Part Four – Standards and Service Performance, Audit Report

In this section

Section Six – Statement of Standards and Service Performance (SSP) For the Year Ended 30 June 2009

Vote Arts, Culture and Heritage

The service performance measures and quality standards (covering quantity, quality or timeliness) for each output and sub-output are as follows:

Output 1: Heritage Services

Description:
This output involves:
The research, writing and publication of New Zealand history and reference works, including Te Ara – The Encyclopedia of New Zealand
The administration of grants and the provision of advice in New Zealand history
The management of national monuments, war graves and historic graves
The administration of legislation relating to commemorative days and to the symbols and emblems of New Zealand sovereignty
The administration of the Government Exhibition Indemnification Scheme
The administration of the Protected Objects Act 1975.

Output 1.1: Historical Publications and Administrative Services

(a) Service Performance measures

Measures	2008/09 Budget Performance	2008/09 Actual Performance	Comments
Acceptance of Ministerial submissions in relation to the Flags, Emblems and Names Protection Act	100%	100%
*Administration of Protected Objects Act*
Export application decisions overturned on appeal	Nil	Nil
*Administration of the Government Exhibition Indemnification Scheme*
Compliance with indemnification criteria	100%	100%
Applicant timing requirements met	100%	100%
*Administration of legislation relating to commemorative days and the symbols and emblems of NZ sovereignty*
Acceptance of Ministerial submissions	100%	100%
*The research, writing and publication of NZ history and reference work*

Measures	2008/09 Budget Performance		2008/09 Actual Performance	Comments
*(a) Completion of (digital) history projects to plan:*
Development of planned content for younger users of NZHistory.net.nz		100%	90%	The addition and completion of the unplanned 28th Māori Battalion website project resulted in resources being diverted from other web projects which were delayed until resource became available.
Development of planned content for history and history related curriculum		100%	90%
Annual number of unique visitors to NZHistory.net.nz		750,000	990,517
*(b) Completion of (non-digital) history projects plan:*
Vietnam War (combat and medical history)		90%	100%
From Memory (War Oral History Programme) – interviews with civilians, commence J and K Force interviews		90%	80%	The addition and completion of the unplanned 28th Māori Battalion website project resulted in resources being diverted from other web projects which were delayed until resource became available.
Vietnam oral history project		90%	90%
Prime Ministers and Cabinet		90%	80%
*Administer grants for the provision of advice on NZ history*
Application processing standards for administering grants to NZ history are met		90%	100%
Justified complaints on application processing		Nil	Nil
*The research, writing and publication of NZ works of reference including the online encyclopedia of NZ*
Additional themes by 30 June 2009		1	1

Measures	2008/09 Budget Performance	2008/09 Actual Performance	Comments
Publications from Te Ara – The Encyclopedia of New Zealand online content	2	1	A second publication, New Zealanders and the Sea was delayed by the publisher until September 2009 because of a printer’s error.
Annual visits to www.TeAra.govt.nz	2.5 million	3 million
New regions in Te Ara – The Encyclopedia of New Zealand by 30 June 2009	4	3	A fourth region was completed but not launched until August 2009.

(b) Quality Standards

Requirement	Standard	Standard Achievement 2008/09
Quality standards for historical publications	All historical publications to meet agreed time and content criteria (Criteria is specified and documented for each project)	Standard achieved.
Quality standards for historical publications	All applications and enquiries acknowledged within 10 working days	Standard achieved.
Quality standards for grant schemes	All applications copied and despatched to committee at least five working days before the meeting to determine grants	Standard achieved.
	All decisions with explanations notified to applicants within 15 working days of the decision	Standard exceeded – achieved within 10 working days.
	All payments of grants made within 20 working days of notification	Standard achieved.
Administration of Protected Objects Act 1975	Sections 5,6, and 7 of the Protected Objects Act 1975	All applications to export protected objects were processed according to the criteria in the act.
Government Exhibition Indemnification Scheme – Cabinet decision	Criteria for the administration of the Government Exhibition Indemnification Scheme	Both applications for indemnification met the criteria of the scheme.

Output 1.2: Heritage Property Management

(a) Service Performance measures

Measures	Actual performance 2008/09	Comment
4,188 war graves, 81 historic graves and 16 national monuments will be maintained in accordance with the agreed maintenance programme	Achieved – All work programmed for war and historic graves for the 2008/09 year was completed Partially achieved – national monuments	Work at Savage Memorial (only) was not completed due for project management reasons.
The National War Memorial and seven overseas war memorials will be managed and maintained in accordance with the agreed maintenance programme	Achieved	Management and maintenance of the National War Memorial and the seven overseas memorials at Gallipoli, Longueval, Graventafel, Messines, Le Quesnoy, London and Busan was carried out according to the agreed work programme.
All site inspections to determine necessary maintenance will be undertaken in accordance with an agreed schedule	Achieved – All site inspections were undertaken in accordance with the agreed schedule
At the conclusion of scheduled maintenance all sites will be in a good state of repair with inscriptions legible and stonework intact	Achieved – Every contractor is required to supply a photograph of completed work with the submitted invoice
Special projects will be managed to give 100% implementation of the agreed programme. Current projects: New Zealand Memorial Park	New Zealand Memorial Park – A design for the park was selected but has not been approved	Up to the 2008 election extensive consultation has been undertaken to ensure wide support for the project as a whole and for the selected design.
*Commemorating Waitangi Day Fund*
No justified complaints will be received concerning administration of the fund	Achieved – No justified complaints were received concerning the administration of this fund

Measures	Actual performance 2008/09		Comment
*Administering the Government Exhibition Indemnification Scheme*
An estimated 5 indemnifications will be established and administered during the year (Demand driven measure)		Two deeds of indemnifications were signed during the year; one for The Emperor’s Dragons at Otago Museum and the other for a major exhibition of works by Claude Monet at Te Papa.
100% of indemnifications will comply with the policy guidelines for the scheme		Achieved – All indemnifications complied with the policy guidelines for the scheme.
*Protected Objects Act 1975* Note: Management of contracts for the authentication of taonga tūturu will be made with the Auckland War Memorial, Canterbury and Otago Museums. Applications made under the Protected Objects Act 1975 are now reflected in the following three measures:
Export certificates for antiquities issued		Eighty-eight applications for export certificates were made during the year; 48 export certificates for antiquities were issued. The remainder were clearance certificates for objects not classified as protected.
Determinations of custody of newly found taonga tūturu		During the year, the Ministry was notified of 106 newly found taonga tūturu. Under the Protected Objects Act, custody is no longer determined by the Ministry. Instead, the Ministry works towards the transfer of legal ownership to the actual or traditional owners. 17 applications for ownership were submitted to the Maori Land Court. 11 applications were granted. The others were yet to be determined at year end.
Collectors of taonga tūturu registered		Achieved – 74 collectors of artifacts were registered.

Output Financial Performance
(Figures are GST exclusive)

	2008/09	2008/09
	Actual	Supp. Estimates
	$000	$000
Revenue Crown	5,750	5,750
Other Revenue	275	288
Total Revenue	6,025	6,038
Total Expenses	5,805	6,038
Net Surplus/(deficit)	220	–

Explanations of major variances are provided in Note 14 of the Notes to the Financial Statements (page 57).

Output 2: International Cultural Diplomacy

Description
This output involves the management of the Cultural Diplomacy International Programme (CDIP), including the co-ordination of a cross-agency steering group comprising the Ministry of Foreign Affairs and Trade, Tourism New Zealand and New Zealand Trade and Enterprise.

(a) Performance measures

Performance Measures	2008/09 Budget Standard	2008/09 Actual Standard	Comment
Projects completed	100% on time and within budget	100% on time and within budget	All approved projects met the cabinet criteria.

The fourth year of the Cultural Diplomacy International Programme (CDIP) has seen funding provided to a range of projects to advance New Zealand’s economic, trade, tourism, and diplomatic interests.
A breakdown of the cost of operating the programme and of the initiatives funded is as follows:

Operating costs	$000
Ministry for Culture and Heritage administrative costs	222
Initiatives funded	1,298
Total	1,520

Breakdown of initiatives funded
Support for the Royal New Zealand Ballet’s tour to China	30

Operating costs	$000
Support for the Prime Minister’s visit to China and the opening of the New Zealand Trade and Enterprise business centre in Shanghai	26
Major trade promotion focus activities in Korea	1,024
Shanghai Tourism New Zealand Promotion	66
Contemporary Music and associated leveraging activities in Taipei	56
Manila New Zealand Festival	25
Bangkok Film Festival	8
Jakarta Film Festival	10
Singapore New Zealand Festival	56
Contemporary Music/Dance, Hong Kong and Taipei return of unspent funds	−3
Total Initiatives Funded	1,298

Output Financial Performance
(Figures are GST exclusive)

	2008/09	2008/09
	Actual	Supp. Estimates
	$000	$000
Revenue Crown	1,879	1,879
Other Revenue	1	1
Total Revenue	1,880	1,880
Total Expenses	1,520	1,880
Net Surplus/(deficit)	360	–

Explanations of major variances are provided in Note 14 of the Notes to the Financial Statements (page 57).

Output 3: Policy Advice and Grants Administration

Description
This output involves:
the provision of policy advice on arts, culture, heritage and broadcasting issues, as determined in consultation with Ministers, including legislation, major policy proposals, and developments and initiatives which have significance to the arts, culture, heritage and broadcasting sectors
the management and disbursement of payments to a number of arts, culture, heritage and broadcasting sector agencies, and the monitoring of the Crown’s interests in these organisations
the provision of negotiated services to Ministers, including the preparation of replies to ministerial correspondence, and general services that assist Ministers in discharging their portfolio obligations to Parliament.

Output 3.1: Policy Advice

(a) Performance Measures

Performance Measures	2008/09 Budget Standard	2008/09 Actual Standard	Comment
*Policy Advice*
Average rating for Ministerial satisfaction with policy advice and submissions to Cabinet and Cabinet Committees	rated good or better	Arts, Culture and Heritage not met Broadcasting met	Not met. The ministerial assessment has identified room for improvement in some areas. The Ministry is committed to meeting the needs of Ministers and is putting processes in place to make improvements in the areas identified.
Briefing papers provided	550	638
Cabinet papers provided	30	34
Cabinet papers contributed to	70	92
*(a) Arts, culture and heritage issues including legislation, major policy proposals and developments and initiatives of significance in the sector*
*Meets plans and budget for programmes of policy development covering:*
Enhancing heritage management	100%	100%
Arts and cultural management	100%	100%
Cross government initiatives	100%	100%
Cross government initiatives where they affect the cultural sector	100%	100%
*(b) Broadcasting*
Meets plans for successful transition to digital broadcasting	100%	100%	Digital Switch-off Steering Group established.
Meets plans for securing future of Public Service broadcasting	100%	100%	Cabinet paper to repeal TVNZ Charter and replace with statutory functions. RNZ Bill introduced.
Meets plans for supporting broadcast content availability and impact	100%	100%	Platinum Fund announced.

Performance Measures	2008/09 Budget Standard		2008/09 Actual Standard	Comment
*(c) Provide online information about and access to NZ cultural events and providers (NZLive.com)*
*Note: 2007/08 was the first full year of operation for the set up and development of NZLive.com and 2008/09 is the base year for performance measurement.*
Number of visitors to the website	1 million		914,202
Percentage of return visitors	Increase in return visitors as percentage of total visitors		Increase of 3%
Subscribers to the newsletter	8,500		8,780
Number of organisations contributing content	Increase in contributing organisations		Decrease of 1%
Number of international visitors	Continued increase in international visitor numbers		Increase of 23%
Return visitor numbers	Increase in return visitor numbers		Increase of 41%
*Monitoring of Funded Agencies*
*(a) The management and disbursements of payments to arts, heritage and broadcasting sector agencies*
Compliance with instructions and conditions governing payments to funded agencies	100%		100%
*(b) Monitoring of the Crown’s interests in funded arts, heritage and broadcasting sector agencies*
Compliance with the provisions of the funded agency accountability regime for the financial year	100%		100%
Board satisfaction with requested advice and support on capability matters	90%	80%

Performance Measures	2008/09 Budget Standard	2008/09 Actual Standard	Comment
Completion of baseline reviews within budget and to a standard approved by the Minister	100% (for 2 or more reviews)	100% (for 2 or more reviews)	Te Papa; New Zealand Ballet. Broadcasting – nil.
Satisfaction with workshops and other discussion opportunities for board chairs and members	90% or more are satisfied	91%
Attendance of new board appointees on board induction programmes	100% within 6 months	71%
Completion of agreed schedule of regular updates for board members, governance e-newsletter quarterly editions and maintenance of relevant content on the online shared workspace	100%	100%
*Other Negotiated Services*
*(a) Ministerial servicing – preparation of draft responses to ministerial correspondence and questions in the House*
Drafts accepted by the Minister	95%	99%
Annual rating of ministerial satisfaction with draft ministerial correspondence	Each category rated good or better	Arts, Culture and Heritage not met Broadcasting met	Not met. The ministerial assessment has identified room for improvement in some areas. The Ministry is committed to meeting the needs of Ministers and is putting processes in place to make improvements in the areas identified.
Annual rating of ministerial satisfaction with draft replies to questions in the House	Each category rated good or better	Met
Working days provision of draft ministerial correspondence	90% within 15 working days of receipt	70%	Meeting of deadlines is dependant upon consultation and research demands.
Working days provision of draft ministerial correspondence	100% within 20 working days of receipt	91%

Performance Measures	2008/09 Budget Standard	2008/09 Actual Standard	Comment
Ministers’ office deadlines for draft replies to questions in the House	100%	100%
Number of items of draft ministerial correspondence	500	458	The number of items is based on demand.
Number of draft replies to questions in the House	200	117
*(b) Preparation of speech notes*
Number of draft sets of speech notes provided	90	90

(b) Quality Standards

Quality standards for 2008/09	Actual performance	Comment
100% of briefing reports will meet the deadlines set by the Ministers’ offices	100% briefing reports met deadlines set by Ministers’ offices
Ministers will rate on an annual basis, the Ministry’s performance in regard to speech notes provided as good or better	Arts Culture and heritage – not met	Ministerial assessment has identified room for improvement in some areas. The Ministry is committed to meeting the needs of Ministers and is putting processes in place to make improvements in the areas identified.
	Broadcasting – met.
*Submissions to Cabinet / Cabinet Committees*
100% of submissions will meet Cabinet Office deadlines	Achieved
*Sets of speech notes*
100% of the sets of speech notes will meet the deadlines set by the Ministers’ offices	100% of the sets of speech notes provided met the deadlines set by the Ministers’ offices.

Output 3.2: Grants Administration

(a) Performance measures and quality standards

Measures / quality standards for 2008/09	Actual performance	Comment
Crown payment for Non-Departmental Output Expenses, Other Expenses and Capital Contributions will be disbursed to funded organisations during the year. All payments will be made in accordance with instructions and conditions governing the payment.	100% payments were made to funded organisations in accordance with instructions and conditions governing the payment.
The performance of recipients of Crown payments will be specified in memoranda of understanding or other funding arrangements agreed by responsible Ministers. All agreements will be completed by 31 July 2009, unless formal extension is agreed by the relevant Minister.	Achieved
Advice and assistance to recipients of Crown payments will be provided as required	Achieved – Advice and assistance to recipients of Crown payments was provided as required.
Advice provided will be rated as satisfactory or better by 90% of respondents	Achieved – Feedback was sought from agencies and, where provided, the Ministry’s performance was rated as satisfactory or better.

Output Financial Performance
(Figures are GST exclusive)

	2008/09	2008/09
	Actual	Supp. Estimates
	$000	$000
Revenue Crown	6,986	6,986
Other Revenue	148	163
Total Revenue	7,134	7,149
Total Expenses	6,220	7,149

Explanations of major variances are provided in Note 14 of the Notes to the Financial Statements (page 57).

Vote Sport and Recreation

Output: Purchase Advice and Monitoring Of Sport and Recreation Crown Entities

Description
This output involves the provision of purchase advice to and monitoring of sport and recreation Crown entities on behalf of the Minister for Sport and Recreation.

(a) Performance measures and quality standards

Performance Measures and Standards for 2008/09	Actual performance	Comment / Notes
Estimated 10 briefing reports will be provided	24 briefing reports were provided.
Compliance with the Quality Standards for Analysis and Advice as assessed by the Minister two times during the year	At the time of printing this information was not available	2008/09 Budgeted standard is: Rated as meeting and frequently exceeding expectations.
Crown payment for Non-Departmental Output Expenses, Benefits and Other Unrequited Expenses, and Other Crown Expenses will be disbursed to at least two organisations during the year. All payments will be made in accordance with instructions and conditions governing the payment.	100% payments were made to the two organisations in accordance with instructions and conditions governing the payment.
The performance of recipients of Crown payments will be specified in memoranda of understanding or other funding arrangements agreed to by the Minister. All agreements will be completed by 31 July 2008, unless formal extension is agreed to by the Minister.	Signed MoUs were in place for the two organisations by 31 July 2008.

Output Financial Performance
(Figures are GST exclusive)

	2008/09	2008/09
	Actual	Supp. Estimates
	$000	$000
Revenue Crown	98	98
Other Revenue	0	0
Total Revenue	98	98
Total Expenses	98	98
Net Surplus/(deficit)	0	0

Explanations of major variances are provided in Note 14 of the Notes to the Financial Statements (page 57).

Audit Report

To The Readers of The Ministry for Culture and Heritage’s
Financial Statements and Statement of Service Performance
for the Year Ended 30 June 2009

The Auditor General is the auditor of the Ministry for Culture and Heritage (the Ministry). The Auditor General has appointed me, Leon Pieterse, using the staff and resources of Audit New Zealand, to carry out the audit. The audit covers the financial statements and statement of service performance included in the annual report of the Ministry for the year ended 30 June 2009.

Unqualified Opinion
In our opinion:

The financial statements of the Ministry on pages 34 to 58:
- comply with generally accepted accounting practice in New Zealand; and
- fairly reflect:
  - the Ministry’s financial position as at 30 June 2009;
  - the results of its operations and cash flows for the year ended on that date;
  - its expenses and capital expenditure incurred against each appropriation administered by the Ministry and each class of outputs included in each output expense appropriation for the year ended 30 June 2009; and
  - its unappropriated expenses and capital expenditure for the year ended 30 June 2009.
  - The schedules of non-departmental activities on pages 59 to 66 fairly reflect the assets, liabilities, revenues, expenses, contingencies, commitments and trust monies managed by the Ministry on behalf of the Crown for the year ended 30 June 2009.
The statement of service performance of the Ministry on pages 67 to 79:
- complies with generally accepted accounting practice in New Zealand; and
- fairly reflects for each class of outputs:
  - its standards of delivery performance achieved, as compared with the forecast standards included in the statement of forecast service performance adopted at the start of the financial year; and
  - its actual revenue earned and output expenses incurred, as compared with the forecast revenues and output expenses included in the statement of forecast service performance adopted at the start of the financial year.

The audit was completed on 30 September 2009, and 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 the Auditor, and explain our independence.

Basis of Opinion
We carried out the audit in accordance with the Auditor General’s Auditing Standards, which incorporate the New Zealand Auditing Standards.

We planned and performed the audit to obtain all the information and explanations we considered necessary in order to obtain reasonable assurance that the financial statements and statement of service performance did not have material misstatements, whether caused by fraud or error.

Material misstatements are differences or omissions of amounts and disclosures that would affect a reader’s overall understanding of the financial statements and statement of service performance. If we had found material misstatements that were not corrected, we would have referred to them in our opinion.
The audit involved performing procedures to test the information presented in the financial statements and statement of service performance. We assessed the results of those procedures in forming our opinion.

Audit procedures generally include:

determining whether significant financial and management controls are working and can be relied on to produce complete and accurate data;
verifying samples of transactions and account balances;
performing analyses to identify anomalies in the reported data;
reviewing significant estimates and judgements made by the Chief Executive;
confirming year-end balances;
determining whether accounting policies are appropriate and consistently applied; and
determining whether all financial statement and statement of service performance disclosures are adequate.

We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and statement of service performance.
We evaluated the overall adequacy of the presentation of information in the financial statements and statement of service performance. We obtained all the information and explanations we required to support our opinion above.

Responsibilities of the Chief Executive and the Auditor
The Chief Executive is responsible for preparing the financial statements and statement of service performance in accordance with generally accepted accounting practice in New Zealand. The financial statements must fairly reflect the financial position of the Ministry as at 30 June 2009 and the results of its operations and cash flows for the year ended on that date.

The financial statements must also fairly reflect the expenses and capital expenditure incurred against each appropriation administered by the Ministry and each class of outputs included in each output expense appropriation for the year ended 30 June 2009. The financial statements must also fairly reflect the Ministry’s unappropriated expenses and capital expenditure for the year ended on that date.

In addition, the Chief Executive is responsible for preparing schedules of non-departmental activities, in accordance with the Treasury Instructions 2008 that must fairly reflect the assets, liabilities, revenues, expenses, contingencies, commitments and trust monies managed by the Ministry on behalf of the Crown for the year ended 30 June 2009.

The statement of service performance must fairly reflect, for each class of outputs, the Ministry’s standards of delivery performance achieved and revenue earned and expenses incurred, as compared with the forecast standards, revenue and expenses adopted at the start of the financial year.
The Chief Executive’s responsibilities arise from sections 45A and 45B of the Public Finance Act 1989.
We are responsible for expressing an independent opinion on the financial statements and statement of service performance and reporting that opinion to you. This responsibility arises from section 15 of the Public Audit Act 2001 and section 45D(2) of the Public Finance Act 1989.

Independence
When carrying out the audit we followed the independence requirements of the Auditor General, which incorporate the independence requirements of the Institute of Chartered Accountants of New Zealand.
Other than the audit, we have no relationship with or interests in the Ministry.

audit
Leon Pieterse
Audit New Zealand
On behalf of the Auditor General
Wellington, New Zealand

Matters relating to the electronic presentation of the audited financial statements
This audit report relates to the financial statements of the Ministry for Culture and Heritage for the year ended 30 June 2009 included on the Ministry’s web site. The Ministry’s Chief Executive is responsible for the maintenance and integrity of the Ministry’s web site. We have not been engaged to report on the integrity of the Ministry’s web site. We accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the web site.

The audit report refers only to the financial statements named above. It does not provide an opinion on any other information which may have been hyperlinked to/from these financial statements. If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the audited financial statements and related audit report dated 30 September 2009 to confirm the information included in the audited financial statements presented on this web site.

Legislation in New Zealand governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Matters relating to the electronic presentation of the audited financial statements

This audit report relates to the financial statements of the Ministry for Culture and Heritage for the year ended 30 June 2009 included on the Ministry’s web site. The Ministry’s Chief Executive is responsible for the maintenance and integrity of the Ministry’s web site. We have not been engaged to report on the integrity of the Ministry’s web site. We accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the web site.
The audit report refers only to the financial statements named above. It does not provide an opinion on any other information which may have been hyperlinked to/from these financial statements. If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the audited financial statements and related audit report dated 30 September 2009 to confirm the information included in the audited financial statements presented on this web site.

Legislation in New Zealand governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Annual Report 2009

Part Four – Standards and Service Performance, Audit Report

In this section

Section Six – Statement of Standards and Service Performance (SSP) For the Year Ended 30 June 2009

Vote Arts, Culture and Heritage

Output 1: Heritage Services

Output 1.1: Historical Publications and Administrative Services

Output 1.2: Heritage Property Management

Output 2: International Cultural Diplomacy

Output 3: Policy Advice and Grants Administration

Output 3.1: Policy Advice

Output 3.2: Grants Administration

Vote Sport and Recreation

Output: Purchase Advice and Monitoring Of Sport and Recreation Crown Entities

Audit Report