Ministry has worked to develop policy options
and advice required to support the strengthening of earthquake-prone heritage buildings.
Websites
The Ministry produces a range of websites bringing New Zealand’s culture and heritage online.
These have proven to be an effective channel of communication to increase people’s understanding
of New Zealand’s heritage and culture. Over the past five years there has been a significant increase
in the number of visits to the Ministry’s websites. Total visits have increased from 3.7 million in
2008/09 to 11.2 million in 2013/14, representing an increase of nearly 203 percent. Total visits are
projected to be similar in 2015/16 due to the high interest in First World War material.
Ministry for Culture and Heritage Annual Report 2014-15/ 9
Total visits to Ministry websites
12,000,000
10,000,000
Total visits
8,000,000
Total
Te Ara
6,000,000
NZHistory
Manatū Taonga
Other
4,000,000
2,000,000
0
2009
2010
2011
2012
2013
2014
2015
Year
Other websites include – 28 Māori Battalion, Anzac Day, Vietnam War, NZ at Frankfurt, QuakeStories and WW100.
National War Memorial
New Zealand’s National War Memorial is located at Buckle Street in Wellington. The Memorial
commemorates all New Zealanders who gave their lives in the South African War, the two World
Wars, the conflicts in Malaysia and Vietnam, and on peace-keeping operations worldwide. The
National War Memorial features a Carillon, a Hall of Memories, and the Tomb of the Unknown
Warrior.
The primary goal of the Memorial is to help visitors remember and understand the New Zealand
experience of war and its enduring impact on New Zealand society. The Memorial was largely closed
from 2013 to 2015 for seismic strengthening and refurbishment. It re-opened in April 2015 and
experienced a large increase in visitors as people visited the new Pukeahu National War Memorial
Park.
Public talks
The Ministry arranged nine public talks during 2014/15 on subjects ranging from war history and
the economy, to Māori and the Pacific. Average attendance was around 50 to 60 people (2013/14:
50-60 people). The Ministry plans to hold the same number of talks in 2015/16, subject to suitable
space being available.
Ministry for Culture and Heritage Annual Report 2014-15/ 10
Impact: People understand and enjoy New Zealand’s diverse culture
and heritage
Impact measures
Initiatives – what we have been doing
Ministry outputs
 Knowledge and
understanding of
the First World
War and the
impact it had on
New Zealand
and New
Zealanders
increases.
 Providing historical and cultural information that
engages New Zealanders and international
audiences.
 Promotion of
cultural events
and significant
commemorations.
 New Zealanders
who access
Ministry
information feel
informed about
their country,
history and
culture.
 Producing and promoting significant cultural and
historical resources and events, including First
World War centenary commemorative digital and
print projects.
 Raising public awareness and understanding of the
First World War Centenary programme, through key
commemorative events in August 2014 (to mark
New Zealand’s entry into the war) and Anzac Day
2015 that were well attended by thousands of New
Zealanders.
 Progressing New Zealand’s First World War
centenary commemorations projects, including
completing Pukeahu National War Memorial Park.
 Coordinating government involvement in the 175th
commemorations of the signing of the Treaty of
Waitangi.
 Collect and
preserve oral
history and digital
stories.
 Produce and
promote cultural
and historical
resources.
 Provide advice to
support decision
making by
Ministers on
government policy
matters relating to
arts, heritage and
media.
 Providing advice on policy, legislation and funding to
Delivery of the
enhance the development of cultural sector services 
First World War
and activities, including visual, performing and
centenary
literary arts, historic heritage, museum collections,
operating legacy
taonga and whare taonga, cultural tourism,
projects.
broadcasting and media standards.
 Leading development of a framework to support
cross-government initiatives that promote inclusive
New Zealand identity.
Knowledge and understanding of the First World War and the impact it had on
New Zealand and New Zealanders increases
A nationwide online survey of New Zealanders’ attitudes and beliefs about the First World War was
conducted in November/December 2012. A total of 4,017 responses were received from New
Zealanders aged 15 years and over. The sample was representative of the New Zealand population
aged over 15 by region, age, gender, and ethnicity. The survey measured respondents’ understanding
of the First World War, and their attitudes and preferences for commemorating the centenary of the
First World War.
The survey results indicated that, on a self-report basis:

2.4% of respondents had never heard of the First World War.

15.7% of respondents had no real knowledge of the First World War.

48.9% of respondents had a basic understanding of the First World War.
Ministry for Culture and Heritage Annual Report 2014-15/ 11

24.9% of respondents had a reasonable understanding of the First World War.

6.9% of respondents had a reasonably advanced understanding of the First World War.

1.2% of respondents had an expert knowledge of the First World War, including its causes, the
reason for New Zealand’s involvement, and the campaigns and major battles fought by New
Zealanders.
This survey establishes a baseline understanding from which to measure the impact of the First World
War Centenary Programme. A follow-up survey will be conducted at the completion of the centenary
period (2019). The Programme aims to increase the percentage of respondents who indicate that they
have a reasonable, or reasonably advanced, level of understanding about the First World War at the
end of the centenary period. A similar approach has been taken in both Australia and the United
Kingdom.
First World War centenary projects
An important piece of work for the Ministry during 2014/15 was to provide
strategic leadership of New Zealand’s commemorations of the First World
War Centenary (WW100). ‘WW100' is a shared identity for New Zealand
First World War centenary projects and activities, from official state
ceremonies and legacy projects to community initiatives and personal
projects. The WW100 Programme office is a partnership between this
Ministry, New Zealand Defence Force (NZDF), the Ministry of Foreign
Affairs (MFAT) and Trade, and the Department of Internal Affairs (DIA).
The objectives for the WW100 programme are to:

commemorate New Zealanders’ service and sacrifice in the First World War

explore how New Zealanders’ war experiences helped to shape our distinct and evolving
national identity and aspirations

highlight New Zealand’s enduring commitment to peace, global security and international
cooperation

strengthen New Zealand’s bilateral relationships with Australia and all other participants in the
First World War

deepen understanding of the First World War by telling and preserving stories about New
Zealanders’ war experiences at home and abroad

provide a living legacy of the war’s impacts and on-going significance, so current and future
generations are more informed.
The WW100 programme enables a strategic approach to commemorating the war and means that
the very larger amount of activity that is happening outside central government is occurring within a
coherent and supported framework. A key focus for the programme this year was the
commemoration of the outbreak of war in August 2014, and the centenary of the Gallipoli landings
on Anzac Day 2015.
Anzac Day 2015
Tens of thousands of New Zealanders turned out to commemorate Anzac Day this year, throughout
New Zealand. The WW100 Programme office supported local councils and groups planning
commemorative events by providing materials, media releases, images and historical information to
plan their commemorative events.
At a national level, the first ever national dawn service at the newly opened Pukeahu National War
Memorial Park was attended by over 40,000 people, who gathered to mark the Gallipoli centenary.
This unique event was developed by a multi-agency partnership, which included the Department of
the Prime Minister and Cabinet, the Visits and Ceremonial Office, the Ministry of Foreign Affairs and
Trade and the New Zealand Defence Force, as well as Wellington City Council and the Wellington
Tenths Trust. For the first time ever, the Governor-General of Australia, HE Sir Peter Cosgrove
Ministry for Culture and Heritage Annual Report 2014-15/ 12
participated in New Zealand’s Anzac commemorations, laying a wreath alongside our own GovernorGeneral at this dawn service. New Zealand’s Governor-General also joined HE Sir Peter Cosgrove
at the sunset Last Post ceremony in Canberra. The dawn service, and the nationwide coverage it
received, enabled the Ministry to position key messages about New Zealand’s diverse culture and
First World War heritage.
After the dawn service, the formal national service was held at Pukeahu at 11am; this was attended
by approximately 3,000 people, in addition to over 70 international representatives. The same multiagency partnership was involved in developing this service. Anzac Day national events concluded
with a Beat-the-Retreat ceremony at Pukeahu in the early evening.
Walking with an Anzac
‘Walking with an Anzac’ is a WW100 educational resource, which includes school visits, online
resources and a Tumblr site for schools to share their ideas. ‘Walking with an Anzac’ featured on
front page of Apple’s ITunesU, under the Gallipoli resource collection, in the lead up to Anzac Day.
The resource proved very popular and was the top download for both the individual lessons and the
full collection in April.
Online Cenotaph
The Ministry contributed to the development of Auckland War Memorial Museum's enhanced Online
Cenotaph website. This provides a digital space where individuals and families can research the
military records of those who served during the First World War. The WW100 website has promoted
use of this during the period of the Gallipoli campaign by publishing a daily roll of honour to those
who died at Gallipoli on that day, with direct links to the individual’s entry on the Cenotaph database.
First World War Centenary Print History
The Ministry’s First World War research and publishing programme has continued to grow. The
Ministry is partnering with Massey University, the New Zealand Defence Force and the RNZRSA to
produce 12 to 13 print histories by 2018. The Ministry is responsible for six of these and three have
been published to date:

New Zealand and the First World War, Damien Fenton with Caroline Lord, Gavin McLean and
Tim Shoebridge. Published by Penguin, October 2013. This was reprinted in February 2014
after selling out its first 5000-copy print run.

The White Ships: New Zealand’s First World War Hospital Ships, Gavin McLean. Published by
NZ Ship & Marine Society, October 2013.

New Zealand’s First World War Heritage, Imelda Bargas and Tim Shoebridge. Published by
Exisle Publishing, April 2015.
Three more are in progress:

The Western Front, Ian McGibbon. To be published September 2016.

Māori and the First World War, Monty Soutar. To be published April 2017.

New Zealand and the First World War at Sea, Gavin McLean. To be published 2017.
These further projects are not part of the Centenary History print programme but present First World
War content:

Battlefield guides reissues – Ian McGibbon’s guides to battlefields and sites of the Western Front
(2001) and Gallipoli (2004) have been updated and reissued by Penguin.

Gallipoli's Landscape of War and Memory – Ian McGibbon has contributed to this Australian
book, to be published late 2015.

Penguin Book of New Zealand War Writing – Ministry historian Gavin McLean has co-edited this
work with Professor Harry Ricketts. It is due out in October 2015.

The Sorrow and the Pride reissue – the Ministry is supporting Jock Phillips and Chris Maclean
to produce an updated version of The Sorrow and the Pride, a book on war memorials (1990).
This will be published in early 2016.
Ministry for Culture and Heritage Annual Report 2014-15/ 13
Other projects include:

Firstworldwar.govt.nz, sub-site of NZHistory.net.nz – this currently presents 53 First World War
web features. New content continues to be added, with a particular current focus on the ‘home
front’ experience. A series of features have been commissioned by NZ Post and State Services
Commission on aspects of the public service at war.

‘Great War Stories’ – the Ministry supported two series of short (3-minute) films, which screened
as part of TV3 News in August 2014 and April 2015. It is likely that two more series will be made
for screening in 2016 and 2017. The films are hosted on Firstworldwar.govt.nz

‘The War News’ – the Ministry provided historical advice to this 5-part Gibson Group
documentary series, which screened on Prime TV in 2014

‘Facing the Front’ exhibition – the Ministry curated this exhibition of First World War-related
portraits at the NZ Portrait Gallery in Wellington in mid-2014

First World War conferences – in August 2014 the Ministry supported the academic conference:
Experience of a Lifetime at Massey University, Wellington. The proceedings will be published in
2016.
Lottery Grants
In July 2014 the New Zealand Lottery Grants Board allocated a further $5 million to support the
community’s involvement in the First World War centenary programme. The WW100 Programme
Office worked with the Lottery Grants Board and Department of Internal Affairs in assessing
applications for funding against the WW100 programme’s objectives.
During 2014/15 38 applications were funded, totalling $5 million. The grants were awarded for a
range of initiatives including the restoration of local war memorials, new musical and theatrical
compositions, planned additions to the Great War Exhibition, and for research and production of key
volumes of the Centenary History print programme.
In addition, the Lottery Grants Board provided Creative New Zealand with seed funding of $1.5
million to establish the First World War Centenary Co-Commissioning Fund. By June 2015 grants
totalling $1,180,443 had been awarded; the fourth and final funding round closes in November 2015.
Pukeahu National War Memorial Park
Knowledge and understanding of the First World War and its impact on New Zealand will be
enhanced by Pukeahu National War Memorial Park. A whakawātea organised in partnership with
the Wellington Tenths Trust and Palmerston North Māori Reserve Trust was held for Pukeahu
National War Memorial Park in March 2015 and the Park was formally opened on 18 April 2015.
The vision for Pukeahu is that it will be the national place for New Zealanders to remember and
reflect on this country’s experience of war, military conflict and peacekeeping, and how that
experience shapes our ideals and sense of national identity. Visitors to the Park will be engaged
through onsite and online material.
The Australian Memorial was opened in April 2015. Plans for memorials from Turkey, the United
Kingdom, the United States of America, France, Belgium and Canada are in progress, and we expect
these memorials will be installed and dedicated over the next four years.
Total visitors to the Park and the National War Memorial are up from previous years (10-15,000 per
annum), with thousands of visitors each week now; since Anzac Day upwards of 40,000 people have
visited Pukeahu.
Ministry for Culture and Heritage Annual Report 2014-15/ 14
New Zealanders who access Ministry information and places the Ministry
manages feel informed about their country, history and culture
In 2015, a survey of the Ministry’s website users was conducted to gain feedback about our websites
and identify areas of development to be included in our programme of work. As part of this survey, we
asked users how well informed they were about a variety of subjects. We also asked them how well
informed they felt about New Zealand, its history, and its culture after using our websites, on a scale
of not informed, somewhat informed, better informed, and extremely well informed.
After viewing our websites, 76 percent (2014: 89.8 percent) of respondents felt at least ‘somewhat
more’ informed about New Zealand, its history and its culture, with 50 percent (2014: 60.6 percent) of
respondents feeling ‘much more’ informed. In the previous two surveys we asked whether respondents
felt they were either ‘better’ or ‘extremely’ well informed.
While these trends are declining, this could reflect that the strong user base (who are more likely to
respond to the survey) already feel well-informed. The Ministry will look at exploring this with user focus
groups in 2015/16.
Ministry for Culture and Heritage Annual Report 2014-15/ 15
Impact: Our culture inspires positive changes in communities, the
economy, and the environment
Impact measures
Initiatives – what we have been doing
 Participation in
 Provideing advice on policy, funding and other
sport, arts,
opportunities to enhance the contribution of the
recreation and
cultural sector to the Government’s wider social and
culture at all levels
economic goals.
occurs across all
 Supporting the recovery from the Canterbury
of greater
earthquakes by contributing to a range of cultural
Christchurch.
initiatives in greater Christchurch.
 Overseeing implementation of the Arts and Culture
and the Heritage Buildings and Places Recovery
Programmes for Greater Christchurch.
 Convening the cultural sector Joint-Agency Group
(JAG) in Christchurch to ensure there is regular
information-sharing, consistent advice to key
stakeholders, and alignment of funding streams
around agreed priority projects.
Ministry outputs
 Provide advice
to support
decision making
by Ministers on
government
policy matters
relating to arts,
heritage and
media.
 Delivery of
international
cultural
diplomacy
projects.
Participation in sport, arts, recreation and culture at all levels occurs across all
of greater Christchurch
Creative New Zealand published the results of two surveys measuring New Zealanders’ engagement
with the arts in 2014. New Zealanders and the Arts is a three-yearly survey which measures the
attendance, participation and attitudes towards the arts of New Zealanders and young New
Zealanders (10-14 year olds), and the Audience Atlas New Zealand 2014 measures trends in
audience engagement with arts and cultural activities by audience segment.
The New Zealanders and the Arts survey found that the 2011 earthquakes continue to limit
Christchurch residents’ attendance and participation in the arts. However, there has been a marked
increase in both areas since 2011. In 2014, 68 percent said they are actively involved in the arts just
as much as prior to the earthquakes, compared to 58 percent in 2011. 41 percent say they attend
the arts just as much as prior to the earthquakes, compared to just 25 percent in 2011.
The Audience Atlas New Zealand 2014 survey showed that Canterbury was one of the most
culturally active areas in New Zealand, along with Waikato and Nelson, with 99% percent of people
having attended a cultural event or location in the past three years. This represents an 8 percent
increase from 2011, when Canterbury had the second lowest attendance surveyed.
In 2007/081 Sport New Zealand conducted its Active New Zealand Survey, which collects data on
sport and recreation participation by New Zealand adults aged 16 years and over.
In 2007/08, 75 percent of adults in Greater Christchurch took part in at least one sport or recreation
activity (excluding gardening) per week. Over a 12 month period, 79 percent of adults participated
in at least two different types of sport and recreation activities, and, on average, adults participated
in 4.4 different sport and recreation activities2.
1
2007/08 data is used as our baseline for participation in sport and recreation in the Greater Christchurch region.
2
This data has been updated for changes in measurement methodology and to allow for more accurate comparison with the latest
survey results.
Ministry for Culture and Heritage Annual Report 2014-15/ 16
In 2014/15, Sport New Zealand conducted its latest Active New Zealand Survey. The comparable
results are:
 83 percent of adults in Greater Christchurch took part in at least one sport or recreation
activity (excluding gardening) per week (a 7.7 percentage point increase)

82 percent participated in at least two different types of activities over a 12 month period (a
3.0 percentage point increase)

On average, over a 12 month period adults participated in 4.3 different activities (similar to
the 2007/08 results)
As Sport New Zealand data was not available in the period preceding the earthquakes, it is not
possible to assess the true impact of the earthquakes on participation in sport and recreation in
Greater Christchurch.
Sport New Zealand conducted its baseline Young People’s Survey in 2011 asking young people
about their participation in sport and active recreation.
For Greater Christchurch, results show that:

over 6 out of 10 (64 percent) young people in the region spent 3+ hours a week on informal
sport and recreation

over 5 out of 10 (55 percent) young people in the region spent 3+ hours a week on organised
sport and recreation.
The Young People’s Survey will be undertaken again in the next strategic plan period (2015-2020).
The exact timing of the survey is yet to be determined.
Ministry for Culture and Heritage Annual Report 2014-15/ 17
Impact: New Zealand’s unique Māori culture and heritage is
protected and enhanced
Impact measures
Initiatives – what we have been doing
Ministry outputs
 People who
access Ministry
information about
the Treaty
settlement
process are
better informed
about the
benefits of the
Treaty settlement
process for all
New Zealanders.
 Producing digital and print publications which
showcase Māori culture, history, and language,
including the history of Māori in the First World
War and the 28th Māori Battalion in the Second
World War.
 Provide advice to
support decision
making by Ministers on
government policy
matters relating to arts,
heritage and media.
 Negotiating Treaty settlement iwi protocols.
 Advancing Treaty Settlement Stories oral
history, print, and digital projects.
 Co-ordinating wānanga, to assure the quality of
content across the Ministry’s cultural
publications.
 Māori and New
 Providing advice on policy, legislation and
Zealanders who
funding to enhance the development of Māori
access Ministry
culture and heritage.
information feel
taonga are better  Providing guidance to Māori on cultural
planning to support achievement of Māori
cared for and
cultural aspirations post-settlement.
managed.
 Collect and preserve
oral history and digital
stories.
 Produce and promote
cultural and historical
resources and events.
 Administration of
legislation to protect
taonga Māori and New
Zealand cultural
heritage.
 Encouraging the use of and access to te reo in
the work and workplaces of agencies funded
through the Ministry.
People who access Ministry information about the Treaty settlement process are
better informed about the Treaty Settlement process for the management and
protection of Māori culture and heritage
From July 2014 to 30 June 2015, the Ministry negotiated and agreed 20 relationship agreement
protocols with individual iwi. Overall the Ministry has signed 38 protocols.
The Ministry has developed its Treaty Settlement Stories project and will be producing oral histories of
the Treaty settlement process, as well as other Treaty settlement digital projects.
The Ministry already has some information on Treaty settlements on existing websites and our website
survey asks respondents how well this content informs them about the Treaty settlement process, on
a scale of not informed, somewhat informed, well informed, and extremely well informed.
The responses received in June 2015 show that 39 percent (2014: 37.6 percent) of respondents
consider that they are well informed or extremely well informed, and 68 percent (2014: 82.8 percent)
considered the content made them at least somewhat informed 15% said they had no opinion.
Ministry for Culture and Heritage Annual Report 2014-15/ 18
Māori and New Zealanders who access Ministry information feel taonga are
better cared for and managed
The Ministry is responsible for managing taonga under the Protected Objects Act 1975, which
regulates the export of protected New Zealand objects, the illegal export and import of protected New
Zealand and foreign objects, and the sale, trade and ownership of taonga tūturu, including what to
do if you find a taonga or Māori artefact.
Our work in this area ensures significant movable heritage subject to the Protected Objects Act is not
lost overseas.
In 2015, the Ministry conducted a survey asking respondents whether they considered that taonga
Māori are being properly cared for in New Zealand, using a scale of yes, no, or no opinion.
In June 2015, 26 percent of respondents said ‘yes’ they felt taonga were being properly cared for in
New Zealand. 31 percent said ‘no’ and 42 percent responded with ‘no opinion’.
Ministry for Culture and Heritage Annual Report 2014-15/ 19
Impact: A collaborative cultural sector strengthens performance and
flexibility
Impact
measures
 Level of
private or
philanthropic
giving to arts
and heritage
organisations.
 Collaboration
between
funded
agencies, and
between the
Ministry and
the funded
agencies, to
achieve
cultural and
government
outcomes.
Initiatives – what we have been doing
Ministry outputs
 Developing a strategy to frame and drive the
Government’s investments in New Zealand’s
culture.
 Provide advice to
support decision
making by Ministers
on government
policy matters
relating to arts,
heritage and media.
 Providing advice on policy, legislation, and funding
to enhance sector coherence and infrastructure.
 Supporting the Heritage Forum to identify and
manage priority work across the heritage sector.
 Improving funded agencies’ strategic planning and
performance reporting frameworks through
collaboration and support.
 Advising on mechanisms for sustaining the
performance and financial strength of key cultural
sector agencies, through agency cooperation and
development of shared service arrangements, and
assisting the cultural sector to diversify revenues.
 Undertaking reviews and making improvements in
cultural areas, including the Protected Objects Act
1975 review, commemorations review and use of
creative commons.
 Working with key agencies to increase levels of
private and philanthropic giving in the wider cultural
sector.
 Performance
monitoring and
development of arts,
heritage, media and
sport Vote-funded
agencies.
 Advice on and
processing of arts,
heritage, media and
sport board
appointments.
 Negotiated services
to support Ministers
including speeches
and
correspondence.
 Advising on the appointment of Board members for
Crown-connected agencies.
 Advising on and administering legislation for the
cultural Crown entities.
Level of private or philanthropic giving to arts and heritage organisations
The Ministry published the results of its second Giving and Sponsorship survey of the cultural sector
in December 2014.
Over 800 cultural organisations responded. Key findings include the following:
 Overall 83 percent of total funding support came from central and local government and the Lottery
Grants Board and 17 percent from private sector sponsorship and philanthropy.
 Organisations were nearly twice as likely to seek support from individuals, couples and families (60
percent), and trusts and foundations (59 percent) than from corporations (32 percent).
 Less than 20 percent of organisations had at least one employee whose primary responsibility it is
to fundraise and manage relationships with funders.
 Nearly one third of organisations said that increasing or retaining staff who do this work would have
the greatest positive impact on improving fundraising capability.
 Only 52 percent of organisations have a list of current or potential supporters.
The report has been disseminated to cultural sector organisations to help inform their fundraising and
Ministry for Culture and Heritage Annual Report 2014-15/ 20
sponsorship strategies. The findings are also informing the Minstry’s ongoing work to encourage
cultural philanthropy in New Zealand.
Tapping into new streams of private sector support:

From 2012 to 2015 Creative New Zealand invested $1.1 million in Creative Giving, a threeyear pilot fundraising capability building initiative. Of this $700,000 was provided in matched
funding to arts or cultural organisations which had successfully raised private funds. The ASB
Community Trust also partnered with Creative Giving and offered $200,000 towards
organisational infrastructure for fundraising.

The Arts Foundation launched its crowd funding website Boosted in April 2013. In the two years
to April 2015 it has raised over $1 million through the support of 6000+ donors who have
donated to 170 arts projects.
Collaboration between funded agencies, and between the Ministry and the
funded agencies, to achieve cultural and government outcomes
The Government’s ongoing commitment to better public services necessitates greater collaboration
across the cultural sector and between funded agencies in particular. The Ministry has worked with
funded agencies over the past year to identify further opportunities for collaboration and continues its
commitment to enhancing the performance of the public sector. In light of this and the constrained
fiscal environment, the Ministry has worked with cultural sector organisations to improve coordination
across the sector.
This year the Ministry has changed the way in which we measure collaboration. While previously we
have counted the number of collaborative arrangements in place between agencies, this year we will
be highlighting notable examples. This is a better representation of our increasing impact on a
collaborative cultural sector. Counting our collaborative arrangements does not provide enough
context, and the number of collaborative arrangements is expected to decrease as greater efficiencies
are established and multiple arrangements are consolidated into one arrangement. This impact
measure will be discontinued going into 2015/16.
Funded agencies collaborated in new and innovative ways during the year to save costs and/or
improve effectiveness. Some notable examples include:

The Ministry and Creative New Zealand jointly developed a framework to monitor the outcomes of
the New Zealand Professional Orchestra Review (completed in 2013) and reached agreement with
the orchestras on the measures and targets they will report against once the Review is
implemented.

NZ On Air and the Broadcasting Standards Authority commissioned Colmar Brunton in late 2014
to carry out a comprehensive face-to-face survey of more than 700 children aged six to14 and their
parents about the media consumption of children. This research provided unique insights into
children’s media consumption, audience behaviours and attitudes to content which directly benefits
both organisations.

The Contemporary Popular Music Group, comprising NZ On Air, the New Zealand Music
Commission, Creative New Zealand and Te Māngai Pāho, agreed to the first inter-agency music
strategy during 2014/15. This will help these agencies take a joined-up approach to supporting
and promoting New Zealand popular music.

The New Zealand Film Commission and NZ On Air agreed to fund three feature-length
documentaries as part of Screen New Zealand’s first funding initiative, called Doc Connect. The
New Zealand Film Commission, NZ On Air and Film New Zealand established the virtual agency
Screen New Zealand in 2013 to work together in the interests of the screen sector.

The New Zealand Symphony Orchestra contributed to the soundscape for the exhibition ‘Gallipoli:
The Scale of Our War’ which was developed by Te Papa, working closely with Weta Workshop,
and opened at Te Papa in April 2015. Ngā Taonga Sound and Vision also supported Te Papa’s
Gallipoli exhibition (and other First World War exhibitions) by providing moving image and sound
material from its collections.
Ministry for Culture and Heritage Annual Report 2014-15/ 21

Ngā Taonga is assisting Te Papa with the safe storage of its nitrate collection of photographic
negatives at Ngā Taonga’s Whitireia storage facility.

During 2014, the New Zealand Symphony Orchestra recorded eleven works for broadcast by ten
New Zealand composers. This is a long-running initiative with SOUNZ (the Centre for New
Zealand Music) in association with Radio New Zealand.

In late 2014, Ngā Taonga’s travelling film show partnered with Heritage New Zealand Pouhere
Taonga to present Te Waipounamu Marae Film Tour - Ōtautahi ki Awarua. The programme
comprised over 20 films celebrating Ngāi Tahu history, and screened in seven local marae across
the South Island. The films, made between 1910 and 2008, featured Ngāi Tahu people, land and
traditions.

Auckland-based office staff of the Royal New Zealand Ballet joined the Creative New Zealand
Auckland office to save costs and provide access to better facilities and communal spaces.
Heritage Forum
The Government has indicated a need for closer integration between public agencies and a more
coherent approach to policy development. In 2011/12, the Ministry established the Heritage Forum
to forge stronger links and more coherence between government heritage agencies and across the
sector, and to be a visible presence promoting heritage interests at a national level.
In 2013/14 the Ministry reviewed the Forum’s operations and concluded that a different focus was
needed. In 2014/15 the Ministry started work on developing two Sector Reference Groups that could
broaden sector engagement and deliver projects that would support the Forum’s strategic
programme for future years.
Legislative change for the cultural sector
During 2014/15 the Ministry progressed a number of proposals for legislative change in the cultural
sector.
The Waitangi National Trust Board Amendment Bill was considered by the Māori Affairs Select
Committee and progressed through its Second Reading. The Bill addresses a potential conflict
between the constitutional and trusteeship roles of the Governor-General and Ministers as ex
officio members of the Waitangi National Trust Board. The Bill also provides for the Trust Deed and
the Waitangi National Trust Board Act 1932 to provide fixed terms of appointment for Board
members.
The Radio New Zealand Amendment Bill also completed its Second Reading. The key purpose of
this Bill is to provide for a new Radio New Zealand Charter, which results from a Parliamentary
review required by the Act.
The Ministry provided advice to the Local Government and Environment Select Committee on the
Arts Centre of Christchurch Trust Bill, which was enacted on 5 June 2015. The Arts Centre of
Christchurch Trust Act 2015 provides the legal foundations for the Trust Board to continue to be
able to respond to damage from the 2010 and 2011 earthquakes, by updating and modernising the
governance arrangements of the trust board and enshrining the various objects of the trust in
legislation.
The Ministry contributed to work on the New Zealand Flag Referendums Bill, for which the Ministry
of Justice is the lead agency. The Bill includes implementation provisions that would amend the
Flags, Emblems, and Names Protection Act 1981, if voters in the second referendum on the New
Zealand flag vote in favour of changing the flag. The Bill was referred to the Justice and Electoral
Committee in March 2015.
Ministry for Culture and Heritage Annual Report 2014-15/ 22
Service Performance
Ngā Whakatutukitanga mahi
Ministry for Culture and Heritage Annual Report 2014-15/ 23
Vote Arts Culture and Heritage
Policy Advice, Monitoring of Funded Agencies and Ministerial Servicing
Scope
Policy advice
The provision of advice to support decision-making by Ministers on government policy matters relating
to arts, culture, heritage and broadcasting.
Monitoring of funded agencies
Monitoring the Crown’s interests in sector agencies.
Ministerial servicing
Providing negotiated services to the Minister for Arts, Culture and Heritage and the Minister of
Broadcasting.
What we delivered
This output expense supports our achievement of our outcomes and impacts set out above. This output
contributes to the following impacts:

Our histories, taonga, places and symbols of nationhood are preserved for past, present and future
generations.

People understand and enjoy New Zealand’s diverse culture and heritage.

Our culture inspires positive changes in communities, the economy, and the environment.

New Zealand’s unique Māori culture and heritage is protected and enhanced.

A joined-up cultural sector strengthens performance and flexibility
During 2014/15, we have:

Provided advice on policy, legislation and funding to enhance the development of cultural sector
services and activities, including visual, performing and literary arts, historic heritage, museum
collections, taonga and whare taonga, cultural tourism, broadcasting and media standards.

Provided advice on policy, funding, and other opportunities to enhance the contribution of the
cultural sector to the Government’s wider social and economic goals.

Developed a strategy to frame and drive the Government’s investments in New Zealand’s culture
in the medium term.

Provided advice on policy, legislation, and funding to enhance sector coherence and infrastructure.

Worked with key agencies to increase levels of private and philanthropic giving in the wider cultural
sector.

Provided advice on policy, legislation and funding to enhance the development of Māori culture
and heritage, including researching and advising on approaches to whare taonga initiatives.

Worked with Auckland Council to develop and implement an arts and culture strategy for Auckland.

Supported the recovery from the Canterbury earthquakes by contributing to a range of cultural
initiatives in greater Christchurch.

Developed policy to incentivise structural upgrading of heritage buildings as part of the review of
the earthquake-prone building provisions of the Building Act 2004 (led by the Ministry of Business,
Innovation and Employment).
Ministry for Culture and Heritage Annual Report 2014-15/ 24

Supported an Auckland-based Sistema Aotearoa project and advised on options for support of
similar projects in other parts of New Zealand.

Facilitated co-production agreements, in particular, with Poland and Israel.

Completed the one year review of the New Zealand Screen Production Review in collaboration
with the Ministry of Business Innovation and Employment.

Improved funded agencies’ strategic planning and performance reporting frameworks through
collaboration and support.

Advised on mechanisms for sustaining the performance and financial strength of key cultural sector
agencies, through agency cooperation and assisting the cultural sector to diversify revenues.

Advised on the appointment of board members for Crown-connected agencies.

Advised on and administered legislation for the cultural Crown entities.
How well we delivered it
This section provides an assessment of our delivery against the performance measures set out in the
Information Supporting the Estimates for 2014/15.
Policy Advice, Monitoring of Funded Agencies and Ministerial Services
Actual
performance
2014
Budget
standard
2015
Actual
performance
2015
80%
80%
60%
Actual
performance
2014
Budget
standard
2015
Actual
performance
2015
277
250
220
The quality of written policy papers to the
Vote Ministers, as assessed by an
external independent reviewer on an
annual basis
70%
75%
76%
Ministerial satisfaction with the quality and
timeliness of advice
82%
80%
60%
$83.41
$100.00
$79.86
Actual
performance
2014
Budget
standard
2015
Actual
performance
2015
Performance measures
Ministerial satisfaction with the quality and
timeliness of policy advice, monitoring of
funded agencies and ministerial services
Policy advice
Performance measures
Number of briefings, reports and other
updates provided to Vote Ministers
Cost per output hour*
Monitoring of funded agencies
Performance measures
Ministry for Culture and Heritage Annual Report 2014-15/ 25
Number of briefings, reports and other
updates provided to Vote Ministers
141
120
189
82%
80%
60%
Actual
performance
2014
Budget
standard
2015
Actual
performance
2015
86%
85%
60%
93.91%
100%
97.84%
847
1,000
911
Number of new appointments to Crownconnected Boards
41
22
17
Number of reappointments to Crownconnected Boards
20
13
26
Ministerial satisfaction with the quality and
timeliness of performance advice is
consistently high
Ministerial servicing
Performance measures
Ministerial satisfaction with the quality and
timeliness of correspondence
All timeframes for Ministerial
correspondence replies, Parliamentary
question responses, and Ministerial
Official Information Act requests are met
Number of draft ministerial
correspondence, replies to the house, and
sets of speech notes provided to the Vote
Ministers
Number of briefings, reports and other updates
Advice was provided on:
Policy advice
Monitoring of funded agencies
Ministerial servicing
220
189
917
The number of briefings, reports and other updates provided to Vote Ministers is demand driven.
Timeframes for replies
The timeframes for Ministerial replies did not meet the budgeted standard of 100 percent due to a
change in staff resources during the financial year.
Quality of written policy papers
In addition to seeking responses from Ministers, as reported in our Ministerial satisfaction results
below, the NZIER undertook an assessment of the quality of a sample of policy papers, providing an
overall rating of 76 percent.
Ministerial satisfaction 2014/15
Ministry for Culture and Heritage Annual Report 2014-15/ 26
No feedback was received from the Minister for Arts, Culture and Heritage. The feedback from the
Minister of Broadcasting is reflected in the results.
Board appointments and reappointments
Portfolio
ACH
Broadcasting
Sport & Rec
Eden Park Trust
Board (Associate
Minister for Sport
and Recreation)
Number of
Appointments
6
2
6
3
Number of
Reappointments
15
2
3
3
Ministry for Culture and Heritage Annual Report 2014-15/ 27
Financial performance
Policy Advice
Actual 2014
$000
Budget*
2015
$000
Revised
Budget*
2015
$000
2,958
2,931
3,261
3,261
Revenue other
81
-
21
49
Total revenue
3,039
2,931
3,282
3,310
Total expenses
2,982
2,931
3,282
3,011
57
-
-
Revenue Crown
Surplus/(deficit)
Actual
2015
$000
299
Monitoring of Funded Agencies
Actual 2014
$000
Budget*
2015
$000
Revised
Budget*
2015
$000
Actual 2015
$000
1,744
1,705
1,932
1,932
Revenue other
40
-
12
30
Total revenue
1,784
1,705
1,944
1,962
Total expenses
1,767
1,705
1,944
1,784
17
-
-
178
Budget*
2015
$000
Revised
Budget*
2015
$000
Actual 2015
$000
Revenue Crown
Surplus/(deficit)
Ministerial Servicing
Actual 2014
$000
Revenue Crown
747
674
845
845
Revenue other
17
-
5
13
Total revenue
764
674
850
858
Total expenses
773
674
850
781
-
-
77
Surplus/(deficit)
*
(9)
The statement of accounting policies provides explanations of these figures which are not subject to
audit.
Ministry for Culture and Heritage Annual Report 2014-15/ 28
Vote Sport and Recreation
Purchase Advice and Monitoring of Sport and Recreation Crown Entities
Scope
Provision of purchase advice and monitoring of Sport New Zealand and Drug Free Sport New Zealand,
including advice in relation to appointments to boards.
What we delivered
This output expense supports our achievement of our outcomes and impacts set out above. This output
contributes to the following impact:

A joined-up cultural sector strengthens performance and flexibility.
During 2014/15, we:

Provided advice and support for board appointments to Sport New Zealand, Drug Free Sport New
Zealand, the Sports Tribunal of New Zealand and the Eden Park Trust Board.

Advised and assisted portfolio Crown-funded agencies.

Improved assessment of the performance of Crown-funded agencies.
How well we delivered it
This section provides an assessment of our delivery against the performance measures set out in the
Information Supporting the Estimates for 2014/15.
Purchase advice and monitoring of sport and recreation Crown entities
Performance measures
Briefing reports to be provided during the
year
Quality of performance advice as
assessed by an external review
Ministerial satisfaction with purchase
advice, monitoring of funded agencies
and ministerial servicing
Actual
performance
2014
Budget
standard
2015
Actual
performance
2015
27
20
39
70%
70%
76%
New measure
New measure
100%
Number of briefings, reports and other updates
39 Ministerial reports covering the performance and governance of Sport New Zealand (Sport NZ) and
Drug Free Sport New Zealand (DFSNZ) were provided throughout the year.
Quality of performance advice
NZIER undertook an assessment of the quality of a sample of policy papers, providing an overall rating
of 76%.
Ministry for Culture and Heritage Annual Report 2014-15/ 29
Ministerial satisfaction 2014/15
The Ministerial satisfaction rating received for Purchase Advice and Monitoring of Sport and
Recreation Crown Entities was 100 percent.
Board appointments and reappointments
The Ministry has been responsible for supporting the Minister for Sport and Recreation in board
appointments to three boards where the Ministers are the “responsible Ministers” under the
Crown Entities Act 2004, and the Eden Park Trust Board. In total, the Ministry provided advice
and supported Ministers on six appointments and eight reappointments to Sport and Recreation
boards; and three appointments and one reappointment to the Eden Park Trust Board.
Financial performance
Actual 2014
$000
Budget*
2015
$000
Revised
Budget*
2015
$000
Actual
2015
$000
318
318
318
318
Revenue other
-
-
-
-
Total revenue
318
318
318
318
Total expenses
297
318
318
274
21
-
-
44
Revenue Crown
Surplus/(deficit)
*
The statement of accounting policies provides explanations of these figures which are not subject to
audit.
Ministry for Culture and Heritage Annual Report 2014-15/ 30
Vote Arts, Culture and Heritage
Heritage Services
Scope
Management of new memorial projects, national monuments, war and historic graves; promotion of
cultural events; administration of legislation and grants; and research, writing and publication of New
Zealand history and reference works including Te Ara - The on-line Encyclopedia of New Zealand.
What we delivered
This output expense supports our achievement of our outcomes and impacts set out above. This output
contributes to the following impacts:

Our histories, taonga, places and symbols of nationhood are preserved for past, present and future
generations.

People understand and enjoy New Zealand’s diverse culture and heritage.

New Zealand’s unique Māori culture and heritage is protected and enhanced.
During 2014/15 we:

Progressed New Zealand’s First World War centenary commemorations projects, including
Pukeahu National War Memorial Park.

Produced and promoted significant cultural and historical resources and events, including First
World War centenary commemorative digital and print projects.

Provided historical and cultural information that engages New Zealanders and international
audiences, using a range of media, including print and digital.

Collected and preserved stories of cultural importance to New Zealand, including progressing the
Treaty Settlement Stories project.

Produced digital and print publications that showcase Māori culture, history, and language.

Administered the annual New Zealand Oral History Awards, Awards in History and the Waitangi
Day Fund.

Chaired the Government’s interdepartmental steering group on commemorations.

Contributed to work on scoping Sector Reference Groups that could support the Heritage Forum
to identify and progress priority work across the heritage sector.

Managed the maintenance of war graves and historic monuments in New Zealand and abroad,
and completed earthquake strengthening work at the National War Memorial.

Negotiated 20 Treaty settlement protocols.

Administered legislation to protect symbols of nationhood and movable and found heritage.
How well we delivered it
This section provides an assessment of our delivery against the performance measures set out in the
Information Supporting the Estimates for 2014/15.
Ministry for Culture and Heritage Annual Report 2014-15/ 31
Collect and preserve oral history and digital stories
Performance measures
Progress third-party commissioned
historical projects, including: Corrections
oral history and heritage projects; New
Zealand Post First World War research
project
Total community contributions to the
Ministry’s websites
Actual
performance
2014
Budget
standard
2015
Actual
performance
2015
New measures
Delivered
against plan
Delivered
against plan
1,163
1,000
986
Oral History Programme
During 2014/15 five video oral histories were completed as part of the Ministry’s Treaty Settlement
Stories project. Work was done to set up oral history projects commissioned by the Ministry for
Primary Industries and the Ministry of Foreign Affairs and Trade, which will produce at least ten oral
histories by December 2015.
All Oral History Project interviews collected during 2014/15 have been archived to professional
standards within the Ministry’s system. They are currently awaiting processing by the Alexander
Turnbull Library.
Total community contributions
The community contributions provided this year have included comments and images added to items
on the Te Ara and NZHistory sites, stories and images added to QuakeStories, and comments and
photos added to the 28th Māori Battalion website.
Ministry for Culture and Heritage Annual Report 2014-15/ 32
Administration of legislation to protect New Zealand and taonga Māori and cultural heritage
Actual
performance
2014
Budget
standard
2015
Actual
performance
2015
105
45
91
33
27
50
Number of taonga tūturu applications
sent to the Māori Land Court
New measure
10
57
Number of justified complaints from
applicants in regards to the Protected
Objects Act 1975
0
Fewer than 5
0
Number of Protected Objects Act 1975
awareness presentations to key
stakeholders
17
6
22
Acceptance of Ministerial submissions in
relation to the Flags, Emblems and
Names Protection Act 1981
100%
100%
100%
Ministerial applications in relation to the
Flags, Emblems and Names Protection
Act 1981 submitted to the Minister within
3 months of receipt
96.43%
100%
50%
Number of enquiries received in relation
to the Flags, Emblems and Names
Protection Act 1981
56
40
64
Performance measures
Number of export certificates,
applications and letters processed to
ensure significant movable heritage
subject to the Protected Objects Act is
not lost overseas
Number of taonga tūturu case
notifications made*
* Newly found taonga tūturu notified to the Ministry in 2014/15
Protected Objects Act
This year 25 temporary export certificates and 14 permanent export certificates were issued, with
five clearance certificates also processed. In addition, 47 letters were sent to would-be applicants
advising that the objects in question had been found not to be protected New Zealand objects under
the Protected Objects Act. No export applications were declined.
During 2014/15 the Ministry continued to seek out opportunities for presentations to key stakeholders
to raise awareness of the Protected Objects Act. 22 presentations were made, with a particular focus
this year on presentations to iwi and hapu around the country. A presentation to students at the
Eastern Institute of Technology Gisborne also focused on newly-found taonga tūturu and the related
provisions of the Act.
Ministry for Culture and Heritage Annual Report 2014-15/ 33
Taonga tūturu notifications
50 cases of newly found taonga tūturu were notified to the Ministry in 2014/15, and a total of 46
public notifications were made by the Ministry in 2014/15.
66 cases processed had recommendations approved by the Chief Executive; 36 of these were for
backlog cases and 30 were current cases (post 1 July 2012).
57 taonga tūturu applications have been filed in the Māori Land Court this financial year.
Flags, Emblems and Names Protection Act
This year saw an increased level of activity related to the Flags, Emblems and Names Protection
Act, with particular interest shown to the use of the word ‘Anzac’ in the 2015 centenary year. A total
of 64 applications and enquiries were processed in relation to the Act.
Sixteen applications to use the word ‘Royal’ in a trade mark or company name were submitted to the
Minister this year and one entity was bestowed with the title ‘Royal’ by Her Majesty The Queen. The
Ministry also considered a number of applications and uses of the Coat of Arms and other
government emblems.
Nine of 18 Ministerial submissions this year were not submitted to the Minister within three months
of the application date this year, due to requiring further information from the applicant. In future,
processing of submissions will be counted from the date at which all required information is provided.
On 3 September 2014, for the first time in New Zealand, the Red Ensign was authorised by His
Excellency The Governor-General to fly on land in order to mark Merchant Navy Day, to recognise
the critical role played by the Merchant Navy during wartime.
Ministry for Culture and Heritage Annual Report 2014-15/ 34
Maintain war graves and access to memorials and other places of national significance
Actual
performance
2014
Budget
standard
2015
Actual
performance
2015
Inspect all war graves and memorials
included in the Ministry's portfolio within
New Zealand at least once every two
years
98.69%
100%
98.42%
War graves, historic sites and national
monuments within the Ministry's portfolio
are refurbished, where required, within 2
years of inspection*
97.13%
100%
98.48%
0
Fewer than 5
0
5,394
5,000
49,001
Performance measures
Number of justified complaints received
about the standard of maintenance
Number of visitors to the National War
Memorial
* This is measured two years from the financial year that the inspection took place
War graves and memorials
Over the past two years, 3,559 out of 3,616 war graves and memorials in New Zealand have been
inspected. All scheduled inspection tours were carried out during 2014/15. A small number of graves
and memorials included on these tours were not inspected owing to circumstances beyond the
Ministry’s control, such as flight delays cutting short inspection time, closed cemeteries in Canterbury
preventing access because of earthquake damage, weather events causing inspection tours to be
cut short, difficulties in arranging boat trips to isolated graves on islands, and inability of landowners
to transport Ministry officials to remote graves on their property at pre-arranged times.
During inspection of war graves, historic sites and monuments, those requiring refurbishment to
ensure they are legible and deemed intact are identified. In 2014/15 refurbishment work was carried
out on 65 out of 66 historic sites and monuments which had been identified as needing attention
from our inspections over the past two years (2013/14 and 2014/15), the exception being one
memorial requiring extensive consultation with iwi. This is a much lower number of refurbishments
than usual in a financial year, owing to the high proportion of funds available in 2014/15 having to
be spent on a few major projects, notably the completion of stage 2 of the renovation of the Bourail
New Zealand War Cemetery in New Caledonia.
The Ministry has not received any complaints about the standard of maintenance. Work has been
completed only by reputable stonemasons belonging to the New Zealand Master Monumental
Masons Association, stonemasons who have carried out work of a high standard in the past, or
conservators employed to work on war and historic graves and memorials.
Visitors to the National War Memorial
The target of 5,000 visitors has been exceeded due to the Memorial being re-opened in April 2015
and a large increase in visitors as people visit the new Pukeahu National War Memorial Park.
Ministry for Culture and Heritage Annual Report 2014-15/ 35
Promotion of cultural events and significant commemorations
Performance measures
Ministerial satisfaction with the coordination of anniversaries and the
commemorations programme
Actual
performance
2014
Budget
standard
2015
Actual
performance
2015
Rated ‘good’
Rated ‘good’ or
better
No feedback
was provided
382 registrations
for the WW100
symbol
282 projects listed
on the WW100
Number of heritage sector organisations
website
and community groups actively involved 179 WW1 lotteries
in the WW100 programme
applications
Progress National War Memorial Park
Annual number of total visits to WW100
websites, and members of WW100
Facebook and Twitter communities
250 registrations
for the WW100
symbol
300 projects, 528 registrations
activities or
for the WW100
events listed on
symbol
the WW100
469 projects,
website
activities and
(including new events listed on
Eventfinder
the WW100
function)
website
Delivered against
plan
Delivered
against plan
Delivered
against plan
74,148 total visits
to WW100.govt.nz
1,672 members of
WW100NZ
Facebook
2,227 followers of
WW100NZ Twitter
50,000 visits
across WW100
websites
2,500 members
of WW100 NZ
Facebook
2,500 followers
of WW100 NZ
Twitter
272,459 visits to
WW100.govt.nz
8583 members
of WW100NZ
Facebook
4102 followers
of WW100NZ
Twitter
Co-ordination of anniversaries and the commemorations programme
The Ministry leads a cross-departmental committee to plan for and co-ordinate a range of
commemorative projects run by different agencies. In 2014/15 we worked on the 175th anniversary
of the Treaty of Waitangi on 6 February 2015 (see www.mch.govt.nz/waitangi175), and on planning
for the 125th anniversary of Women’s Suffrage (2018) and the 250th anniversary of the first visit of
Captain James Cook (October 2019). The Cook anniversary in 2019 is an exciting opportunity to
reflect on the meeting of two cultures, the achievements of Māori and European sailors and
navigators, and the meeting of two intellectual traditions – Western science and mātauranga Māori.
Members of the cross-departmental committee also take responsibility for ensuring planning is
underway for ‘Tier 2’ anniversaries. The Ministry worked with stakeholders to plan the 150 th
anniversary of Wellington becoming the capital of New Zealand and the 150th anniversary of the
creation of the Native Land Court. Other Tier 2 events in 2015 include the 70th anniversaries of VE
Day and Victory in the Pacific Day and the 50th anniversary of the Cook Islands self-government.
Involvement in the WW100 programme
Communities around New Zealand were very engaged with the WW100 commemorations
programme, with 528 applications to use the WW100 symbol. The WW100 website listed 469
projects, activities or events that took place around New Zealand in 2014/15. These were searchable
by the region or town where they were held, as well as by the category of the event.
Ministry for Culture and Heritage Annual Report 2014-15/ 36
WW100 Social media
Since the launch of the centenary commemoration period on 1 August 2014, the Ministry have used
the WW100 website and related social media (Twitter and Facebook) to increase public engagement
with the Centenary, and encourage public interaction. Local and community groups have been
encouraged to list their projects and events on the site. Approximately 190,000 users have visited
the WW100 website since 1 August 2014 and traffic peaked in Anzac week, with 58,883 users visiting
the website in the week ending 28 April 2015. On average, our WW100 social media posts reach
over 25,000 people a week, and this peaked at 240,000 people in Anzac week.
A WW100 news media briefing kit was prepared for media over Anzac week, which included key
facts and statistics, alongside an outline of the scale of the WW100 programme and important links
to the official Anzac programme and history information. Media interest increased over Anzac
weekend, with 1,210 individual items carried in public facing channels. Arrangements with producers
at broadcast channels (TV1, TV3 and Sky TV) saw the WW100 pin widely worn by newsreaders.
Themes for these stories were broad, ranging from coverage of events to historical stories and
contemporary related issues.
A paid media campaign accompanied this
release and the social media programme; this
ran in six print papers as well as across key
online news platforms. The Ministry also
provided support for national sports agencies to
host commemorative events, negotiated the use
of the WW100 logo on uniforms, provided speech
notes, visual material, moving image and
showreels for stadium dressing, and negotiated
media needs and theming. The WW100 logo was carried as an on-screen identifier on all network
television broadcasts of New Zealand Rugby, Netball New Zealand, NRL Rugby League and
National Basketball League games occurring on Anzac weekend.
Progress National War Memorial Park
Pukeahu National War Memorial Park was completed in March 2015 and formally opened on 18
April 2015. The Australian Memorial was opened a few days later. Plans for memorials from Turkey,
the United Kingdom, the United States of America, France, Belgium and Canada are in progress,
and we expect these memorials will be installed and dedicated over the next four years.
Ministry for Culture and Heritage Annual Report 2014-15/ 37
Information on and communication of New Zealand and Māori history, society and culture
Actual
performance
2014
Budget
standard
2015
Actual
performance
2015
9.2 million
10.5 million
11.2 million
27.4 million
31.2 million
31.7 million
3.2 million
3.5 million
4 million
New measure
Delivered
against plan
Delivered
against plan
Delivered against
plan
Delivered
against plan
Delivered
against plan
New measures
10 topics and
real-time project
delivered
against plan
10 topics and
real-time project
delivered
against plan
Progress Treaty Settlement Histories
digital print and stakeholder engagement
Delivered against
plan
Delivered
against plan
Delivered
against plan
Annual user satisfaction of Ministry
websites
Average rating of
‘good’ or better
Performance measures
Annual number of total visits to the
Ministry’s websites
Annual number of page impressions for
Ministry’s websites
Annual number of returning visitors to
the Ministry’s websites
Maintaining and developing Te Ara –
The encyclopedia of New Zealand
Progress WW1 centenary
commemorative print projects (Western
Front, Heritage Sites, Māori and the First
World War)
Progress NZ History topics and 100
Years Ago real-time project
Average rating
Achieved
of 'good' or average rating of
better
‘good’ or better
Our websites
Te Ara,- The Encyclopedia of New Zealand, provides resources about New Zealand’s people, land,
culture and society. Te Ara aims to be a comprehensive guide to New Zealand’s people, natural
environment, history, culture, economy, institutions, and society.
NZHistory covers three broad themes in New Zealand history: culture and society, politics and
government, and war and society.
28th Māori Battalion is a place to record, remember, honour and maintain information and knowledge
of the Māori Battalion and its outstanding contribution to Aotearoa New Zealand.
QuakeStories is a place where people can tell their stories about the Canterbury earthquakes of
September 2010 and February 2011 and their aftershocks.
Anzac.govt.nz was launched to coincide with the 90th anniversary of the Gallipoli landings in 2005.
The site provides a virtual guide of the Gallipoli Peninsula and includes searchable records of all
New Zealanders who died at Gallipoli.
The VietnamWar website is the hub for memories of New Zealand and the Vietnam War. It was
created as part of the Vietnam War Oral History Project run by the Ministry between 2008 and 2012.
Ministry for Culture and Heritage Annual Report 2014-15/ 38
User satisfaction
During 2014/15 we conducted our fourth annual user satisfaction of our Ministry websites. A total of
302 responses were received compared with 459 in 2013/14, 651 in 2012/13, and 76 in 2011/12.
Respondents were asked to rate the websites they had used and responses were as follows:

What did you think about the quality of the content?
78 percent answered ‘Ok’, ‘good’ or ‘very good’ (2014: 90 percent; 2013: 95.3 percent)

How easy was it to find the information you were looking for?
77 percent answered ‘good’ or ‘very good’ (2014: 86.7 percent; 2013: 90.1 percent)

What was your general impression?
77 percent answered ‘good’ or ‘very good’ (2014: 89.3 percent)
The Ministry has developed a strong user base and is providing a high quality service to these users.
Comments received as part of the survey show that users find our content highly engaging and our
websites a pleasure to use but the decline in key measures (although of a lower number of responses
than the previous two years) points to a need for rigorous maintenance of content and technology to
keep pace with user expectations.
Financial performance
Actual
2014
$000
Budget*
2015
$000
Revised
Budget*
2015
$000
Actual
2015
$000
10,110
7,190
9,294
9,294
Revenue other
728
525
1,449
936
Total revenue
10,838
7,715
10,743
10,230
Total expenses
10,612
7,715
10,743
9,495
226
-
-
735
Revenue Crown
Surplus/(deficit)
*
The statement of accounting policies provides explanations of these figures which are not subject to
audit.
Ministry for Culture and Heritage Annual Report 2014-15/ 39
Vote Arts, Culture and Heritage
Cultural Diplomacy International Programme
Scope
Management and delivery of an international cultural diplomacy programme through a series of
projects and activities primarily focussed on Asia and in locations where New Zealand is pursuing free
trade agreements.
What we delivered
This output expense supports our achievement of our outcomes and impacts set out above. This output
contributes to the following impact:

Our culture inspires positive changes in communities, the economy, and the environment.
During 2014/15 we:

Provided high-quality advice to the Minister for Arts, Culture and Heritage on the Cultural
Diplomacy International Programme; and

Managed the Cultural Diplomacy International Programme to achieve desired outcomes.
How well we delivered it
This section provides an assessment of our delivery against the performance measures set out in the
Information Supporting the Estimates for 2014/15.
Performance measures
Actual
performance
2014
Budget
standard
2015
Actual
performance
2015
5
3
5
85%
80%
No feedback
was provided
New measure
80%
90%
Number of approved projects completed
Ministerial satisfaction with the quality
and timeliness of advice is consistently
high
Extent to which desired outcomes for
projects completed in this period have
been achieved
Cultural diplomacy international programme (CDP)
Five CDIP projects were completed during 2014/15:
 Edinburgh Festivals – leveraging New Zealand’s cultural showcase at Edinburgh in 2014

Hosting of Tanzanian athletes in lead up to Commonwealth Games

New Zealand’s Guest of Honour programme at 2015 Taipei International Book Exhibition

2015 Cricket World Cup offshore leveraging activities

Tuku Iho Exhibition in Santiago
Ministry for Culture and Heritage Annual Report 2014-15/ 40
Financial performance
Budget*
2015
$000
Revised
Budget*
2015
$000
Actual
2015
$000
619
219
489
489
Revenue other
-
-
-
-
Total revenue
619
219
489
489
Total expenses
325
219
489
477
Surplus/(deficit)
294
-
-
12
Actual
2014
$000
Revenue Crown
*
The statement of accounting policies provides explanations of these figures which are not subject to
audit.
Ministry for Culture and Heritage Annual Report 2014-15/ 41
Vote Arts, Culture and Heritage
First World War Centenary
Scope
Departmental Output Expenses
This category is limited to provision of activities relating to First World War centenary commemorations.
Non-departmental Capital Expenses
This category is limited to provision of activities relating to First World War centenary commemorations.
What we delivered
This output expense supports our achievement of our outcomes and impacts set out above. This output
contributes to the following impacts:

Our histories, taonga, places and symbols of nationhood are preserved for past, present and future
generations.

People understand and enjoy New Zealand’s diverse culture and heritage.

New Zealand’s unique Māori culture and heritage is protected and enhanced.
During 2014/15 we progressed New Zealand’s First World War centenary legacy projects, including
the:

Ngā Tapuwae New Zealand First World War Trails

Great War Exhibition

Pukeahu Education and Interpretation Programme.
How well we delivered it
This section provides an assessment of our delivery against the performance measures set out in the
Information Supporting the Estimates for 2014/15.
First World War Centenary
Performance measures
Progress First World War centenary
legacy projects, including Interpretation
& Education Centre and Heritage Trails
Actual
performance
2014
Budget
standard
2015
Actual
performance
2015
Gallipoli
Heritage Trail
completed –
March 2015.
Work started on
Project plan and Western Front
implementation
Heritage Trail.
strategy
Design and
developed
delivery stage of
the
Interpretation &
Education
Centre begun
(subject to
Gallipoli
Heritage Trail
completed 18
March 2015.
Work started on
Western Front
Heritage Trail
Design and
delivery stage of
the
Interpretation &
Education
Centre begun.
Ministry for Culture and Heritage Annual Report 2014-15/ 42
decision about
location)
First World War Centenary Operating Expenses
Performance measures
Actual
performance
2014
Budget
standard
2015
Actual
performance
2015
Progress First World War centenary
operating legacy projects
New measure
Delivered
against plan
Delivered
against plan
Performance measures
Actual
performance
2014
Budget
standard
2015
Actual
performance
2015
Progress First World War centenary
capital legacy projects
New measure
Delivered
against plan
Delivered
against plan
First World War Centenary Capital Expenses
Progress First World War centenary legacy projects
The WW100 programme involves central Government investment in specific legacy projects,
including the Ngā Tapuwae New Zealand First World War Trails and the Pukeahu Education and
Interpretation Programme and Centre. In addition, the Ministry contributed $7.3 million to the
development of the Great War Exhibition at the former Dominion Museum.
Ngā Tapuwae New Zealand First World War Trails
The Ngā Tapuwae trails will provide accessible information on First World
War sites through a website, phone apps, signage and museum displays.
Two trails are planned, one at Gallipoli and the other along the Western
Front (Belgium, France and parts of the United Kingdom). Work began
on the Gallipoli trail in August 2014 and was completed by March 2015,
just in time for the Anzac 2015 commemorations on the peninsula.
There have been over 5,000 downloads of the Gallipoli app since its launch in March 2015. Work
then started on the Western Front app, which is expected to be launched in October 2015.
Education and Interpretation Centre and Programme
In 2014/15 the Ministry started the process of identifying and developing options for an Education
and Interpretation Centre at Pukeahu National War Memorial Park. In the interim, since Anzac Day
2015 we have run an education programme at the Park using the Hall of Memories and outdoor
areas. Three to five schools visit every weekday, with most going to both the Great War Exhibition
and the National War Memorial. Nearly 5,000 students had taken part in the educational programme
by 30 June 2015. The Ministry is working with the Wellington City Council to convert the former
Home of Compassion Crèche into an education centre to host schools visiting Pukeahu.
Great War Exhibition
The Great War Exhibition, designed and developed in partnership with Sir Peter
Jackson, opened in April 2015. The exhibition will be changed and updated over the
next two years, to follow the historical progress of the War.
Ministry for Culture and Heritage Annual Report 2014-15/ 43
Financial performance
Departmental Output Expenses
Actual 2014
$000
Budget*
2015
$000
Revised
Budget*
2015
$000
Actual
2015
$000
Revenue Crown
-
4,414
6,574
6,574
Revenue other
-
-
100
102
Total revenue
-
4,414
6,674
6,676
Total expenses
-
4,414
6,674
6,586
Surplus/(deficit)
-
-
-
90
Non-Departmental Capital Expenditure
Actual 2014
$000
Budget*
2015
$000
Revised
Budget*
2015
$000
Actual 2015
$000
Revenue Crown
-
500
-
-
Revenue other
-
-
-
-
Total revenue
-
500
-
-
Total expenses
-
500
-
-
Surplus/(deficit)
-
-
-
-
*
The statement of accounting policies provides explanations of these figures which are not subject to
audit.
Ministry for Culture and Heritage Annual Report 2014-15/ 44
Effective and efficient delivery of our services
Te whakahaere tika i ā mātou ratonga
This section reports on how the Ministry continuously improved its service delivery and provided value
for money. The efficient and effective delivery of the Ministry’s services contributes to the
Government’s policy objective of lifting the performance of the public sector.
Managing in a changeable operating environment
The Ministry’s ability to identify and manage risks affects our ability to achieve our goals. We mitigate
risks effectively through having strong governance structures for all our activities and through having
an effective risk management policy, including business continuity plans.
The Ministry’s Leadership Team meets weekly to discuss progress on major projects. We regularly
assess our organisational performance, our financial position and our compliance with statutory and
internal policy requirements, and refine our management strategies in response.
To meet the challenges across our business we are reviewing and updating our operating model.
We are refining our portfolio management approach so that our agreed priorities become the primary
unit of analysis and engagement. We want to be able to:
 understand opportunity costs
 make trade-offs transparently
 balance short term and long term investments
 take a ‘managed risk’ approach so that we can encourage innovation
 make recommendations on disinvesting in low return investments
We know that the sector needs a strong evidential base to support our future strategy and operating
model and we are making more resources available for research and evaluation.
Te Arataki
In 2014/15 the Ministry refreshed its approach to supporting Iwi/Māori cultural aspirations. Te Arataki
is the Ministry’s strategy to support Iwi/Māori cultural aspirations as set out in the Cultural Sector
Strategic Framework 2014-18. With an intergenerational focus, medium-term progress should see
Iwi/Māori with strengthened capacity to advance Iwi/Māori cultural aspirations for the benefit of
Iwi/Māori and all New Zealanders.
The Ministry provided the following products, advice and services to the public and of particular
interest to Iwi/Māori:
 Maintained and supported the production, funding, and provision of premium online and published
content on history and te reo Māori (the Dictionary of New Zealand Biography, Te Ara – The
Encyclopedia of New Zealand, 28th Māori Battalion, NZHistory.net.nz net websites); developed the
Treaty Settlement Stories project; developed the Waitangi Signings resource; and scoped the
Treaty Women Signatories project.
 Managed the provision of 27 Treaty Settlement protocols and supported partnership engagements
with 72 iwi and 36 external stakeholders, and co-sponsored the preliminary scoping of a review of
the Protected Objects Act, to ensure discharge of our kaitiakitanga, manaakitanga and matauranga
management and stewardship responsibilities.
 Facilitated engagement with 18 cultural sector agencies and 12 government-funded agencies to
support government commemoration programmes and significant and sector-led events including:
the Waitangi National Trust and Waitangi Day commemoration committee, the Waitangi 175 intergovernment commemoration committee, WW100, Te Matatini 2015 kapa haka festival and
Ministry for Culture and Heritage Annual Report 2014-15/ 45
research project, the 150th Waikato-Wars commemoration, the Pukeahu National War Memorial
Park and Great War Exhibition blessings, Te Papa Repatriation programme, and the Heritage New
Zealand Pouhere Taonga Landmarks project.
The Ministry delivers support services efficiently
The Ministry is required to meet efficiency savings targets across the Ministry’s departmental
appropriations. The 2014 Benchmarking Administrative and Support Services (BASS) benchmarked
results confirm that the Ministry’s support functions are efficient and also effective for an organisation
of this size.
The Ministry is already working with agencies to identify opportunities for future efficiency savings,
using tools such as BASS, and we are investigating the possibility of shared IT services with other
agencies in the sector.
Our people
The Ministry has a capable workforce which is committed to advancing the cultural sector. We are
characterised by a “can do”, innovative, agile and collaborative culture and an ability to get things done.
We periodically survey staff engagement and identify actions to improve engagement levels. The
current focus is on developing a better sense of common purpose, enabling people to develop their
careers and reviewing our approach to performance management. This focus has derived from the
work that has been done on our workforce strategy.
The Ministry is committed to the principle and practice of equal employment opportunities in the
recruitment, employment, training and promotion of staff, and to the identification and elimination of
barriers that cause or perpetuate inequality in employment opportunities. The Ministry is made up of a
diverse range of staff including:
•
8% Maori
•
5% Asian descent
•
60% Women.
Ministry for Culture and Heritage Annual Report 2014-15/ 46
Capability and engagement measures
The following measures were used to monitor trends in the Ministry’s organisational capability and
health:
What we want to
do
Sustain high levels
of engagement for a
responsive,
productive and
focussed workforce
Indicator
Performance
Employee
engagement is at
best practice levels
based on
engagement survey
results (IBM) – ratio
of at least 30%
engaged to 10%
disengaged
2013: 20% engaged to 14% disengaged
2015: 21% engaged to 16% disengaged
At least 90% of new 2012: 96.8%
permanent staff still 2013: 92%
in the same role
2014: 80%
after 12 months
2015: 78%
Average length of
service for
permanent staff is
within a range of 4-6
years
2012: 6.0 years
2013: 4.96 years
2014: 5.6 years
2015: 5.6 years
Unplanned staff
turnover is within a
range of 10-15%
2012: 9%
2013: 15.9%
2014: 7.38%
2015: 21.7%
Improve the quality Improvement in
of policy advice and rating of quality of
content we produce policy advice by
independent
assessment
2012: Average rating from NZIER 7.0 out of 10
2013: Average rating from NZIER 7.2 out of 10
2014: Average rating from NZIER 7.0 out of 10
2015: Average rating from NZIER 7.6 out of 10
Improve efficiency,
reliability and staff
use of information
systems
2012: 98.7%
2013: 99.9%
2014: 99.9%
2015: 99.2%
This result assumes that there are 2,142 supported
hours in a year. The percentage of time the network is
functioning has remained reasonably static over the
past four years.
Percentage of time
systems are
available in normal
business hours
Ministry for Culture and Heritage Annual Report 2014-15/ 47
Improving staff
2012: 83% of respondents were satisfied that the
satisfaction with
technology they use at work meets their business
information systems needs. 83% of respondents were satisfied with the
quality of service provided by the ICT service desk.
2013: 67% of respondents were satisfied that the
technology they use at work meets their business
needs. 91% of respondents were satisfied with the
quality of service provided by the ICT service desk.
2014: 90% of respondents were satisfied that the
technology they use at work meets their business
needs. 88% of respondents were satisfied with the
quality of service provided by the ICT service desk.
2015: 95.6% of the respondents were satisfied that
their requests to the Service Desk are responded to,
and resolved in a timely manner. 86.7% of respondents
were satisfied that the technology they use at work
meets their business needs.
Ministry for Culture and Heritage Annual Report 2014-15/ 48
Financial Statements
Ngā Tuhinga tahua
Ministry for Culture and Heritage Annual Report 2014-15/ 49
Statement of responsibility
I am responsible, as Chief Executive of the Ministry for Culture and Heritage for:

the preparation of the Ministry’s financial statements, and statements of expenses and capital
expenditure, and for the judgements expressed in them;

having in place a system of internal control designed to provide reasonable assurance as to
the integrity and reliability of financial reporting;

ensuring that end-of-year performance information on each appropriation administered by the
Ministry is provided in accordance with sections 19A to 19C of the Public Finance Act 1989,
whether or not that information is included in this annual report; and

the accuracy of any end-of-year performance information prepared by the Ministry, whether or
not that information is included in the annual report.
In my opinion:

the financial statements fairly reflect the financial positions of the Ministry as at 30 June 2015
and its operations for the year ended on that date; and

the forecast financial statements fairly reflect the forecast financial position of the Ministry as
at 30 June 2016 and its operations for the year ending on that date.
Paul James
Chief Executive
30 September 2015
Ministry for Culture and Heritage Annual Report 2014-15/ 50
Statement of comprehensive revenue and expense
for the year ended 30 June 2015
Note
Actual Budget*
2014
2015
$000
$000
Revised
Budget*
2015
$000
Actual Forecast*
2015
2016
$000
$000
Revenue
Revenue Crown
20,809
17,451
22,713
22,713
17,340
Revenue from other
departments
2
787
525
1,225
903
997
Revenue from third parties
2
79
–
326
227
580
21,675
17,976
24,264
23,843
18,917
Total revenue
Expenditure
Personnel costs
3
11,716
9,100
11,264
11,107
11,461
Other operating expenses
4
8,894
8,180
12,340
11,001
6,760
Depreciation and
amortisation expenses
5
285
430
430
184
430
Capital charge
6
116
116
116
116
116
21,011
17,826
24,150
22,408
18,767
Net surplus/(deficit)
664
150
150
1,435
150
Other comprehensive
revenue and expense
–
–
–
–
–
664
150
150
1,435
150
Total expenditure
Total comprehensive
revenue and expense
*The statement of accounting policies provides explanations of these figures which are not subject to audit.
Explanations of major variances against budget are provided in note 13.
The accompanying notes form part of these financial statements.
Ministry for Culture and Heritage Annual Report 2014-15/ 51
Statement of financial position
as at 30 June 2015
Actual
2014
$000
Note
Budget*
2015
$000
Revised
Budget*
2015
$000
Actual
2015
$000
Forecast*
2016
$000
ASSETS
Current assets
Cash and cash equivalents
Debtors and other receivables
2,951
2,788
2,745
4,333
2,100
646
250
250
102
250
65
100
3,602
3,809
2,577
3,662
3,138
6,597
8,244
4,927
385
359
384
320
954
45
27
45
94
45
430
386
429
414
999
4,092
3,524
7,026
8,658
5,926
7
Prepayments
Total current assets
Non-current assets
Property, plant and equipment
5
Intangible assets
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Creditors and other payables
8
1,361
1,300
4,802
5,053
3,727
Repayment of surplus to the Crown
9
664
150
150
1,435
150
10
544
525
525
651
500
2,569
1,975
5,477
7,139
4,377
76
102
102
72
102
76
102
102
72
102
Total liabilities
2,645
2,077
5,579
7,211
4,479
Taxpayers’ funds
1,447
1,447
1,447
1,447
1,447
Employee entitlements
Total current liabilities
Non-current liabilities
Employee entitlements
10
Total non-current liabilities
*The statement of accounting policies provides explanations of these figures which are not subject to audit.
Explanations of major variances against budget are provided in note 13.
The accompanying notes form part of these financial statements.
Ministry for Culture and Heritage Annual Report 2014-15/ 52
Statement of changes in equity
for the year ended 30 June 2015
Note
Budget*
2015
$000
Revised
Budget*
2015
$000
1,447
1,447
1,447
1,447
1,447
664
150
150
1,435
150
2,111
1,597
1,597
2,882
1,597
Actual
2014
$000
Actual
2015
$000
Forecast*
2016
$000
Taxpayers’ funds
Balance at 1 July
Total
comprehensive
revenue and
expense for the
year
Total
comprehensive
revenue and
expense
Repayment of
surplus to the
Crown
Balance at 30
June
9
(664)
1,447
(150)
(150)
(1,435)
(150)
1,447
1,447
1,447
1,447
*The statement of accounting policies provides explanations of these figures which are not subject to audit.
Explanations of major variances against budget are provided in note 13.
The accompanying notes form part of these financial statements.
Ministry for Culture and Heritage Annual Report 2014-15/ 53
Statement of cash flows
for the year ended 30 June 2015
Note
Actual
2014
$000
Revised
Budget*
2015
$000
Budget*
2015
$000
Actual Forecast*
2015
2016
$000
$000
Cash flows from operating activities
Receipts from the Crown
20,809
17,451
22,713
26,215
17,340
709
525
1,587
1,130
1,577
(11,786)
(8,989)
(11,159) (11,005)
(11,355)
(9,455)
(8,291)
(12,137) (14,182)
(6,941)
Goods and services tax (net)
(132)
–
–
174
–
Payments for capital charge
(116)
(116)
(116)
(116)
(116)
29
580
888
2,216
505
(271)
(390)
(390)
(97)
(960)
Receipts from sale property, plant and
equipment
148
–
–
2
–
Purchase of intangible assets
(46)
(40)
(40)
(75)
(40)
(169)
(430)
(430)
(170)
(1,000)
Repayment of surplus
(2,876)
(170)
(664)
(664)
(150)
Net cash flows from financing activities
(2,876)
(170)
(664)
(664)
(150)
Net increase/(decrease) in cash held
(3,016)
(20)
(206)
1,382
(645)
Cash at the beginning of year
5,967
2,808
2,951
2,951
2,745
Cash at the end of year
2,951
2,788
2,745
4,333
2,100
Receipts from other departments/third
parties
Payments to employees
Payments to suppliers
Net cash flows from operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Net cash flows from investing activities
Cash flows from financing activities
*The statement of accounting policies provides explanations of these figures which are not subject to audit.
Explanations of major variances against budget are provided in note 13.
The accompanying notes form part of these financial statements.
Ministry for Culture and Heritage Annual Report 2014-15/ 54
Statement of commitments
as at 30 June 2015
Non-cancellable operating lease commitments
The Ministry leases property, plant and equipment in the normal course of its business, with the main
commitment relating to the premises.
The Ministry has occupied ASB House from 1 April 2012, with the lease term expiring on 31 October
2015. The Ministry has entered into a 15 year lease of the Old Public Trust building, with the lease
term beginning on 31 October 2015 and expiring on 30 October 2030. There are two rights of renewal,
each for a five year term.
There are no restrictions placed on the Ministry by any of its leasing arrangements.
Actual
2014
$000
Actual
2015
$000
88
689
Later than one year and not later than five years
–
2,970
Later than five years
–
7,672
88
11,331
Non-cancellable operating lease commitments
The future aggregate minimum lease payments to be paid under
non-cancellable operating leases are as follows:
Not later than one year
Total non-cancellable operating lease commitments
Capital commitments
The Ministry has no capital commitments (2014: nil).
Statement of contingent liabilities and
contingent assets
as at 30 June 2015
Quantifiable contingent liabilities
The Ministry has no contingent liabilities at 30 June 2015 (2014: nil)
Contingent assets
The Ministry has no contingent assets at 30 June 2015 (2014: nil).
The accompanying notes form part of these financial statements.
Ministry for Culture and Heritage Annual Report 2014-15/ 55
Notes to the financial statements
Note 1: Statement of accounting policies
Reporting Entity
The Ministry for Culture and Heritage (the Ministry) is a government department as defined by section
2 of the Public Finance Act 1989 and is domiciled and operates in New Zealand. The relevant
legislation governing the Ministry’s operations includes the Public Finance Act 1989. The Ministry’s
ultimate parent is the New Zealand Crown.
In addition, the Ministry has reported on Crown activities and trust monies that it administers.
The primary objective of the Ministry is to provide services to the public rather than make a financial
return. Accordingly, the Ministry has designated itself as a public benefit entity (PBE) for financial
reporting purposes.
The financial statements of the Ministry are for the year ended 30 June 2015. The financial statements
were authorised for issue by the Chief Executive of the Ministry on 30 September 2015.
Basis of Preparation
The financial statements have been prepared on a going concern basis, and the accounting policies
have been applied consistently throughout the period.
Statement of compliance
The financial statements of the Ministry have been prepared in accordance with the requirements of
the Public Finance Act 1989, which include the requirement to comply with New Zealand generally
accepted accounting practice (NZ GAAP), and Treasury Instructions.
These financial statements have been prepared in accordance with Tier 2 PBE Standards and
disclosure concessions have been applied. The criteria under which an entity is eligible to report in
accordance with Tier 2 PBE Standards are:


The Ministry does not have public accountability as defined in paragraph 36 of XRB A1.
The Ministry is not large (where large is defined as expenses greater than $30 million in
paragraph 42 of XRB A1).
These financial statements comply with PBE accounting standards.
These financial statements are the first financial statements presented in accordance with the new
PBE accounting standards. There are no material adjustments arising on transition to the new PBE
accounting standards.
Measurement base
The financial statements have been prepared on a historical cost basis. Some assets and liabilities
are recorded at “fair value”, the amount for which an item could be exchanged or a liability settled
between knowledgeable and willing parties in an arm’s-length transaction.
Functional and presentation currency
The financial statements are presented in New Zealand dollars and all values are rounded to the
nearest thousand dollars ($000). The functional currency of the Ministry is New Zealand dollars.
Standards issued and not yet effective and not early adopted
In May 2013, the External Reporting Board issued a new suite of PBE accounting standards for
application by public sector entities for reporting periods beginning on or after 1 July 2014. The
Ministry has applied these standards in preparing the 30 June 2015 financial statements. In October
2014, the PBE suite of accounting standards was updated to incorporate requirements and guidance
for the not-for-profit sector. These updated standards apply to PBEs with reporting periods beginning
on or after 1 April 2015. The Ministry will apply these updated standards in preparing its 30 June 2016
financial statements. The Ministry expects there will be minimal or no change in applying these
updated accounting standards.
Ministry for Culture and Heritage Annual Report 2014-15/ 56
Summary of Significant Accounting Policies
Revenue
Revenue is measured at the fair value of consideration received or receivable.
Revenue Crown
Revenue from the Crown is measured based on the Ministry’s funding entitlement for the reporting
period. The funding entitlement is established by Parliament when it passes the Appropriation Acts
for the financial year. The amount of revenue recognised takes into account any amendments to
appropriations approved in the Appropriation (Supplementary Estimates) Act for the year and certain
other unconditional funding adjustments formally approved prior to balance date.
There are no conditions attached to the funding from the Crown. However, the Ministry can incur
expenses only within the scope and limits of its appropriations.
The fair value of Revenue Crown has been determined to be equivalent to the funding entitlement.
Other revenue
Other departmental and third-party revenue is predominantly derived from the undertaking of
historical projects on a full cost-recovery basis, contributions to other one-off projects, and
reimbursement for costs of staff on secondment to other agencies. Revenue is recognised when
earned and is reported in the financial period to which it relates.
The sale of publications is recognised when the product is sold to the customer. The recorded revenue
is the gross amount of the sale.
Capital charge
The capital charge is recognised as an expense in the period to which the charge relates.
Grant expenditure
Discretionary grants are those grants where the Ministry has no obligation to award on receipt of the
grant application. They are recognised as expenditure when approved by the Grants Approvals
Committee and the approval has been communicated to the applicant. The Ministry’s grants awarded
have no substantive conditions attached.
Foreign Currency transactions
Foreign currency transactions (including those for which forward foreign exchange contracts are held)
are translated into NZ$ (the functional currency) using the spot exchange rates 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 surplus or deficit.
Leases
Operating leases
An operating lease is a lease that does not transfer substantially all the risks and rewards incidental
to ownership of an asset to the lessee. Lease payments under an operating lease are recognised as
an expense on a straight-line basis over the lease term. Lease incentives received are recognised in
the surplus or deficit as a reduction of rental expense over the lease term.
Financial instruments
Financial assets and financial liabilities are initially measured at fair value plus transaction costs,
unless they are carried at fair value through surplus or deficit, in which case the transaction costs are
recognised in the surplus or deficit.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, and other shortterm highly liquid investments with original maturities of three months or less.
The Ministry is only permitted to expend its cash and cash equivalents within the scope and limits of
its appropriations.
Ministry for Culture and Heritage Annual Report 2014-15/ 57
Debtors and other receivables
Debtors and other receivables are recorded at their face value, less any provision for impairment.
Impairment of a receivable is established when there is objective evidence that the Ministry will not
be able to collect amounts due according to the original terms of the receivable. Significant financial
difficulties of the debtor, probability that the debtor will enter into bankruptcy, receivership or
liquidation, and default in payments are considered indicators that the debtor is impaired. The amount
of the impairment is the difference between the asset’s carrying amount and the present value of
estimated future cash flows, discounted using the original effective interest rate. The carrying amount
of the asset is reduced through the use of a provision for impairment account, and the amount of the
loss is recognised in the surplus or deficit. Overdue receivables that are renegotiated are reclassified
as current (that is, not past due).
Property, plant and equipment
Property, plant and equipment consists of the following asset classes: artwork, leasehold
improvements, office furniture, office equipment, computer equipment and motor vehicles.
Property, plant and equipment is measured at cost less accumulated depreciation and impairment
losses.
Individual assets, or groups of assets, are capitalised if their cost is greater than $2,000. The value of
an individual asset that is less than $2,000 and is part of a group of similar assets is capitalised. In
addition, information communications technology (ICT) assets that individually cost more than $1,000
each and have a useful life greater than 12 months are capitalised.
Additions
The cost of an item of property, plant and equipment is recognised as an asset only when it is probable
that future economic benefits or service potential associated with the item will flow to the Ministry and
the cost of the item can be measured reliably.
Work in progress is recognised at cost less impairment and is not depreciated.
In most instances, an item of property, plant or equipment is recognised at its cost. Where an asset
is acquired through a non-exchange transaction, it is recognised at its fair value as at the date of
acquisition.
Disposals
Gains and losses on disposals are determined by comparing the disposal proceeds with the carrying
amount of the asset. Gains and losses on disposals are reported net in the surplus or deficit.
Subsequent costs
Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future
economic benefits or service potential associated with the item will flow to the Ministry and the cost
of the item can be measured reliably.
The costs of day-to-day servicing of property, plant and equipment are recognised in the surplus or
deficit as they are incurred.
Depreciation
Depreciation is provided on a straight-line basis on all property, plant and equipment, at rates that will
write-off the cost (or valuation) of the assets to their estimated residual values over their useful lives.
The useful lives and associated depreciation rates of major classes of assets have been estimated
as follows:
Office Furniture
Office Equipment
Computer Equipment – PC based
Computer Equipment – other than PCs
Works of Art
5 years
5 years
3 – 5 years
3 – 5 years
100 years
20%
20%
20% - 33%
20% - 33%
1%
Leasehold improvements are depreciated over the unexpired period of the lease or the estimated
remaining useful lives of the improvements, whichever is the shorter.
Ministry for Culture and Heritage Annual Report 2014-15/ 58
The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial
year end.
Intangible assets
Software acquisition
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and
bring into use the specific software. Software is capitalised if its cost is greater than $2,000.
Costs associated with maintaining computer software are recognised as expenses when incurred.
Staff training costs are recognised as expenses when incurred.
Costs of software updates or upgrades are only capitalised when they increase the usefulness or
value of the software.
Costs associated with development and maintenance of the Ministry’s websites are recognised as an
expense when incurred.
Amortisation
The carrying value of an intangible asset with a finite life is amortised on a straight-line basis over its
useful life. Amortisation begins when the asset is available for use and ceases at the date that the
asset is derecognised. The amortisation charge for each period is recognised in the surplus or deficit.
The useful lives and associated amortisation rates of major classes of intangible assets have been
estimated as follows:
Acquired Computer Software
3 years
33%
Impairment of property, plant and equipment, and intangible assets
The Ministry does not hold any cash-generating assets. Assets are considered cash-generating
where their primary objective is to generate a commercial return.
Non-cash generating assets
Property, plant and equipment and intangible assets held at cost that have a finite useful life are
reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s
carrying amount exceeds its recoverable service amount. The recoverable service amount is the
higher of an asset’s fair value less costs to sell and value in use.
Value in use is depreciated replacement cost for an asset where future economic benefits or service
potential of the asset are not primarily dependent on the asset’s ability to generate net cash inflows
and where the Ministry would, if deprived of the asset, replace its remaining future economic benefits
or service potential.
If an asset’s carrying amount exceeds its recoverable amount, the asset is impaired and the carrying
amount is written down to the recoverable amount. The impairment loss is recognised in the surplus
or deficit. The reversal of an impairment loss is also recognised in the surplus or deficit.
Creditors and other payables
Creditors and other payables are non-interest bearing and are normally settled on 30-day terms.
Creditors and other payables are recorded at their face value.
Employee entitlements
Short-term employee entitlements
Employee entitlements expected to be settled within 12 months of balance date are measured at
nominal values based on accrued entitlements at current rates of pay.
These include salaries and wages accrued up to balance date, annual leave and time off in lieu earned
but not yet taken at balance date, and retiring and long service leave entitlements expected to be
settled within 12 months.
A liability and an expense are recognised for bonuses where the Ministry has a contractual obligation
Ministry for Culture and Heritage Annual Report 2014-15/ 59
or where there is a past practice that has created a constructive obligation.
Long-term employee entitlements
Employee entitlements that are due to be settled beyond 12 months after the end of the reporting
period in which the employee renders the related service, such as long service leave and retiring
leave, are calculated on an actuarial basis. The calculations are based on:

likely future entitlements accruing to staff, based on years of service, years to entitlement, the
likelihood that staff will reach the point of entitlement, and contractual entitlements information;
and

the present value of the estimated future cash flows.
Expected future payments are discounted using market yields on government bonds at balance date
with terms to maturity that match, as closely as possible, the estimated future cash outflows for
entitlements. The inflation factor is based on the expected long-term increase in remuneration for
employees. The Ministry uses the risk-free discount rates and consumer price index assumptions
published annually by The Treasury.
Presentation of employee entitlements
Annual leave, long service leave and retirement gratuities expected to be settled within 12 months of
balance date are classified as a current liability. All other employee entitlements are classified as a
non-current liability.
The Ministry does not recognise any provision for sick leave as employees are not entitled to accrue
sick leave during their period of employment.
Superannuation schemes
Defined contribution schemes
Obligations for contributions to the State Sector Retirement Savings Scheme, Kiwisaver, Global
Retirement Trust Superannuation and Government Superannuation Fund are accounted for as
defined contribution schemes and are recognised as an expense in the surplus or deficit as incurred.
Equity
Equity is the Crown’s investment in the Ministry and is measured as the difference between total
assets and total liabilities. Equity is classified as taxpayers’ funds.
Commitments
Expenses yet to be incurred on non-cancellable contracts that have been entered into on or before
balance date are disclosed as commitments to the extent that there are equally unperformed
obligations. Information on non-cancellable capital and lease commitments are reported in the
statement of commitments.
Cancellable commitments that have penalty or exit costs explicit in the agreement on exercising that
option to cancel are included in the statement of commitments at the lower of the remaining
contractual commitment and the value of that penalty or exit cost.
Goods and services tax
All items in the financial statements, including appropriation statements, are stated exclusive of goods
and service tax (GST), except for receivables and payables, which are stated on a GST-inclusive
basis. Where GST is not recoverable as input tax, then it is recognised as part of the related asset or
expense.
The net amount of GST recoverable from, or payable to, the Inland Revenue Department (IRD) is
included as part of receivables or payables in the statement of financial position.
The net GST paid to, or received from the IRD, including the GST relating to investing and financing
activities, is classified as an operating cash flow in the statement of cash flows.
Commitments and contingencies are disclosed exclusive of GST.
Ministry for Culture and Heritage Annual Report 2014-15/ 60
Income tax
Government departments are exempt from income tax as public authorities. Accordingly, no provision
has been made for income tax.
Statement of cost accounting policies
The Ministry has determined the cost of outputs using the cost allocation system outlined below.
Direct costs are those directly attributed to an output. Indirect costs are those that cannot be identified
in an economically feasible manner with a specific output.
Direct costs are charged directly to outputs. Indirect costs are allocated to outputs through a twostage process. The costs are assigned to cost centres within the Ministry, and then allocated to
outputs on the basis of the direct staff costs attributable to the outputs of that cost centre. Depreciation
and capital charge are allocated on the basis of asset utilisation. Personnel costs are charged directly
to the cost centre within the output to which they belong and at the time they were incurred.
There have been no changes in cost accounting policies, since the date of the last audited financial
statements.
Critical accounting estimates and assumptions
In preparing these financial statements, estimates and assumptions have been made concerning the
future. These estimates and assumptions may differ from the subsequent actual results. Estimates
and assumptions are continually evaluated and are based on historical experience and other factors,
including expectations of future events that are believed to be reasonable under the circumstances.
There are no estimates and assumptions that have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities within the next financial year.
Critical judgements in applying accounting policies
Management has exercised the following critical judgements in applying accounting policies for the
year ended 30 June 2015.
Operating leases
Determining whether a lease agreement is a finance lease or an operating lease requires judgement
as to whether the agreement transfers substantially all the risks and rewards of ownership to the
Ministry. Judgement is required on various aspects that include, but are not limited to, the fair value
of the leased asset, the economic life of the leased asset, whether or not to include renewal options
in the lease term, and determining an appropriate discount rate to calculate the present value of the
minimum lease payments. Classification as a finance lease means the asset is recognised in the
statement of financial position as property, plant and equipment, whereas with an operating lease
no such asset is recognised. The Ministry has exercised its judgement on the appropriate
classification of equipment leases, and has determined all lease arrangements to be operating
leases.
Budget and forecast figures
Basis of the budget and forecast figures
The budget figures are those included in the Information Supporting the Estimates of Appropriations
(Budget) for the year ending 30 June 2015 and the Supplementary Estimates of Appropriations
(Revised Budget) for the year ending 30 June 2015. The Budget is 2014 Budget Economic and Fiscal
Update (BEFU 2014) and the Revised Budget is SUPPS 2015.
The forecast figures are those included in the Estimates of Appropriations for the year ending 30 June
2016. The Forecast is 2015 Budget and Economic and Fiscal Update (BEFU 2015).
The forecast financial statements have been prepared as required by the Public Finance Act to
communicate forecast financial information for accountability purposes.
The budget and forecast figures are unaudited and have been prepared using the accounting policies
adopted in preparing these financial statements.
The 30 June 2016 forecast figures have been prepared in accordance with PBE FRS 42 Prospective
Financial Statements and comply with PBE FRS 42.
Ministry for Culture and Heritage Annual Report 2014-15/ 61
The forecast financial statements were approved for issue by the Chief Executive on 7 April 2015.
The Chief Executive is responsible for the forecast financial statements, including the appropriateness
of the assumptions underlying them and all other required disclosures.
While the Ministry regularly updates its forecasts, updated forecast financial statements for the year
ended 30 June 2016 will not be published.
Significant assumptions used in preparing the forecast financials
The forecast figures contained in these financial statements reflect the Ministry’s purpose and
activities and are based on a number of assumptions on what may occur during the 2015/16 year.
The forecast figures have been compiled on the basis of existing government policies and Ministerial
expectations at the time the Main Estimates were finalised.
The main assumptions, which were adopted as at 7 April 2015, were as follows:



The Ministry’s activities and output expectations will remain substantially the same as the
previous year focusing on the Government’s priorities.
Operating costs were based on historical experience and other factors that are believed to be
reasonable in the circumstances and are the Ministry’s best estimate of future costs that will
be incurred. Remuneration rates are based on current wages and salary costs, adjusted for
anticipated remuneration changes.
Estimated year-end information for 2014/15 was used as the opening position for the 2015/16
forecasts.
The actual financial results achieved for 30 June 2016 are likely to vary from the forecast information
presented, and the variations may be material.
Since the approval of the forecasts, there have been no significant changes or events that would have
a material impact on the forecasts.
Ministry for Culture and Heritage Annual Report 2014-15/ 62
Note 2: Other Revenue
Actual
2014
$000
Actual
2015
$000
Forecast
2016
$000
16
16
–
Non Crown revenue – WW100
533
903
1,497
Other revenue
317
211
80
Total other revenue
866
1,130
1,577
Publication sales/royalties
Note 3: Personnel costs
Actual
2014
$000
Salaries and wages
Actual
2015
$000
Forecast
2016
$000
11,131
10,514
10,772
Training and development
151
112
150
Employer contributions to defined contribution plans
368
343
383
66
138
156
11,716
11,107
11,461
Other personnel costs
Total personnel costs
Employer contributions to defined contribution plans include contributions to the State Sector
Retirement Savings Scheme, Kiwisaver, Global Retirement Trust Superannuation and Government
Superannuation Fund. The Ministry had 115 full-time equivalent (FTE) positions (including vacancies)
at 30 June 2015 (2014: 117).
Ministry for Culture and Heritage Annual Report 2014-15/ 63
Note 4: Other operating expenses
Actual
2014
$000
Actual
2015
$000
Forecast
2016
$000
Fees to auditor
- fees to Audit New Zealand for audit of financial
statements
57
58
59
–
–
–
413
1,114
1,792
Other occupancy expenses
1,265
226
310
Publicity and research
2,871
216
538
Professional and specialist services – Consultancy
1,794
1,860
956
Professional and specialist services - Contractors
651
1,526
910
Travel and associated expenses
405
315
322
Information communication technology
851
546
704
Transfer to agencies**
260
4,662
900
Other operating expenses
327
478
269
8,894
11,001
6,760
- fees to Audit New Zealand for other services
Rental and leasing expenses*
Total operating expenses
* Leasing expenses include lease costs for ASB House and The Dominion Museum building. The Ministry has occupied ASB
House from 1 April 2012, with the lease term expiring on 31 October 2015. The Ministry has entered into a 4 year lease of the
Dominion Museum Building, with the lease term beginning on 1 December 2014 and expiring on 30 November 2018.
** Transfers to agencies includes Cultural Diplomacy International Programme agencies.
Ministry for Culture and Heritage Annual Report 2014-15/ 64
Note 5: Property, plant and equipment
Computer
Office
Office
Leasehold
equipment equipment furniture improvements Vehicles
$000
$000
$000
$000
$000
Works
of art
$000
Total
$000
Cost
Balance at 1 July 2013
537
151
414
311
262
21
1,696
Additions
271
-
-
-
-
-
271
Disposals
(73)
(3)
(49)
-
(262)
-
(387)
Balance at 30 June
and
1 July 2014
735
148
365
311
-
21
1,580
Additions
34
-
-
-
-
-
34
Disposals
(243)
(88)
-
-
-
-
(331)
-
-
-
63
-
-
63
526
60
365
374
-
21
1,346
Work in progress
Balance at 30 June
2015
Accumulated depreciation and impairment
losses
Balance at 1 July 2013
389
131
404
150
108
2
1,184
Depreciation
expense
105
7
4
119
23
-
258
Elimination on
disposal
(64)
(3)
(49)
-
(131)
-
(247)
Balance at 30 June
and
1 July 2014
430
135
359
269
-
2
1,195
Depreciation
expense
107
6
3
42
-
-
158
(242)
(85)
-
-
-
-
(327)
295
56
362
311
-
2
1,026
At 1 July 2013
148
20
10
161
154
19
512
At 30 June and 1 July
2014
305
13
6
42
-
19
385
At 30 June 2015
231
4
3
63
-
19
320
Elimination on
disposal
Balance at 30 June
2015
Carrying amounts
Leasehold improvements in the course of construction total $63,000 (2014: nil). No other asset classes have assets in the
course of construction.
There are no restrictions over the title of the Ministry’s assets. No assets are pledged as security for liabilities.
Ministry for Culture and Heritage Annual Report 2014-15/ 65
Note 6: Capital charge
The Ministry pays a capital charge to the Crown on its equity (adjusted for memorandum accounts) as
at 30 June and 31 December each year. The capital charge rate for the year ended 30 June 2015 was
8% (2014: 8%).
Note 7: Debtors and other receivables
Actual
2014
$000
Actual
2015
$000
Trade debtors
646
102
Total debtors and other receivables
646
102
Total receivables comprise of exchange transactions.
The carrying value of debtors and other receivables approximates their fair value.
Ageing profile of receivables
All of the Ministry’s debtors and other receivables are current (within 30 days) except for debtors to the
value of $16,870.26 which are between 30 and 90 days old (2014: all current except for debtors to the
value of $40,691.90 which were between 60 and 90 days old).
Impairment of receivables
The Ministry has assessed that no provision for impairment is required as no losses are expected for
the Ministry’s pool of debtors.
Note 8: Creditors and other payables
Actual
2014
$000
Actual
2015
$000
Payables and deferred revenue under exchange transactions
Trade creditors
378
836
Accrued expenses
861
355
1,239
1,191
Total payables and deferred revenue under exchange transactions
Payables and deferred revenue under non-exchange
transactions
GST payable
(21)
153
PAYE payable
143
207
–
3,502
1,361
5,053
Deferred Revenue
Total payables and deferred revenue
Ministry for Culture and Heritage Annual Report 2014-15/ 66
Creditors and other payables are non-interest bearing and are normally settled on 30-day terms.
Therefore, the carrying value of creditors and other payables approximates their fair value.
Note 9: Return of operating surplus
The net surplus for 2014 is based on the net surplus reported in the Ministry’s 2014 Annual Report and
has not been adjusted for changes arising from the transition to the new PBE accounting standards.
The return of operating surplus to the Crown is required to be paid by 31 October of each year. The
total surplus to be returned is $1,435,000 (2014: $662,000) as per the Statement of Comprehensive
Revenue and Expense.
Note 10: Employee entitlements
Actual
2014
$000
Actual
2015
$000
493
611
51
40
544
651
Long service leave
51
42
Retirement leave
25
30
Total non-current portion
76
72
620
723
Current portion
Annual leave
Long service leave
Total current portion
Non-current portion
Total employee entitlements
The measurement of the long service and retirement leave obligations depends on a number of factors
that are determined on an actuarial basis using a number of assumptions. Two key assumptions used
in calculating this liability include the discount rate and the salary inflation factor. Any changes in these
assumptions will affect the carrying amount of the liability.
The discount rate is based on New Zealand government bond data at 30 June 2015. The salary
inflation factor has been determined after considering historical patterns and after obtaining advice
from an independent actuary. The Ministry uses the risk-free discount rates and consumer price index
assumptions published annually by The Treasury.
If the discount rate were to differ by 1% from the Ministry’s estimates, with all other factors held
constant, the carrying amount of the liability would be an estimated $4,600 higher/lower.
If the salary inflation factor were to differ by 1% from the Ministry’s estimates, with all other factors held
constant, the carrying amount of the liability would be an estimated $5,000 higher/lower.
Ministry for Culture and Heritage Annual Report 2014-15/ 67
Discount rates and salary inflation applied:
2015
%
Employee entitlement variables
2016
%
2017
%
Discount rates
2.93
2.81
4.39
Salary inflation
1.50
3.00
3.00
Note 11: Related party transactions
The Ministry is a wholly owned entity of the Crown. The Government significantly influences the roles
of the Ministry, as well as being its major source of revenue. All related party transactions have been
entered into on an arm’s length basis.
Related party disclosures have not been made for transactions with related parties that are within a
normal supplier or client/recipient relationship on terms and conditions no more or less favourable than
those that it is reasonable to expect the Ministry would have adopted in dealing with the party at arm’s
length in the same circumstances. Further, transactions with other government agencies (for example,
government departments and Crown entities) are not disclosed as related party transactions when
they are consistent with the normal operating arrangements between government agencies and
undertaken on the normal terms and conditions for such transactions.
Significant transactions with government-related entities
The Ministry has received funding from the Crown of $22.713 million (2014: $20.809 million) to provide
services to the public for the year ended 30 June 2015.
Transactions with key management personnel and their close family members
Key management personnel compensation
Salaries and other short-term employee benefits
Other long-term benefits
Total key management personnel compensation
Actual
2014
$000
Actual
2015
$000
955
1,018
3
3
958
1,021
Key management personnel of the Ministry comprise the Minister for Arts, Culture and Heritage, the
Minister of Broadcasting, the Minister for Sport and Recreation, the Chief Executive, and the four
members of the Ministry Leadership Team.
The above key management personnel compensation excludes the remuneration and other benefits
the Minister for Arts, Culture and Heritage, the Minister of Broadcasting, and the Minister for Sport and
Recreation receives. The Ministers’ remuneration and other benefits are not received only for their role
as a member of key management personnel of the Ministry. The Ministers’ remuneration and other
benefits are set by the Remuneration Authority under the Civil List Act 1979 and are paid under
Permanent Legislative Authority, and not paid by the Ministry.
There are two close family members of key management personnel employed by the Ministry. The
terms and conditions of these arrangements are no more favourable than the Ministry would have
adopted if there were no relationship to key management personnel.
Ministry for Culture and Heritage Annual Report 2014-15/ 68
Note 12: Financial instrument categories
The carrying amounts of financial assets and financial liabilities in each of the financial instrument
categories are as follows:
Actual
2014
$000
Actual
2015
$000
2,951
4,333
646
102
3,597
4,435
1,361
5,053
Loans and receivables
Cash and cash equivalents
Debtors and other receivables
Total loans and receivables
Financial liabilities measured at amortised cost
Creditors and other payables
Note 13: Explanation of major variances against budget
Explanations for major variances from the Ministry’s budgeted figures in the Information Supporting
the Estimates are as follows:
Statement of comprehensive income
Crown Revenue
Crown revenue was $5.262 million higher than originally budgeted due to transfers of WW100 funding
brought forward to 2014/15 from out years.
Other operating expenses
Other operating expenses were $2.821 million higher than budget due to the timing of projects,
including First World War commemorations.
Statement of financial position
Cash and cash equivalents
Cash and cash equivalents were $1.545 million greater than budget due the surplus of $1.475 million.
Prepayments
Prepayments were $3.709 million higher than originally budgeted due to a large prepayment of rent.
Creditors and other payables
Creditors and other payables is $3.753 million higher than originally budgeted due to revenue drawn
down in advance for the prepayment of rent.
Statement of cash flows
Receipts from the Crown were $8.764 million greater than budget due to the unexpected need to pay
rental in advance, the bringing forward of revenue related to WW100 projects and transfers from
2013/14 into 2014/15.
Ministry for Culture and Heritage Annual Report 2014-15/ 69
Note 14: Events after the balance date
No event has occurred since the end of the financial period (not otherwise dealt with in the financial
statements) that has affected, or may significantly affect, the Ministry’s operations or state of affairs for
the year ended 30 June 2015.
Note 15: Adjustments arising on transition to the new PBE accounting
standards
Reclassification adjustments
There have been no reclassifications on the face of the financial statements in adopting the new PBE
accounting standards.
Recognition and measurement adjustments
There have been no recognition and measurement adjustments on the face of the financial statements
in adopting the new PBE accounting standards.
Ministry for Culture and Heritage Annual Report 2014-15/ 70
Non-departmental statements and schedules
for the year ended 30 June 2015
The following non-departmental statements and schedules record the income, expenses, assets,
liabilities, commitments, contingent liabilities, contingent assets, and trust accounts that the Ministry
manages on behalf of the Crown.
Schedule of non-departmental revenue
for the year ended 30 June 2015
Budget*
2015
$000
Revised
Budget*
2015
$000
2
–
–
–
Miscellaneous
203
–
203
203
Total non-departmental revenue
205
–
203
203
Actual
2014
$000
Actual
2015
$000
VOTE ARTS, CULTURE AND HERITAGE
Broadcasting Standards Authority – fines
*The statement of accounting policies provides explanations of these figures which are not subject to audit.
Explanations of major variances against budget are provided in note 5.
The accompanying notes form part of these financial statements.
For a full understanding of the Crown’s financial position and the results of its operations for the year, refer to the
consolidated Financial Statements of the Government for the year ended 30 June 2015.
Ministry for Culture and Heritage Annual Report 2014-15/ 71
Schedule of non-departmental expenses
for the year ended 30 June 2015
Budget*
2015
$000
Revised
Budget*
2015
$000
18,444
10,961
10,961
11,847
324,617
299,279
304,754
311,579
189
196
196
189
51,308
46,565
47,387
50,077
394,558
357,001
363,298
373,692
Actual
2014
$000
Actual
2015
$000
VOTE ARTS, CULTURE & HERITAGE AND
VOTE SPORT AND RECREATION
Grants, subsidy and benefit expenses
Other operating expenses
Depreciation – buildings
GST input expense
Total non-departmental expenses
*The statement of accounting policies provides explanations of these figures which are not subject to audit.
Explanations of major variances against budget are provided in note 5.
The accompanying notes form part of these financial statements.
For a full understanding of the Crown’s financial position and the results of its operations for the year, refer to the
consolidated Financial Statements of the Government for the year ended 30 June 2015.
Ministry for Culture and Heritage Annual Report 2014-15/ 72
Schedule of non-departmental assets
as at 30 June 2015
Note
Actual
2014
$000
Budget*
2015
$000
Revised
Budget*
2015
$000
Actual
2015
$000
ASSETS
Current assets
Cash and cash
equivalents
4
Debtors and other
receivables
Total current assets
19,067
8,443
15,640
12,119
–
20
20
–
19,067
8,463
15,660
12,119
Non-current assets
Property, plant and
equipment
Land
3
14,679
37,262
30,682
26,105
Buildings
2
9,221
11,849
11,149
7,920
Total non-current assets
23,900
49,111
41,831
34,025
Total non-departmental
assets
42,967
57,574
57,491
46,144
*The statement of accounting policies provides explanations of these figures which are not subject to audit.
Explanations of major variances against budget are provided in note 5.
The accompanying notes form part of these financial statements.
For a full understanding of the Crown’s financial position and the results of its operations for the year, refer to the
consolidated Financial Statements of the Government for the year ended 30 June 2015.
Ministry for Culture and Heritage Annual Report 2014-15/ 73
Schedule of non-departmental liabilities
as at 30 June 2015
Actual
2014
$000
Note
Budget*
2015
$000
Revised
Budget*
2015
$000
Actual
2015
$000
LIABILITIES
Current liabilities
Creditors and other
payables
4
5,202
200
200
89
Total current liabilities
5,202
200
200
89
Total non-departmental
liabilities
5,202
200
200
89
*The statement of accounting policies provides explanations of these figures which are not subject to audit.
Explanations of major variances against budget are provided in note 5.
The accompanying notes form part of these financial statements.
For a full understanding of the Crown’s financial position and the results of its operations for the year, refer to the
consolidated Financial Statements of the Government for the year ended 30 June 2015.
Ministry for Culture and Heritage Annual Report 2014-15/ 74
Schedule of non-departmental contingent liabilities
and contingent assets
as at 30 June 2015
Unquantifiable contingent liabilities
The Ministry on behalf of the Crown has no unquantifiable contingent liabilities at 30 June 2015. (2014:
An unsolicited assessment from the New Zealand Fire Service Commission was received in
September 2010. This related to fire service levies on arts exhibitions covered by the Government
Indemnity of Touring Exhibitions scheme. This issue has been resolved and no liability was due.)
Quantifiable contingent liabilities
Claims have been made to the Ministry on behalf of the Crown, under the Public Works Act 1981 for
compensation resulting from the acquisition of the easement taken under section 18 of the National
War Memorial Park (Pukeahu) Empowering Act 2012 enabling part of the Park to be constructed on
land owned by the claimants. Landscaping related to the Park has been undertaken on this land.
Section 18 of the National War Memorial Park (Pukeahu) Empowering Act 2012 entitles the
landowners to compensation under the Public Works Act 1981 for the taking of this easement. The
compensation claimed is $4.604 million. The Ministry has received legal advice that, on the legal basis
of the claims, the compensation payable will likely be less than the amounts claimed.
(2014: nil).
Contingent assets
The Ministry on behalf of the Crown has no contingent assets (2014: nil).
The accompanying notes form part of these financial statements.
For a full understanding of the Crown’s financial position and the results of its operations for the year, refer to the
consolidated Financial Statements of the Government for the year ended 30 June 2015.
Ministry for Culture and Heritage Annual Report 2014-15/ 75
Schedule of non-departmental commitments
as at 30 June 2015
The Ministry on behalf of the Crown has no non-cancellable operating lease commitments (2014: nil).
Capital commitments
Capital commitments are the aggregate amount of capital expenditure contracted for the acquisition of
property, plant, and equipment.
Actual
2014
$000
Actual
2015
$000
Property, plant, and equipment
14,463
–
Total capital commitments
14,463
–
Capital commitments
The accompanying notes form part of these financial statements.
For a full understanding of the Crown’s financial position and the results of its operations for the year, refer to the
consolidated Financial Statements of the Government for the year ended 30 June 2015.
Ministry for Culture and Heritage Annual Report 2014-15/ 76
Statement of trust monies
for the year ended 30 June 2015
Opening
balance
2014
$000
New Zealand
Historical Atlas
Contributions Distributions
$000
$000
Revenue Expenditure
$000
$000
Closing
balance
2015
$000
142
-
-
5
-
147
New Zealand History
Research
1,069
-
(138)
39
-
970
New Zealand Oral
History Awards
1,512
-
(68)
55
-
1,499
14
-
-
-
-
14
474
-
-
19
(203)
290
3,211
-
(206)
118
(203)
2,920
Dictionary of New
Zealand Biography
War History
Total
New Zealand Historical Atlas Trust
This trust was established to hold New Zealand Lottery Grants Board funds, donations and royalties
from sales to be used for the production of the New Zealand Historical Atlas and subsidiary volumes.
In 2015 the Trust earned $5,000 in royalties and interest (2014: $5,000).
New Zealand History Research Trust
This trust was established to hold New Zealand Lottery Grants Board funds to be used to make awards
to individuals and groups for historical research and writing projects. In 2015 the Trust earned $39,000
in interest (2014: $44,000). During 2014, 10 awards were made for a total of $138,000 (2014: 9 awards:
$151,000).
New Zealand Oral History Awards
This trust was established to hold funds from the Government of the Commonwealth of Australia, gifted
to New Zealand in 1990 specifically to gather oral histories of importance to this country. The income
from these funds is used to promote oral history in New Zealand. In 2015, the Trust earned $55,000 in
interest (2014: $65,000). During 2015, 21 awards were made for a total of $77,000. Two awards for a
total of $9,000 were returned. (2014: 22 awards; $80,000).
Dictionary of New Zealand Biography Trust
This trust was established to hold funds from the New Zealand Lottery Grants Board, sales of
publications, and private sponsorship or fundraising for the production of the Dictionary of New Zealand
Biography and subsidiary volumes.
War History Trust
This trust was established to hold funds bequeathed to the Ministry by the estate of Mr J B Watson, a
long-time supporter of research into New Zealand’s military history. The funds and any interest income
are to be used for the researching and writing of works on New Zealand’s involvement in overseas
conflicts. In 2015 the trust earned $19,000 in interest (2014: $24,000).
The accompanying notes form part of these financial statements.
For a full understanding of the Crown’s financial position and the results of its operations for the year, refer to the
consolidated Financial Statements of the Government for the year ended 30 June 2015.
Ministry for Culture and Heritage Annual Report 2014-15/ 77
Notes to the non-departmental schedules and
statements
Note 1: Statement of accounting policies
Reporting Entity
These non-departmental schedules and statements present financial information on public funds that
are managed by the Ministry on behalf of the Crown.
These non-departmental balances are consolidated into the Financial Statements of the Government
for the year ended 30 June 2015. For a full understanding of the Crown’s financial position, results of
operations, and cash flows for the year, refer to the Financial Statements of the Government for the
year ended 30 June 2015.
Basis of Preparation
The non-departmental schedules and statements have been prepared in accordance with the
accounting policies of the Financial Statements of the Government, Treasury Instructions, and
Treasury Circulars.
Measurement and recognition rules applied in the preparation of these non-departmental statements
and schedules are consistent with New Zealand generally accepted accounting practice (Tier 1 Public
Sector Public Benefit Entity Accounting Standards) as appropriate for public benefit entities.
These non-departmental statements and schedules are the first financial statements prepared in
accordance with the new PBE accounting standards. There are no material adjustments arising on
transition to the new PBE accounting standards.
Significant Accounting Policies
Revenue
Revenue from fines and other receipts is recognised when received.
Grant expenditure
Non-discretionary grants are those awarded if the grant application meets specified criteria. They 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. They are recognised as expenditure when approved by the grants approvals
committee and the approval has been communicated to the applicant.
Grants with substantive conditions are recognised as an expense at the earlier of the grant payment
date or when the grant conditions have been satisfied.
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 nondepartmental revenue or expenses.
Goods and services tax
All items in the financial statements, including appropriation statements, are stated exclusive of goods
and services tax (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 Financial Statements
of the Government.
Ministry for Culture and Heritage Annual Report 2014-15/ 78
Cash and cash equivalents
Cash and cash equivalents include cash on hand, and deposits held at call with banks with maturities
of three months or less.
Debtors and other receivables
Debtors and other receivables are initially measured at fair value and subsequently measured at
amortised cost using the effective interest method, less any provision for impairment.
Impairment of a receivable is established when there is objective evidence that the Ministry will not be
able to collect amounts due according to the original terms of the receivable. Significant financial
difficulties of the debtor, probability that the debtor will enter into bankruptcy, receivership or liquidation,
and default in payments are considered indicators that the debtor is impaired. The amount of the
impairment is the difference between the asset’s carrying amount and the present value of estimated
future cash flows, discounted at the original effective interest rate. The carrying amount of the asset is
reduced through the use of an allowance account, and the amount of the loss is recognised in the
schedule of non-departmental expenses. When a debt is uncollectible, it is written-off against the
allowance account for debtors. Overdue receivables that are renegotiated are reclassified as current
(that is, not past due).
Property, plant and equipment
Property, plant and equipment administered by the Ministry on behalf of the Crown are the National
War Memorial and the Massey Memorial. These assets are carried at fair value less subsequent
impairment losses and, for non-land assets, less subsequent accumulated depreciation. They are
revalued every three years. If it is established during the intervening period that a 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.
The Ministry on behalf of the Crown currently depreciates buildings at 2% per annum.
Creditors and other payables
Creditors and other payables are recorded at their face value.
Commitments
Future expenses and liabilities to be incurred on non-cancellable contracts that have been entered into
at balance date are disclosed as commitments to the extent that there are equally unperformed
obligations. Information on non-cancellable capital and lease commitments are reported in the
Schedule of Commitments.
Cancellable commitments that have penalty or exit costs in the agreement on exercising that option to
cancel are included in the statement of commitments at the lower of the remaining contractual
commitment and the value of that penalty or exit cost.
Budget figures
The budget figures are those included in the Information Supporting the Estimates of Appropriations
(Budget) for the year ending 30 June 2015 and the Supplementary Estimates of Appropriations
(Revised Budget) for the year ending 30 June 2015. The Budget is 2014 Budget Economic and Fiscal
Update (BEFU 2014) and the Revised Budget is SUPPS 2015. The budget figures have been
prepared in accordance with NZ GAAP, using accounting policies that are consistent with those
adopted in preparing these financial statements.
Critical accounting estimates and assumptions
In preparing these financial statements, estimates and assumptions have been made concerning the
future. These estimates and assumptions may differ from the subsequent actual results. Estimates
and assumptions are continually evaluated and are based on historical experience and other factors,
including expectations of future events that are believed to be reasonable under the circumstances.
There are no estimates and assumptions that have a significant risk of causing a material adjustment
Ministry for Culture and Heritage Annual Report 2014-15/ 79
to the carrying amounts of assets and liabilities within the next financial year.
Trust Monies
The Ministry administers trust monies on behalf of the Crown under Part VII of the Public Finance Act
1989. Under the Act, and by delegation from the Secretary to the Treasury, trust money can only be
invested on deposit with New Zealand registered banks or in New Zealand Government stock. Trust
money is also managed so that there is no significant concentration of credit risk. Interest rate risk is
managed by investing across a wide range of maturity dates, subject to liquidity requirements.
Ministry for Culture and Heritage Annual Report 2014-15/ 80
Note 2: Buildings
Massey
Memorial
$000
National
War
Memorial
$000
Total
buildings
$000
1,520
8,079
9,599
–
1,741
1,741
(820)
(2,600)
(3,420)
700
7,220
7,920
Balance at 1 July 2013
30
159
189
Depreciation expense
30
159
189
Balance at 30 June and 1 July 2014
60
318
378
Depreciation expense
30
159
189
(90)
(477)
(567)
Cost or valuation
Balance at 1 July 2013, 30 June and 1 July 2014
Additions
Revaluation
Balance at 30 June 2015
Accumulated depreciation and impairment losses
Depreciation reversal on revaluation
–
–
–
At 1 July 2013
1,490
7,751
9,241
At 30 June and 1 July 2014
1,460
7,761
9,221
700
7,220
7,920
Balance at 30 June 2015
Carrying amounts
At 30 June 2015
The National War Memorial and Massey Memorial were revalued as at 30 June 2015 by Aon Risk
Solutions (an independent registered valuer) using depreciated building cost in accordance with NZ
IAS PBE standards. The Ministry on behalf of the Crown revalues the memorials every three years.
The balance of the revaluation reserve at 30 June 2015 is nil. (2014: The National War Memorial and
Massey Memorial were revalued as at 30 June 2012 by Beca Valuations (an independent registered
valuer) using depreciated building cost in accordance with NZ IAS 16. The Ministry on behalf of the
Crown revalues the memorials every three years. The balance of the revaluation reserve at 30 June
2014 is $1.912 million).
Ministry for Culture and Heritage Annual Report 2014-15/ 81
Note 3: Land
Massey
Memorial
$000
National
War
Memorial
$000
New Zealand
Memorial
Park
$000
Total
land
$000
560
5,500
5,890
11,950
Additions
–
–
7,679
7,679
Disposals
–
–
(4,950)
(4,950)
560
5,500
8,619
14,679
Additions
–
–
14,673
14,673
Disposals
–
–
–
–
Cost or valuation (and carrying
amounts)
Balance at 1 July 2013
Balance at 30 June and 1 July 2014
Revaluation
255
(1,000)
(2,502)
(3,247)
Balance at 30 June 2015
815
4,500
20,790
26,105
The National War Memorial, New Zealand Memorial Park and the Massey Memorial were revalued as
at 30 June 2015 by Aon Risk Solutions (an independent valuer) using market-based evidence in
accordance with NZ IAS PBE accounting standards. The Ministry on behalf of the Crown revalues the
memorials every three years. The balance of the revaluation reserve at 30 June 2015 is $1.503 million.
(2014: The National War Memorial and Massey Memorial were revalued as at 30 June 2012 by Beca
Valuations (an independent valuer) using market-based evidence in accordance with NZ IAS 16. The
Ministry on behalf of the Crown revalues the memorials every three years. The balance of the
revaluation reserve at 30 June 2014 is $4.750 million. New Zealand Memorial Park was not revalued
at 30 June 2012, due to the ongoing developments at Buckle Street in Wellington).
.
Ministry for Culture and Heritage Annual Report 2014-15/ 82
Note 4: Financial Instruments
The carrying amounts of financial assets and financial liabilities in each of the financial instrument
categories are as follows:
Actual
2014
$000
Actual
2015
$000
19,067
12,119
–
–
19,067
12,119
5,202
89
Loans and receivables
Cash and cash equivalents
Debtors and other receivables
Total loans and receivables
Financial liabilities measured at amortised cost
Creditors and other payables
Credit risk
Credit risk is the risk that a third party will default on its obligation, causing a loss to be incurred. Credit
risk arises from debtors and deposits with banks. Funds must be deposited with Westpac, a registered
bank. The maximum credit exposure for each class of financial instrument is represented by the total
carrying amount of cash and cash equivalents and net debtors. There is no collateral held as security
against these financial instruments, including those instruments that are overdue or impaired. Other
than Westpac bank, there are no significant concentrations of credit risk.
Note 5: Explanations of major variances against budget
The major variances from the Ministry’s non-departmental estimated figures in the Main Estimates are
as follows:
Schedule of revenue and expenses
Regional Museums
This appropriation was $3.609 million less than budget due to timing of demand for capital funding for
regional museums.
Sport and Recreation Programmes
This appropriation was $5.355 million more than budget due to extra funding from government to
support hosting the ICC Cricket World Cup 2015 and the costs of constructing the Hagley Oval
Pavilion.
Schedule of non-departmental assets
Land
Land was $11.157 million less than budget due to remeasurement of the Massey Memorial, the
National War Memorial and Pukeahu National War Memorial Park and the timing of land improvements
at Pukeahu National War Memorial Park.
Ministry for Culture and Heritage Annual Report 2014-15/ 83
Note 6: Adjustments arising on transition to the new PBE accounting
standards
Reclassification adjustments
There have been no reclassifications on the face of the financial statements in adopting the new PBE
accounting standards.
Recognition and measurement adjustments
There have been no recognition and measurement adjustments on the face of the financial statements
in adopting the new PBE accounting standards.
Ministry for Culture and Heritage Annual Report 2014-15/ 84
Appropriation statements
The following statements report information about the expenses and capital expenditure incurred
against each appropriation administered by the Ministry for the year ended 30 June 2015.
Statement of departmental expenses and capital
expenditure against appropriations
for the year ended 30 June 2015
Actual Appropriation
Actual Location of
expenditure
voted* expenditure end-of-year
2014
2015
2015 performance
$000
$000
$000 information**
VOTE ARTS, CULTURE AND
HERITAGE
Appropriations for output expenses
Heritage services
10,612
10,743
9,495
Delivery of Going Digital programme
4,255
–
–
Policy advice, monitoring of funded
agencies and ministerial services
MCOA**
5,522
6,076
5,576
773
850
781
- Monitoring of funded agencies
1,767
1,944
1,784
- Policy advice
2,982
3,282
3,011
–
6,674
6,586
20,389
23,493
21,657
- Ministerial servicing
First World War Centenary
Total Vote Arts, Culture and
Heritage
1
1
1
*This includes adjustments made in the Supplementary Estimates and Cabinet decisions made before 30 June 2015.
**The numbers in this column represent where the end-of-year performance information has been reported for each
appropriation administered by the Ministry, as detailed below:
1.
2.
3.
4.
5.
6.
7.
The Ministry’s 2014/15 annual report.
Sport New Zealand’s 2014/15 annual report.
Drug Free Sport New Zealand’s 2014/15 annual report.
New Zealand Film Commission’s 2014/15 annual report.
Te Papa’s 2014/15 annual report.
To be reported by the Minister of Ministry for Culture and Heritage in a report appended to this annual report.
No reporting due to an exemption obtained under section 15D of the PFA.
Ministry for Culture and Heritage Annual Report 2014-15/ 85
Actual Appropriation
Actual Location of
expenditure
voted* expenditure end-of-year
2014
2015
2015 performance
$000
$000
$000 information**
VOTE SPORT AND RECREATION
Appropriations for output expenses
Purchase advice and monitoring of
sport and recreation Crown entities
298
318
274
Total Vote Sport and Recreation
298
318
274
20,687
23,811
21,931
317
430
172
Total Vote Arts, Culture & Heritage
and Vote Sport and Recreation
Appropriation for capital
expenditure
Ministry for Culture and Heritage –
Permanent Legislative Authority
1
1
*This includes adjustments made in the Supplementary Estimates and Cabinet decisions made before 30 June 2015.
**The numbers in this column represent where the end-of-year performance information has been reported for each
appropriation administered by the Ministry, as detailed below:
1.
2.
3.
4.
5.
6.
7.
The Ministry’s 2014/15 annual report.
Sport New Zealand’s 2014/15 annual report.
Drug Free Sport New Zealand’s 2014/15 annual report.
New Zealand Film Commission’s 2014/15 annual report.
Te Papa’s 2014/15 annual report.
To be reported by the Minister of Ministry for Culture and Heritage in a report appended to this annual report.
No reporting due to an exemption obtained under section 15D of the PFA.
Ministry for Culture and Heritage Annual Report 2014-15/ 86
Details of departmental multi-year appropriation
for the year ended 30 June 2015
Actual
2014
$000
Actual
2015
$000
Location of
end-of-year
performance
information**
VOTE ARTS, CULTURE AND HERITAGE
CULTURAL DIPLOMACY INTERNATIONAL
PROGRAMME
1
Original appropriation
9,740
9,740
Cumulative adjustments
2,237
2,237
Total adjusted appropriation
11,977
11,977
Cumulative actual expenditure 1 July
11,163
11,488
325
477
11,488
11,965
489
12
Current year actual expenditure
Cumulative actual expenditure 30 June
Appropriation remaining 30 June
The Ministry has a departmental multi-year appropriation for the Cultural Diplomacy International
Programme. The appropriation is for the management and delivery of an international cultural
diplomacy programme through a series of projects and activities primarily focused on Asia and in
locations where New Zealand is pursuing free trade agreements. This appropriation commenced on
1 July 2010 and expires on 30 June 2015.
**The numbers in this column represent where the end-of-year performance information has been reported for each
appropriation administered by the Ministry, as detailed below:
1.
2.
3.
4.
5.
6.
7.
The Ministry’s 2014/15 annual report.
Sport New Zealand’s 2014/15 annual report.
Drug Free Sport New Zealand’s 2014/15 annual report.
New Zealand Film Commission’s 2014/15 annual report.
Te Papa’s 2014/15 annual report.
To be reported by the Minister of Ministry for Culture and Heritage in a report appended to this annual report.
No reporting due to an exemption obtained under section 15D of the PFA.
Ministry for Culture and Heritage Annual Report 2014-15/ 87
Statement of departmental unappropriated
expenditure and capital expenditure
for the year ended 30 June 2015
Expenses and capital expenditure incurred in excess of appropriation
Nil (2014: nil).
Expenses and capital expenditure incurred without appropriation or other authority, or outside
scope of appropriation
Nil (2014: nil).
Breaches of projected departmental net asset schedules
Nil (2014: nil).
Statement of departmental capital injections
for the year ended 30 June 2015
The Ministry has not received any capital injections during the year without, or in excess of, authority.
(2014: nil).
Ministry for Culture and Heritage Annual Report 2014-15/ 88
Statement of non-departmental expenditure and
capital expenditure against appropriations
for the year ended 30 June 2015
Actual
2014
$000
Budget*
2015
$000
Revised
Budget*
2015
$000
Location of
Actual
end-of-year
2015 performance
$000 information**
VOTE ARTS, CULTURE AND
HERITAGE
Appropriations for nondepartmental output expenses
Management of historic places
Antarctic Heritage Trust
526
526
526
526
6
12,988
12,988
12,988
12,988
6
13,514
13,514
13,514
13,514
29,574
29,574
29,574
29,574
6
3,870
5,020
4,610
4,610
6
33,444
34,594
34,184
34,184
13,446
13,446
13,446
13,446
6
Royal New Zealand Ballet
4,384
4,384
4,384
4,384
6
Te Matatini
1,248
1,248
1,248
1,248
6
New Zealand Music Commission
1,578
1,578
1,578
1,578
6
20,656
20,656
20,656
20,656
15,689
15,689
15,689
15,689
6
5,401
5,401
5,401
5,401
6
21,090
21,090
21,090
21,090
New Zealand Historic Places Trust
Museum services
Museum of New Zealand Te Papa
Tongarewa
New Zealand Film Archive
Performing arts services
New Zealand Symphony
Orchestra
Promotion and support of the
arts and film
Creative New Zealand
New Zealand Film Commission
Ministry for Culture and Heritage Annual Report 2014-15/ 89
Location of
end-of-year
Actual
2015 performance
$000 information**
Actual
2014
$000
Budget*
2015
$000
Revised
Budget*
2015
$000
405
79
306
260
405
79
306
260
128,226
128,726
128,390
128,390
6
Television New Zealand
1,182
607
607
607
6
Radio New Zealand International
1,900
1,900
1,900
1,900
6
609
609
609
609
6
2,500
–
–
–
134,417
131,842
131,506
131,506
223,526
221,775
221,256
221,210
Commonwealth war graves
2,540
3,243
2,866
2,866
Contribution to a Fund for
Canterbury Heritage Buildings
2,362
–
–
–
511
527
543
1,471^
7
Regional Museums
6,828
6,667
6,667
3,058
1
Te Hau ki Turanga
–
–
1,000
1,000
6
Treaty of Waitangi
Commemorations
286
288
288
284
7
12,527
10,725
11,364
8,679
Protection of taonga tūturu
Museums and conservation
service providers
7
Public Broadcasting Services
NZ On Air
Broadcasting Standards Authority
Freeview
Total appropriations for output
expenses
Appropriation for other
expenses to be incurred by the
Crown
Development and maintenance of
War graves, historic graves and
monuments
Total appropriations for other
expenses to be incurred by the
Crown
7
Ministry for Culture and Heritage Annual Report 2014-15/ 90
Location of
end-of-year
Actual
2015 performance
$000 information**
Actual
2014
$000
Budget*
2015
$000
Revised
Budget*
2015
$000
Museum of New Zealand Te Papa
Tongarewa
3,000
3,000
3,000
3,000
5
Museum of New Zealand Te Papa
Tongarewa – Capital Works
–
8,000
8,000
8,000
5
169
1,250
2,131
1,742
6
7,679
14,450
16,003
14,673
6
–
500
–
–
1
10,848
27,200
29,134
27,415
246,901
259,700
261,754
257,304
Appropriations for capital
expenditure
National War Memorial – Capital
Investment
National War Memorial Park
First World War Centenary Capital
Expenses
Total appropriations for capital
expenditure
Total non-departmental Vote
Arts, Culture and Heritage
Ministry for Culture and Heritage Annual Report 2014-15/ 91
Location of
end-of-year
Actual
2015 performance
$000 information**
Actual
2014
$000
Budget*
2015
$000
Revised
Budget*
2015
$000
2,239
2,239
2,239
2,239
Sport and recreation
programmes
26,151
19,151
24,506
24,506
High-performance sport
68,192
58,192
58,192
58,192
Total appropriation for
output expenses
96,582
79,582
84,937
84,937
Miscellaneous grants
7
44
44
3
7
Prime Minister’s sport
scholarships
4,250
4,250
4,250
4,250
7
Total appropriations for
other expenses to be
incurred by the Crown
4,257
4,294
4,294
4,253
100,839
83,876
89,231
89,190
VOTE SPORT AND
RECREATION
Appropriations for nondepartmental output
expenses
Sports anti-doping
3
2
2
Appropriations for other
expenses to be incurred by
the Crown
Total non-departmental Vote
Sport and Recreation
^ the item balance includes a remeasurement loss of $942,000. The balance excluding remeasurement is $529,000.
*The statement of accounting policies provides explanations of these figures which are not subject to audit.
**The numbers in this column represent where the end-of-year performance information has been reported for each
appropriation administered by the Ministry, as detailed below:
1.
2.
3.
4.
5.
6.
7.
The Ministry’s 2014/15 annual report.
Sport New Zealand’s 2014/15 annual report.
Drug Free Sport New Zealand’s 2014/15 annual report.
New Zealand Film Commission’s 2014/15 annual report.
Te Papa’s 2014/15 annual report.
To be reported by the Minister of Ministry for Culture and Heritage in a report appended to this annual report.
No reporting due to an exemption obtained under section 15D of the PFA.
Ministry for Culture and Heritage Annual Report 2014-15/ 92
Details of multi-year appropriations
for the year ended 30 June 2015
The Ministry has one current multi-year appropriation for other expenses to be incurred by the Crown.
The Going Digital Targeted Assistance Package multi-year appropriation expired on 30 June 2014.
Going Digital Targeted Assistance Package
This appropriation is for the provision of a targeted assistance package to support the transition of
disadvantaged households to digital television. This appropriation commenced on 1 January 2012 and
expired on 30 June 2014.
Actual
2014
$000
Actual
2015
$000
VOTE ARTS, CULTURE AND HERITAGE
Going Digital Targeted Assistance Package
Original appropriation
16,165
–
Cumulative adjustments
(5,516)
–
Total adjusted appropriation
10,649
–
Cumulative actual expenditure 1 July
6,806
–
Current year actual expenditure
3,716
–
10,522
–
127
–
Cumulative actual expenditure 30 June
Appropriation remaining 30 June
Ministry for Culture and Heritage Annual Report 2014-15/ 93
New Zealand Screen Production Incentive Fund (July 2013 – June 2014)
This appropriation gives provides grant payments to eligible producers of New Zealand feature film,
television or other format screen productions that meet the qualifying tests set by the New Zealand
Film Commission. The New Zealand Film Commission can also co-invest in these productions. This
appropriation commenced on 1 July 2013 and expired on 30 June 2014.
Actual
2014
$000
Actual
2015
$000
63,750
–
(60,058)
–
3,692
–
–
–
Current year actual expenditure
3,643
–
Cumulative actual expenditure 30 June
3,643
–
49
–
VOTE ARTS, CULTURE AND HERITAGE
New Zealand Screen Production Incentive Fund
Original appropriation
Cumulative adjustments
Total adjusted appropriation
Cumulative actual expenditure 1 July
Appropriation remaining 30 June
Ministry for Culture and Heritage Annual Report 2014-15/ 94
New Zealand Screen Production Incentive Fund (July 2014 – June 2019)
This appropriation gives provides grant payments to eligible producers of New Zealand feature film,
television or other format screen productions that meet the qualifying tests set by the New Zealand
Film Commission. The New Zealand Film Commission can also co-invest in these productions. This
appropriation commenced on 1 July 2014 and expires on 30 June 2019.
Actual
2014
$000
Actual Location of end-of2015
year performance
$000
information**
VOTE ARTS, CULTURE AND HERITAGE
New Zealand Screen Production Incentive
Fund
4
Original appropriation
–
83,750
Cumulative adjustments
–
–
Total adjusted appropriation
–
83,750
Cumulative actual expenditure 1 July
–
–
Current year actual expenditure
–
4,536
Cumulative actual expenditure 30 June
–
4,536
Appropriation remaining 30 June
–
79,214
**The numbers in this column represent where the end-of-year performance information has been reported for each
appropriation administered by the Ministry, as detailed below:
1.
2.
3.
4.
5.
6.
7.
The Ministry’s 2014/15 annual report.
Sport New Zealand’s 2014/15 annual report.
Drug Free Sport New Zealand’s 2014/15 annual report.
New Zealand Film Commission’s 2014/15 annual report.
Te Papa’s 2014/15 annual report.
To be reported by the Minister of Ministry for Culture and Heritage in a report appended to this annual report.
No reporting due to an exemption obtained under section 15D of the PFA.
Ministry for Culture and Heritage Annual Report 2014-15/ 95
Statement of non-departmental unappropriated
expenditure and capital expenditure
for the year ended 30 June 2015
Unappropriated Expenditure after Appropriation Unappropriated
expenditure remeasurements
voted
expenditure
2014
2015
2015
2015
$000
$000
$000
$000
VOTE ARTS, CULTURE AND
HERITAGE
Protection of taonga tūturu
Museums and conservation
service providers
126
260
306
50
Total
126
260
306
50
In 2014/15 more work than was expected was carried out by the National Conservation Laboratory.
The number of newly found taonga tūturu continue to increase. The varying length (sometimes multi
years) and complexity of the treatment programmes for each taonga tūturu has made it difficult for the
National Conservation Laboratory to estimate the total cost of treatment for each item and the annual
charges relating to each item.
The original appropriation was $0.079 million for 2014/15. This was not sufficient to cover the total
costs for 2014/15. Actual expenditure to 31 October was $0.129m. At the time the expense was
incurred, although a process was underway to seek approval for the fiscally neutral adjustment, it was
not approved before the end of October. It was subsequently approved and the expenditure to end of
30 June was not unappropriated.
Ministry for Culture and Heritage Annual Report 2014-15/ 96
Independent Auditor’s Report
To the readers of
the Ministry for Culture and Heritage’s
annual report for the year ended 30 June 2015
The Auditor-General is the auditor of the Ministry for Culture and Heritage (the Ministry). The
Auditor-General has appointed me, Stephen Lucy, using the staff and resources of Audit
New Zealand, to carry out the audit on her behalf of:

the financial statements of the Ministry on pages 51 to 70 that comprise the statement of
financial position, statement of commitments, statement of contingent liabilities and
contingent assets as at 30 June 2015, the statement of comprehensive revenue and
expense, statement of changes in equity, and statement of cash flows for the year ended on
that date and the notes to the financial statements that include accounting policies and other
explanatory information;

the performance information prepared by the Ministry for the year ended 30 June 2015
on pages 8 to 22 and 24 to 44;

the statements of expenses and capital expenditure of the Ministry for the year ended
30 June 2015 on pages 85 to 88; and

the schedules of non-departmental activities which are managed by the Ministry on behalf
of the Crown on pages 71 to 84 and 89 to 96 that comprise:



the schedules of: assets; liabilities; commitments; contingent liabilities and assets;
expenses; and revenue for the year ended 30 June 2015;
the statement of trust monies for the year ended 30 June 2015;and
the notes to the schedules that include accounting policies and other explanatory
information
Opinion
In our opinion:

the financial statements of the Ministry:


present fairly, in all material respects:

its financial position as at 30 June 2015; and

its financial performance and cash flows for the year ended on that date;
comply with generally accepted accounting practice in New Zealand and have
been prepared in accordance with Public Benefit Entity Reporting Standards.
Ministry for Culture and Heritage Annual Report 2014-15/ 97

the performance information of the Ministry:

presents fairly, in all material respects, for the year ended 30 June 2015:



what has been achieved with the appropriation; and
the actual expenses or capital expenditure incurred compared with the
appropriated or forecast expenses or capital expenditure;
complies with generally accepted accounting practice in New Zealand.

the statements of expenses and capital expenditure of the Ministry on pages 85 to 88 are
presented fairly, in all material respects, in accordance with the requirements of section
45A of the Public Finance Act 1989.

the schedules of non-departmental activities which are managed by the Ministry on behalf
of the Crown on pages 71 to 84 and 89 to 96 present fairly, in all material respects, in
accordance with the Treasury Instructions:


the assets; liabilities; commitments; contingent liabilities and assets; expenses; and
revenue for the year ended 30 June 2015; and
the statement of trust monies for the year ended 30 June 2015
Our audit was completed on 30 September 2015. This is the date at which our opinion is expressed.
The basis of our opinion is explained below. In addition, we outline the responsibilities of the Chief
Executive and our responsibilities, and we explain our independence.
Basis of opinion
We carried out our audit in accordance with the Auditor-General’s Auditing Standards, which
incorporate the International Standards on Auditing (New Zealand). Those standards require that we
comply with ethical requirements and plan and carry out our audit to obtain reasonable assurance
about whether the information we audited is free from material misstatement.
Material misstatements are differences or omissions of amounts and disclosures that, in our
judgement, are likely to influence readers’ overall understanding of the information we audited. If
we had found material misstatements that were not corrected, we would have referred to them in
our opinion.
An audit involves carrying out procedures to obtain audit evidence about the amounts and
disclosures in the information we audited. The procedures selected depend on our judgement,
including our assessment of risks of material misstatement of the information we audited, whether due
to fraud or error. In making those risk assessments, we consider internal control relevant to the
Ministry’s preparation of the information we audited in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Ministry’s internal control.
An audit also involves evaluating:
Ministry for Culture and Heritage Annual Report 2014-15/ 98

the appropriateness of accounting policies used and whether they have been consistently
applied;

the reasonableness of the significant accounting estimates and judgements made by the
Chief Executive;

the appropriateness of the reported performance information within the Ministry’s
framework for reporting performance;

the adequacy of the disclosures in the information we audited; and

the overall presentation of the information we audited.
We did not examine every transaction, nor do we guarantee complete accuracy of the information
we audited. Also, we did not evaluate the security and controls over the electronic publication of the
information we audited.
We believe we have obtained sufficient and appropriate audit evidence to provide a basis for our
audit opinion.
Responsibilities of the Chief Executive
The Chief Executive is responsible for preparing:

financial statements that present fairly the Ministry’s financial position, financial
performance, and its cash flows, and that comply with generally accepted accounting
practice in New Zealand and Public Benefit Entity Reporting Standards.

performance information that presents fairly what has been achieved with each
appropriation, the expenditure incurred as compared with expenditure expected to be
incurred, and that complies with generally accepted accounting practice in New Zealand.

statements of expenses and capital expenditure of the Ministry, that are presented fairly, in
accordance with the requirements of the Public Finance Act 1989.

schedules of non-departmental activities, in accordance with the Treasury Instructions, that
present fairly those activities managed by the Ministry on behalf of the Crown.
The Chief Executive’s responsibilities arise from the Public Finance Act 1989.
The Chief Executive is responsible for such internal control as is determined is necessary to ensure
that the annual report is free from material misstatement, whether due to fraud or error. The Chief
Executive is also responsible for the publication of the annual report, whether in printed or electronic
form.
Responsibilities of the Auditor
We are responsible for expressing an independent opinion on the information we are required to
audit, and reporting that opinion to you based on our audit. Our responsibility arises from the Public
Audit Act 2001 and the Public Finance Act 1989.
Ministry for Culture and Heritage Annual Report 2014-15/ 99
Independence
When carrying out the audit, we followed the independence requirements of the Auditor-General,
which incorporate the independence requirements of the External Reporting Board.
Other than the audit, we have no relationship with or interests in the Ministry.
S B Lucy
Audit New Zealand
On behalf of the Auditor-General
Wellington, New Zealand
Ministry for Culture and Heritage Annual Report 2014-15/ 100
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To view a copy of this license, please visit
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no departmental or governmental emblem, logo or Coat of
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Attribution to the Crown should be in written form and not by
reproduction of any such emblem, logo or Coat of Arms.
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