Inland Revenue uses contractors and consultants to provide additional capability to cover short-term demand, or where specialist skills or independent external advice are needed, such as specialist skills needed for our transformation programme.
A contractor is a person who is not considered an employee, providing extra capacity in a role that exists within Inland Revenue, or acting as an additional resource for a time-limited piece of work.
A consultant is a person or firm who is not considered a contractor or employee, engaged to perform a piece of work with a clearly defined scope and to provide expertise, in a particular field, not readily available within Inland Revenue.
Inland Revenue has elected to disclose contractors and consultants information separately in accordance with Te Kawa Mataaho the Public Service Commission guidance.
| Actual 2021 ($000) | Expense | Actual 2022 ($000) |
|---|---|---|
| $62,666 | Contractors | $66,266 |
| $4,418 | Consultants | $9,030 |
| $67,084 | Total contractors and consultants - operating | $75,296 |
| $44,245 | Contractors and consultants - capital | $21,274 |
| $111,329 | Total contractors and consultants | $96,570 |
The difference between the amounts in the table above, and the contractors and consultants expense in Note 4 - Personnel, is because the financial statement definitions vary slightly to Te Kawa Mataaho definitions. For example, fees paid to other government agencies are excluded for Te Kawa Mataaho purposes.
Capital expenditure on consultants and contractors has reduced as part of the closure of the transformation programme. There has been some increase in operating expenditure on consultants and contractors as costs have transferred from the capital transformation programme to ongoing operating activities.
With the closure of the transformation programme, we have reviewed our classification of consultants and contractors expenditure to ensure alignment with Te Kawa Mataaho definitions in a post-transformation environment. Updated classifications will be effective from 1 July 2022.