Departmental financial statements

Statement of financial performance

For the year ended 30 June 2008
2006-07 Actual $000		Notes	2007-08 Actual $000	2007-08 Main Estimates $000	2007-08 Supp Estimates $000
	Income
506,759	Revenue Crown		589,013	565,490	589,013
28,705	Revenue other	1	28,653	31,680	31,739
116	Gains	2	-	-	-
535,580	Total income		617,666	597,170	620,752
	Expenditure
335,006	Personnel	3	382,123	392,264	394,177
153,393	Operating	4	171,839	142,728	169,186
16,068	Depreciation and impairment	5	16,732	16,963	16,688
21,929	Amortisation and impairment	6	29,010	32,383	28,700
9,803	Capital charge	7	12,001	12,832	12,001
536,199	Total expenditure		611,705	597,170	620,752
(619)	Net surplus/(deficit)		5,961	-	-

The accompanying accounting policies and notes form part of these financial statements.

Refer to Note 22 for explanation of major variances.

Statement of changes in taxpayers' funds

for the year ended 30 June 2008
2006-07 Actual $000		2007-08 Actual $000	2007-08 Main Estimates $000	2007-08 Supp Estimates $000
123,337	Balance at start of year	155,195	160,490	155,195
(619)	Surplus/(deficit) for the year	5,961	-	-
(619)	Total recognised income and expenditure for the year	5,961	-	-
(3,260)	Repayment of surplus to the Crown	(5,961)	-	-
35,987	Capital contribution	47,092	23,063	47,092
(250)	Capital repayment	(2,766)	-	(2,766)
32,477		38,365	23,063	44,326
155,195	Balance at end of year	199,521	183,553	199,521

The accompanying accounting policies and notes form part of these financial statements.

Statement of financial position

as at 30 June 2008
2006-07 Actual $000		Notes	2007-08 Actual $000	2007-08 Main Estimates $000	2007-08 Supp Estimates $000
	Taxpayers' funds
155,195	Taxpayers' funds		199,521	183,553	199,521
155,195	Total taxpayers' funds		199,521	183,553	199,521
	Represented by:
	Current assets
13,534	Cash and cash equivalents		18,677	10,018	11,908
85,389	Debtor Crown		73,092	82,034	70,721
10,384	Other debtors and prepayments	8	10,638	5,787	8,985
1,372	Inventories held for distribution	9	1,792	1,200	1,372
110,679	Total current assets		104,199	99,039	92,986
	Non-current assets
39,070	Property, plant and equipment	5	50,428	47,757	53,217
117,637	Intangible assets	6	163,475	119,548	169,236
156,707	Total non-current assets		213,903	167,305	222,453
267,386	Total assets		318,102	266,344	315,439
	Current liabilities
40,086	Creditors and other payables	10	31,681	19,957	43,560
3,260	Surplus payable to the Crown		5,961	-	-
27,760	Provision for employee benefits	11	36,428	19,730	32,929
565	Provision for other liabilities	12	906	350	-
216	Other financial liabilities	13	260	129	208
49	Derivative financial instruments	14	-	(137)	-
71,936	Total current liabilities		75,236	40,029	76,697
	Non-current liabilities
34,685	Provision for employee benefits	11	36,548	42,525	33,154
5,432	Provision for other liabilities	12	5,468	-	5,292
138	Other financial liabilities	13	1,329	237	775
40,255	Total non-current liabilities		43,345	42,762	39,221
112,191	Total liabilities		118,581	82,791	115,918
155,195	Net assets		199,521	183,553	199,521

The accompanying accounting policies and notes form part of these financial statements.

Refer to Note 22 for explanation of major variances.

Statement of cash flows

for the year ended 30 June 2008
2006-07 Actual $000		Notes	2007-08 Actual $000	2007-08 Main Estimates $000	2007-08 Supp Estimates $000
	Cash flows - operating activities
	Cash provided from: Supply of outputs to
505,593	- Crown		601,310	573,845	603,681
5,785	- government departments		5,873	7,868	6,633
21,678	- third parties		24,357	26,043	27,112
533,056			631,540	607,756	637,426
	Cash applied to: Cost of producing outputs
326,514	- employees		371,624	383,946	390,347
143,163	- suppliers		181,235	155,940	166,587
1,070	- net GST paid		(385)	695	(12)
9,803	- capital charge		12,001	12,832	12,001
480,550			564,475	553,413	568,928
52,506	Net cash inflow from operating activities	15	67,065	54,343	68,503
	Cash flows - investing activities
	Cash provided from:
25	Sale of property, plant and equipment		117	-	100
-	Sale of intangible assets		7,616	-	7,615
25			7,733	-	7,715
	Cash applied to:
14,765	Purchase of property, plant and equipment		28,253	26,989	26,296
58,149	Purchase of intangible assets		82,468	45,420	92,614
72,914			110,721	72,409	118,910
(72,889)	Net cash (outflow) from investing activities		(102,988)	(72,409)	(111,195)
	Cash flows - financing activities
	Cash provided from:
35,987	Capital contribution		47,092	23,063	47,092
35,987			47,092	23,063	47,092
	Cash applied to:
6,815	Repayment of surplus		3,260	5,000	3,260
250	Capital repayment		2,766	-	2,766
7,065			6,026	5,000	6,026
28,922	Net cash inflow from financing activities		41,066	18,063	41,066
8,539	Net increase/(decrease) in cash		5,143	(3)	(1,626)
4,995	Opening cash and cash equivalents		13,534	10,021	13,534
13,534	Closing cash and cash equivalents		18,677	10,018	11,908

The accompanying accounting policies and notes form part of these financial statements.

Statement of commitments

as at 30 June 2008
2006-07 Actual $000		Notes	2007-08 Actual $000
	Capital commitments
13,183	Property, plant and equipment		9,262
2,818	Intangibles		1,921
16,001	Total capital commitments		11,183
	Operating commitments
	Non-cancellable accommodation leases
26,295	Not later than one year		28,000
54,774	Later than one year and not later than five years		87,347
40,191	Later than five years		132,144
121,260	Total accommodation commitments		247,491
	Cancellable contracts for the supply of goods and services
27,921	Not later than one year		22,941
1	Later than one year and not later than five years		-
-	Later than five years		-
27,922	Total supply commitments		22,941
149,182	Total operating commitments		270,432
165,183	Total commitments	16	281,615

The accompanying accounting policies and notes form part of these financial statements.

Statement of contingent liabilities

as at 30 June 2008
2006-07 Actual $000		Notes	2007-08 Actual $000

1,492	Legal proceedings and disputes		2,060
210	Personal grievances		-
1,702	Total contingent liabilities	17	2,060

The accompanying accounting policies and notes form part of these financial statements.

Statement of unappropriated expenses and capital expenditure

for the year ended 30 June 2008

Inland Revenue incurred no unappropriated expenses and capital expenditure during the year and to 30 June 2008 (2007, nil).

Statement of departmental expenses and capital expenditure against appropriations

for the year ended 30 June 2008
2006-07 Expenditure $000		2007-08 Expenditure $000	2007-08 Appropriation Voted ^[*] $000
	Vote: Revenue
	Appropriations for output expenses
12,412	Policy advice	14,523	14,654
191,518	Services to inform the public about entitlements and meeting obligations	240,419	243,436
105,538	Services to process obligations and entitlements ^[1]	122,388	124,995
87,345	Management of debt and outstanding returns	82,192	84,097
139,386	Taxpayer audit	152,183	153,570
536,199	Total	611,705	620,752

^* This includes adjustments made in the Supplementary Estimates and transfers under the Public Finance Act 1989.

¹ Collection of ACC levies has been incorporated into Services to process obligations and entitlements.

Transfers under section 26(A) Public Finance Act 1989

	Supp Estimates $000	Section 26(a) Transfers $000	Final Voted $000
Vote: Revenue
Appropriations for output expenses
Policy advice	14,654	-	14,654
Services to inform the public about entitlements and meeting obligations	245,436	(2,000)	243,436
Services to process obligations and entitlements	124,995	-	124,995
Management of debt and outstanding returns	85,097	(1,000)	84,097
Taxpayer audit	150,570	3,000	153,570
Net adjustment	620,752	-	620,752

The accompanying accounting policies and notes form part of these financial statements.