Annual Report 2022

Chief Executive's foreword | Kupu whakataki a te Tumu Whakarae#

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The Department of the Prime Minister and Cabinet (DPMC) played a central role during the year progressing and supporting major Government priorities, including management of the COVID-19 pandemic, reform of the health and disability system, and the response to the Royal Commission of Inquiry into the attacks on the Christchurch masjidain.

As the country faced the many challenges of the pandemic, DPMC worked alongside other agencies to ensure these were consistently addressed as well as supporting the move to a new phase of the response and recovery.

DPMC's work, spearheaded by the COVID-19 Group and supported by other parts of the Department, included advising on and facilitating the shift from the Alert Level System to the COVID-19 Protection Framework. The Department also supported the rollout of the vaccination campaign and the Government's plan for Reconnecting New Zealanders with the World.

Major milestones met during the year enabled the shift to the new health and disability system on 1 July 2022. The Health Transition Unit held roadshows and met sector representatives throughout the country to discuss the reforms ahead of the interim agencies Te Whatu Ora and Te Aka Whai Ora being established and the passing of the Pae Ora (Healthy Futures) Act 2022.

The National Security Group led hui and community engagement and coordinated work across agencies to progress and implement the 44 recommendations of the Royal Commission agreed by Cabinet. He Whenua Taurika, the National Centre of Research Excellence for Preventing and Countering Violent Extremism, was launched. The Christchurch Call Crisis Response Protocol to help eliminate terrorist and violent extremist content online was also revised.

Cabinet Office supported the Prime Minister in the preparation and announcement of changes to Ministerial portfolios in June, and led work for the 2021 Special Honours List (New Zealand Bravery Awards) for individuals recognised for their actions in relation to the terrorist attacks. Along with Government House, it played a key role in the transition of Governors-General and the swearing in of Rt Hon Dame Cindy Kiro, as well as being involved in the organisation of events to celebrate the Queen's Platinum Jubilee.

The Child Wellbeing and Poverty Reduction Group continued to support the Government priority of making Aotearoa New Zealand the best place in the world for children and young people. This included publication of the first statutory Child and Youth Wellbeing Strategy Annual Report to measure progress on wellbeing indicators.

The Implementation Unit worked with agencies to identify whether priority Government projects remained on track to deliver the intended benefits and within planned timeframes and, where required, helped identify ways forward. Its programme included a mid-term review of the 2019 Mental Health Package.

The Policy Advisory Group remained focused on providing advice to the Prime Minister and working with agencies to ensure decisions were well informed across a number of complex and wide-ranging areas and issues. The Policy Project continued work to support agencies to further build policy capability, including an initiative to improve analytical skills for policy advisors in the early stages of their careers.

The National Emergency Management Agency (NEMA), a departmental agency hosted by DPMC, continued to respond to and provide support for weather events in many parts of the country, while also working across agencies on efforts to reduce the impacts of climate change.

The agility of the Strategy, Governance and Engagement Group and business partners, Central Agencies Shared Services, ensured the Department was well positioned and supported to manage its additional responsibilities while also maintaining core business.

Progress was made on the Department's internal priorities of building te ao Māori capability, improving cultural competence, and building the quality of policy advice.

It is through the dedication and professionalism of staff that so much was achieved during another year of enormous challenge for DPMC and the wider public service. Their commitment and resilience enabled the Department to further its purpose of advancing an ambitious, resilient and well-government Aotearoa New Zealand.

Brook Barrington
Chief Executive

Our story | Te kōrero#

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Our strategic intentions | He takunetanga rautaki#

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Who we are and what we do | Ko wai mātou, he aha ā mātou mahi#

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Our purpose is to advance an ambitious, resilient and well-governed Aotearoa New Zealand

Te Tari o te Pirimia me te Komiti Matua, the Department of the Prime Minister and Cabinet (DPMC), supports the government of the day. We do this by leading, advising, stewarding and delivering activities across the public service, as well as providing specific advice and support to the Governor-General, Prime Minister and our portfolio Ministers.

As one of the three central agencies, we also play a role in leading and coordinating across the public service.

Our functions and services are evolving to meet the changing needs and expectations of us as a department, however our purpose and enduring roles remain consistent.

We have three core and enduring roles which help us deliver on our purpose#

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Supporting informed decision-making

We provide the Prime Minister, Cabinet and portfolio Ministers with intelligence, advice, support and brokerage on the business of the day. We also provide strategic advice, taking a whole-of-government view to help the Government shape its agenda, and ensure the public service is aligned with and gets traction to implement the Government's programme.

We support the Prime Minister and Cabinet, which includes providing advice on all Cabinet and Cabinet Committee papers (excluding appointments), as well as emerging issues. We serve Ministers with responsibilities relating to national security and intelligence, cyber security, the response to the Royal Commission of Inquiry into the terrorist attack on Christchurch masjidain, health, the response to COVID-19, the regeneration of greater Christchurch, and child wellbeing and poverty reduction. Through the National Emergency Management Agency (NEMA), we provide advice to Ministers with responsibilities relating to civil defence and emergency management.

We host the Policy Project whose role is to build a high-performing policy system that supports good government decision-making. The Policy Project supports the DPMC Chief Executive's role as Head of the Policy Profession.

Supporting well-conducted government

We support the Governor-General, Prime Minister, Cabinet and Ministers to exercise their constitutional roles. We ensure the smooth, lawful and trustworthy running of executive government through the provision of secretariat services, constitutional advice and support, legislative support and administration of the New Zealand Royal Honours system. In 2021/22, this included advice and support on the transition between Governors-General.

We support the Governor-General across the four main duties of the office: constitutional, ceremonial, community leadership and international. We also undertake kaitiakitanga for the heritage buildings and grounds of the residences in Auckland and Wellington.

Leading an effective, strategically focused National Security System

We lead and steward Aotearoa New Zealand's National Security System in strengthening national resilience, developing situational understanding, and improving coordination and collaboration on nationally significant issues. At the system level, this includes supporting the Hazard Risk Board and Security and Intelligence Board to carry out their governance and oversight role for Aotearoa New Zealand's national security risks, as well as leading the Government's response to the Royal Commission of Inquiry into the terrorist attack on Christchurch masjidain.

The Christchurch Call Unit was established in 2021/22 to lead and coordinate the Government's efforts on the Christchurch Call, working jointly with the Ministry of Foreign Affairs and Trade and counterparts in France.

Over the last year, we also continued to provide oversight and coordination of cross-government work on the COVID-19 response.

Our year at a glance | Te tau kua hipa#

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Advancing an ambitious, resilient and well-governed Aotearoa New Zealand#

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Outcome 1: The Government is enabled to deliver its priorities

What we intended to achieve

Progress against our indicators

Indicator	Desired trend	Progress 2020/21	Progress 2021/22	Outcome this contributes to
Quality of policy advice and assessments	↑	○	✔	Informed decision‑making
Prime Minister and Ministerial satisfaction with advice and servicing	→ or ↑	✔	✔	Informed decision‑making
Uptake of Policy Project tools and frameworks in support of improving policy quality across the public sector	↑	✔	✔	Proactive and responsive public sector

Key to the indicators:    ↑ Increase    → Maintain    ↓ Decrease    ✔ On track    ✗ Not on track     ● No progress to report    ○ No change

What we achieved in 2021/22

We provided advice and support to the Government on the response to COVID-19

We continued to provide a vital advisory role to support Government decision-making on the response to COVID-19 during 2021/22. This required high levels of collaboration across agencies at a fast pace and with significant levels of complexity. Key achievements include:

• leading and coordinating work across sectors to develop the strategy for Reconnecting New Zealanders with the World following the closure of the international border in 2020. This involved supporting Ministers to announce the plan in August 2021, and providing advice on adaptions to the plan to reflect context changes and outbreaks;
• supporting Ministers around the decision to adopt the COVID-19 Protection Framework based on public health and other advice, coordinating across sectors to facilitate this shift and providing ongoing advice to ensure the settings remained fit for purpose; and
• coordinating a cross-agency briefing to update Ministers on changes and progress made in addressing the findings and recommendations in the Waitangi Tribunal's Haumaru: The COVID-19 Priority Report.

More information on our achievements relating to the coordination of the all-of-government response to COVID-19 is set out on page 19.

We supported the Government's response to the Health and Disability System Review/Hauora Manaaki Ki Aotearoa Whānui

Following Cabinet's agreement to the new health system operating model and the implementation plan in 2020/21, the focus over the year shifted to implementing the reforms and finalising detailed design of the new model. Our work on this led to the Pae Ora (Healthy Futures) Act coming into effect on 1 July 2022, as the new system entities Te Whatu Ora (Health New Zealand) and Te Aka Whai Ora (Māori Health Authority) were established. We led the preparedness for Day 1 of the new system, which enabled a successful transfer of over 80,000 employees from 20 District Health Boards and eight shared services agencies to the new entities. These changes signal a transition to the new health system, new ways of working and the continuing transformation.

Key achievements in supporting the implementation of the health and disability system reform in 2021/22 include:

• drafting and introducing the Pae Ora (Healthy Futures) Bill within six months of the announcement of the new system operating model;
• delivering over 200 sector engagements on the design and implementation of the new health system, including taking a national roadshow to 21 sites across Aotearoa to give over 3,500 people in the health sector an opportunity to learn more about the health reforms;
• providing advice and support on the development of the Budget 2022 Vote Health funding package, which provided the largest ever investment into health and was the first multi-year budget for the health system, setting the foundation for ongoing system transformation;
• establishing the new system entities as interim entities in late 2021, along with their boards, which provided them with strong foundations to appoint leadership early and build capability and capacity in the lead up to the transition on 1 July 2022; and
• leading the transfer of almost 900 FTEs and functions from the Ministry of Health to Te Whatu Ora and Te Aka Whai Ora prior to 1 July 2022.

We supported the Government to make Aotearoa New Zealand the best place in the world for children and young people

During 2021/22, we continued to support the Government to embed the child wellbeing and poverty reduction legislative framework, including the Child and Youth Wellbeing Strategy (the Strategy), and use it to effect change for children and young people.

This included providing advice on a range of areas that will have the biggest impact on improving child and youth wellbeing and poverty reduction.

Key achievements include:

• contributing to the Working for Families and Debt to Government cross-agency policy work;
• leading cross-agency work to improve the wellbeing of children and their whānau in the first 1,000 days; and
• providing advice on many of the policies and measures that have contributed to the downward trend of all of the child poverty measures since the 2017/18 baseline and meeting the first round of child poverty targets on two of the three primary measures.

We also continued to monitor progress against the Strategy and child poverty targets, and started the review of the Strategy, which under the legislation must be completed within three years of the Strategy's publication. Our advice and recommendations around proposed changes will be provided to the Minister for Child Poverty Reduction in 2022/23. The review was informed by findings of various recent reports, insights and themes from a range of research and consultation exercises undertaken since the development of the Strategy, evaluations of specific work programmes, findings from a process evaluation we commissioned, and some small-scale targeted engagement with key stakeholder groups (see case study).

We supported the Government to drive implementation of its priorities

Following establishment in June 2021, the Implementation Unit assisted the Government to ensure selected high-priority programmes and projects are on track to deliver their intended benefits within intended timeframes.

Over the last year, the Unit undertook a mixture of stocktakes of progress in implementing some of the large, big spend, complex and multiagency programmes. This included work relating to the Budget 2019 Mental Health and Addiction Package, Emergency and Transitional Housing, and the Carbon Neutral Government Programme. Progress reports are regularly proactively released on the DPMC website.

We helped lift policy quality and capability across the public sector

The Policy Project works at system, government agency and policy practitioner levels to build capability to deliver quality policy advice across the public service. During 2021/22, there was a substantial increase in the number of agencies supported, events held and event participation.

Key achievements during 2021/22 include:

• establishing a public service-wide Policy Capability Leads Group to actively support collective decision‑making;
• promoting better community engagement in policy making and undertaking the longer-term thinking needed to enable policy decisions that are more fit for the future; and
• supporting agencies to build their capability as they develop their first Long-term Insights Briefings, a new responsibility set out in the Public Service Act 2020, to ensure the principle of stewardship is actively given effect to.

An independent interim evaluation of the Policy Project assessed the implementation of the project, the achievement of its anticipated outcomes and its contribution to the maturity of the policy system. The evaluation endorsed the objectives and broad approach taken to date. Following the review, we supported the Policy Profession Board in making decisions on how to respond to the report's recommendations for making further progress.

Outcome 2: Aotearoa New Zealand's systems and institutions of executive government are trusted, effective and enhance our nation's reputation

What we intended to achieve

Progress against our indicators

Indicator	Desired trend	Progress 2020/21	Progress 2021/22	Outcome this contributes to
Trust and confidence in government	↑	✔	○	Systems and institutions of executive government are trusted
Ministerial satisfaction with the systems and institutions of executive government	→ or ↑	✔	✔	Systems and institutions of executive government are trusted and effective
Governor-General satisfaction with support provided	↑	✔	✔	Effective support for the Governor-General to carry out the role

Key to the indicators: ↑ Increase    → Maintain    ↓ Decrease    ✔ On track    ✗ Not on track     ● No progress to report    ○ No change

What we achieved in 2021/22

We modernised processes and systems to support the smooth and cohesive operation of Cabinet and its committees

We supported executive government to run smoothly by providing effective and impartial advice and support to the Prime Minister and Ministers.

We continued to support Cabinet and Cabinet committees to meet remotely under COVID-19 restrictions when required, and this was also extended to Executive Council meetings with the Governor-General. This ensured there was no undue disruption to executive government decision-making.

The operation of CabNet, a strong, secure and stable online system that supports Cabinet processes, was supported by a programme of ongoing maintenance and minor enhancements.

The Cabinet Office supported the Prime Minister to prepare for and announce portfolio changes in June 2022 including the appointment of new Ministers.

We enhanced Aotearoa New Zealand's sense of nationhood

We supported the nation's celebration of the Queen's Platinum Jubilee, marking Queen Elizabeth II's 70 years as the Queen of New Zealand and our Head of State. Acknowledgements included the design of a Jubilee emblem, Service of Celebration at Wellington Cathedral, the appointment of two additional members of the Order of New Zealand in the Queen's Birthday and Platinum Jubilee Honours list, a donation by the government of $1 million for tree planting projects across the nation, naming the Queen Elizabeth II Platinum Jubilee Path on Rakiura/Stewart Island and lighting a beacon in Wellington as part of a Commonwealth-wide Platinum Jubilee Beacons event. The Governor-General's website hosts the Platinum Jubilee pages, with messages and information about events held in New Zealand.

We supported the new Governor-General, the Rt Hon Dame Cindy Kiro, to develop strategic priorities that will underpin her time in office and provide a focus for the activities the Governor-General undertakes. These priority areas include stewardship of the natural world, wellbeing for all, celebrating diversity and commonality, and valuing knowledge and education.

Dame Cindy's programme included the first ANZAC Day commemoration since pre-COVID times, a homecoming event in Northland where she was formally welcomed on to Mōtatau Marae and the resumption of international travel to represent New Zealand overseas.

We increased public awareness of the New Zealand Royal Honours system

The two regular Honours lists were well received and we continued to expand information provided to media. To promote awareness of the diversity of honours recipients, from the New Year 2022 Honours list onwards a summarised high-level analysis of the ethnicity of recipients is provided to assist media organisations in preparing their coverage when each honours list is announced. We also now ask honours recipients to agree to being identified as part of an ethnic group to media organisations, should it be requested.

An additional 2021 Special Honours List (New Zealand Bravery Awards) acknowledged the extraordinary courage of ten people recognised for acts of bravery relating to the 15 March 2019 terrorist attacks. The list included two awards, including one posthumous, of our highest Bravery honour, the New Zealand Cross, which is the bravery equivalent of the Victoria Cross for New Zealand for gallantry. Since the establishment of the New Zealand Bravery Awards in 1999, the New Zealand Cross has only been awarded on two other occasions. Due to the nature of events leading to nominations for bravery awards, there is often a delay between the event and consideration of awards, to allow for Police or other investigations to be completed - in this case the completion of both the court process for the charges against the terrorist and the work of the Royal Commission of Inquiry into the terrorist attack on Christchurch masjidain.

Outcome 3: People living in Aotearoa New Zealand are, and feel, resilient, safe and secure

What we intended to achieve

Progress against our indicators

Indicator	Desired trend	Progress 2020/21	Progress 2021/22	Outcome this contributes to
National Security and Emergency Management System stakeholder satisfaction	-	Indicator under development	Indicator under development[1]	Effective leadership and operation of the National Security and Emergency Management Systems
Ministerial satisfaction with leadership of the National Security and Emergency Management Systems	→ or ↑	✔	✔	Effective leadership and operation of the National Security and Emergency Management Systems
Public Sector Reputation Index rating (NEMA)	↑	✔	✔	Emergency Management System is trusted
New Zealanders who: Have taken action to prepare for an emergency in the last 12 months Know the correct action to take during an earthquake and during a long or strong earthquake near the coast.	↑	✔	✗[2]	Community preparedness and resilience

Key to the indicators:    ↑ Increase    → Maintain    ↓ Decrease    ✔ On track    ✗ Not on track     ● No progress to report    ○ No change

For information on achievements relating to emergency management in support of this outcome, refer to the NEMA Annual Report 2021/22 on page 33.

What we achieved in 2021/22

We improved the strategic leadership of the National Security and Emergency Management Systems

In our role as leaders and stewards of Aotearoa New Zealand's National Security and Emergency Management Systems, it is important to ensure the strategic leadership of the system fosters cohesion and collaboration, as well as being trusted by the public.

As part of the Government's response to the RCOI report, we led a review of national security strategic policy settings. This review will inform the development of Aotearoa's first National Security Strategy. Alongside the review, we developed advice on a work programme to strengthen government arrangements for national security, focused on enhancing leadership and accountabilities at the ministerial, system, chief executive and agency level.

The National Security System has been activated to provide strategic coordination and leadership across a range of issues in 2021/22, including the Russian invasion of Ukraine.[3]

For more information on achievements related to NEMA's role as steward, operator and assurer of the emergency management system, refer to the NEMA Annual Report 2021/22 on page 33.

We led the response to the Royal Commission of Inquiry into the terrorist attack on Christchurch masjidain

We are responsible for coordinating the all-of-government response to the Report of the Royal Commission of Inquiry (RCOI) into the terrorist attack on Christchurch masjidain on 15 March 2019.

In partnership with response agencies, we developed a longer-term cross-government work programme which was agreed to by Cabinet in November 2021. The work programme sets a plan to see work to address all RCOI recommendations commence or become part of agencies' ongoing activities by 2023.

We also supported Kāpuia, the Ministerial Advisory Group providing independent advice to the Lead Coordination Minister on progress, gaps, strengths, weaknesses and opportunities across the Government's response to the RCOI report. Kāpuia's advice and feedback has informed the thinking of Ministers, officials and the public.

We worked on developing and embedding a more comprehensive approach to managing risk

The National Risk Approach is used across government to ensure a proactive and coordinated approach is taken to identify and manage the most significant risks to Aotearoa New Zealand's national security. The key focus of this work is to ensure greater coordination across government, and help agencies identify opportunities to better manage risk and improve resilience.

We continued to lead this approach in 2021/22, supporting responsible agencies to assess risks and identify opportunities to improve our national resilience.

Our efforts have contributed to an improvement in the quality of risk governance discussions at the Hazard Risk Board, and greater connection between the national security and emergency management systems in considering shared system issues and risks.

We are working to increase public understanding of national security risks through the development of the National Security Long-term Insights Briefing ‘Engaging an increasingly diverse Aotearoa New Zealand on national security risks, challenges and opportunities’, which is due to be published in mid-2022/23.

We contributed to New Zealanders being confident and secure online

Over the last year, we have continued to set the direction for cyber security policy, to help New Zealanders address cyber security threats, and build cyber security resilience and capacity. The Cyber Security Strategy 2019 provides the framework for government-led action, in partnership with the private sector.

Key achievements in implementing the Strategy include:

• Cabinet approving key initiatives to lift cyber security resilience in the public sector and the broader economy, informed by a newly-established independent industry advisory committee;
• international engagement on sharing cyber policy best practice, incident response on public attributions of state-sponsored malicious cyber activity, and ongoing negotiation of a new United Nations cybercrime treaty;
• supporting more effective public engagement on cyber security, including funding research on cyber security behaviours and attitudes to inform awareness campaigns;
• updating and publishing the Cyber Security Emergency Response Plan; and
• ensuring cyber security is embedded in key government strategies, including the Digital Strategy for Aotearoa.

We also undertook work to support initiatives which will be delivered in 2022/23, including projects related to growing cyber security skills, improving collaboration with the private sector and supporting the security of emerging technologies. Alongside initiatives arising from the Strategy, DPMC has continued to provide policy and other strategic advice on developing issues and cyber incidents that have increased in scope and scale over the past year.

We led and coordinated the Government's efforts on the Christchurch Call

The Christchurch Call is an action plan comprising of 24 voluntary commitments agreed by governments and technology companies to eliminate terrorist and violent extremist content online.

We worked with the Ministry of Foreign Affairs and Trade and counterparts in France to lead and coordinate progress on the Call. Key achievements include:

• actively engaging with Call supporters and civil society partners to focus on delivering the work programme from the 2021 Call Leaders' Summit;
• assisting new Call supporters to join, using a community-based process developed in 2021;
• initiating work on algorithmic outcomes and a free, open and secure internet; and
• working with the community to update and re-issue the Christchurch Call Crisis Response Protocol.

We supported the Government to enable Aotearoa New Zealand to respond to and recover from the impact of COVID-19

We led and coordinated across the COVID-19 response system to provide Ministers with advice and support to take appropriate and proportionate decisions on response measures. Key achievements included:

• playing an important assurance role, looking across response system settings to risks and areas for improvement;
• coordinating system-wide reporting of progress against independent review, including tracking and reporting over 1,600 recommendations for system improvements to the COVID-19 Chief Executives Board and Minister for COVID-19 Response;
• reporting to the COVID-19 Chief Executives Board and supporting the Strategic COVID-19 Public Health Advisory Group and COVID-19 Independent Continuous Review, Improvement and Advice Group;
• delivering the Unite Against COVID-19 and vaccine campaigns, which were recognised as effective in raising awareness and providing people with access to the information they need to make informed decisions to protect themselves, their whānau and communities;
• sharing data and insights across the system, as well as facilitating system-wide lessons-learned workshops, to inform and improve the response to COVID-19 and future responses.

Advancing an ambitious, resilient and well-governed DPMC#

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Strategic, effective influencers, leaders and system stewards

What we achieved

• As leaders of the policy system, we supported agencies to develop their first Long-term Insights Briefings, which are a new way to identify and explore issues that matter for the future wellbeing of people in Aotearoa and are a new requirement under the Public Service Act 2020.
• With the Ministry of Foreign Affairs and Trade, on behalf of Security and Intelligence Board agencies, we are developing a specific Long-term Insights Briefing focused on national security. Due to be published before the end of the year, this briefing will provide public information about national security risks, challenges and opportunities, including what we are doing to prepare for the future. In developing this briefing we engaged with the public through online feedback and hui. We also conducted an independent public survey on national security to hear the views of New Zealanders on this topic, increasing our understanding of what is of most concern to them and to explore opportunities we have to further advance public conversations on national security.
• We implemented a quality policy advice work programme with a range of actions designed to develop staff skills and improve consistency across the Department. Over the last year this included developing virtual training, creating a Peer Review Network, updating our policy templates, and the Policy Project running several skill-building courses for policy advisors and managers.
• The Strategy Unit is now fully staffed with advisors from diverse backgrounds and skillsets, and is advising on a range of policy issues that are challenges and opportunities which will have long-term implications for Aotearoa New Zealand.
• Our Legal team were named supreme winners at the 2022 Government Legal Network Awards, recognising their contribution in supporting the system-wide COVID-19 response and move to the COVID-19 Protection Framework, navigating the legal implications of the policy settings to support government and agencies to lawfully achieve their objectives.

First choice employer

What we achieved in 2021/22

• We implemented a range of new sourcing channels, including advertising through a wider range of job boards targeting Māori and Pacific peoples, and working closely with the Ministry for Ethnic Communities when jobs are advertised. Recruitment of staff to work on the RCOI into the terrorist attack on Christchurch masjidain was used to test different recruitment approaches to attract more diverse applicants. This was very successful with high calibre staff from very diverse backgrounds appointed into these roles.
• Our gender pay gap reduced from 14.5% to 12.6%. Our 2021/22 Action Plan was published on our website.
• Our all-staff Te Hono events, Leadership Forums, Chief Executive Awards and Kōrero Rangatira speaker series helped us to connect with each other, our mahi and achievements, and to hear diverse perspectives and insights to help shape our work.
• We continued to provide formal development opportunities for our people. These have been focused on supporting our internal priorities - building te ao Māori capability, improving cultural competence and improving the quality of policy advice.
• The Culture and Engagement Network, made up of representatives from across DPMC and NEMA, continued to help us focus on our shared values. The network creates opportunities for networking, acts as a channel for feedback, and provides support to our employee-led networks. We have five employee-led networks - with three new networks established over the last year.
• We set the foundations for creating a Māori-capable organisation, setting two plans to help us achieve this (see page 25 for more information).

Well-positioned to deliver, now and in the future

What we achieved in 2021/22

• As part of delivering our enduring roles, we aim to be an agile, flexible organisation capable of gearing up to deliver new functions in response to the emerging priorities of the government of the day. Our size and spending patterns fluctuate accordingly, using a flexible workforce of permanent, fixed term, secondee, contractor and consultancy resources. In 2021/22, this resulted in growing newly established business groups; offboarding within groups (eg, COVID-19 Group, Health Transition Unit), as work concluded or was transferred to other agencies; and growing existing groups (eg, National Security Group) to support other new responsibilities. During the year, we onboarded a total of 259 people and offboarded 246 people; the majority of these were secondees and fixed-term employees. The impact of this is significant on a small department, with a permanent workforce of 199 people, as all new staff needed to be inducted and supported to be effective in their roles.
• We continued to maintain a healthy and safe working environment over the last year. Key achievements include developing a COVID-19 vaccination policy, redeveloping our monthly health and safety reporting process to provide more consistency and visibility, and consistently achieving over 90% completion of health and safety inductions. We implemented professional supervision to support staff who were being exposed to challenging experiences or information as part of their day‑to‑day job.
• We also began developing online health and safety training material to consolidate and improve the health and safety induction process, ensuring people's understanding of individual and the Department's health and safety responsibilities.
• An internal survey showed that our people continue to take security very seriously. We completed the yearly Protective Security Requirements self-assessment to ensure we meet all mandatory protective requirements and have used the results from that to drive future work to maintain and uplift our security maturity.
• We embedded our Flexible Working By-Default policy and guidelines, which were developed in 2020/21, across the organisation to benefit employees and the Department.
• Our two ELT Board subcommittees continued to support the delivery of our strategic direction, and the Risk and Assurance Committee provided oversight of our risk and assurance activities to give the Chief Executive direct and independent advice.
• For information on our achievements relating to diversity and inclusion, refer to page 27 which includes reporting against the five Papa Pounamu focus areas.

Progress against our indicators

Indicator	Desired trend	Progress 2020/21	Progress 2021/22	Outcome this contributes to
Stakeholder satisfaction with system leadership and the way we engage with others	-	Indicator  under development	Indicator  under development[4]	Strengthen how we work with others
Māori capability of our workforce	↑	●	✔	Create a Māori capable organisation
Diversity of workforce	↑	✔	○	Our workforce reflects the diversity of Aotearoa New Zealand
Gender pay gap	↓	✔	✔	Equitable and fair employment
Staff satisfaction	↑	✔	○	Engaged and high performing workforce, well positioned to deliver
Unplanned turnover	↓	✔	✗[5]	Engaged and high performing workforce, well positioned to deliver

Key to the indicators:    ↑ Increase    → Maintain    ↓ Decrease    ✔ On track    ✗ Not on track     ● No progress to report    ○ No change

Building our te ao Māori capability

Māori Language planning

We developed a te reo Māori plan, shared across DPMC and NEMA, supporting te reo Māori as a taonga in te ao Māori. The plan is informed by Maihi Karauna - the Crown’s Strategy for Māori Language Revitalisation 2019-2023.

Our plan is structured around the three outcome areas of the strategy: Aotearoatanga - nationhood, mātauranga - knowledge and skills, and hononga - engagement. Progress we have made towards the success indicators set in our plan is summarised below.

Indicator/action		Progress in 2021/22
Aotearoatanga	Develop minimum expectations for external suppliers to ensure our te reo Māori aspirations are reflected in contracted work	☑
	Review procurement practices to ensure we value and, where appropriate, require te reo Māori skills in external communications work	☑
	Review our technology products and support to ensure appropriate use of macrons	☑
	All external publications and events use te reo Māori appropriately, with visual identity and name reviewed	✔
	Job descriptions have an introductory paragraph in te reo Māori and job titles reflect te reo Māori	✔
Mātauranga	Provide self-assessment tools to enable employees to set development goals and ensure development opportunities cater for employees at all stages of their te reo Māori journey	☑
	Improve reference guides and other tools	☑
	We can say, pronounce and understand key phrases related to our work in te reo Māori	✔
	Support those wishing to develop higher levels of skill in mihi whakatau, pōwhiri and other tikanga practices	✔
	Increased usage of te reo Māori by leaders, internal communications and in forums	✔
Hononga	People leaders prioritise their support and encourage staff engaging with Māori to access te reo Māori learning and development opportunities	✔
	Induction refreshed to ensure those engaging with Māori are aware of the te reo Māori plan's aspirations, tools and resources	☑
	We can open and close a hui in te reo, recite our pepeha and sing a basic waiata	✔
	Development opportunities are provided to engagement staff to integrate their understanding of te reo Māori with tikanga	✔

Key to the indicators:    ☑ Complete/achieved    ✔On track

Whāinga Amorangi

We also developed a shared DPMC and NEMA Whāinga Amorangi plan in 2021/22. The plan is our starting point and our aspiration will continue to grow as we make progress on this shared kaupapa. The plan focuses on two capability areas - New Zealand history/Treaty of Waitangi literacy and te reo Māori. For each of these areas, we have set aspirations, actions and measures. Our progress against the actions and measures for the New Zealand history/Treaty of Waitangi outcome area is summarised below, and progress related to te reo Māori is outlined above.

Indicator/action	Progress in 2021/22
Support our staff to identify their learning needs and access development opportunities with a learning needs assessment launched by 31 October 2021	☑
Provide a range of learning options on New Zealand history/Te Tiriti by 30 June 2022	✔
Build two relevant talks into our Kōrero Speaker Series in 2021/22	☑
Actively promote learning opportunities to staff and their people leaders
Percentage of staff who report that they have:	●[6]
attended a course (in person or online)	65%
read an article	72%
attended a Kōrero Speaker event	58%
completed other relevant learning	37%
Percentage of employees who say that they are ‘Not at all confident' to describe key historical moments in the Māori Crown relationship from a Māori and Pākehā perspective decreases from 31% to 15% by 30 June 2022	✗ 26%

Key to the indicators:    ☑ Complete/achieved    ✗ Not achieved    ✔ On track     ● No progress to report

Diversity, equity and inclusion

This plan was contributed to by people across DPMC and NEMA, with people telling us they want to:

• hear conversations that embrace and value difference, and focus on how we can make equitable change and positive differences for all New Zealanders;
• feel a strengthened sense of inclusion, where we can all bring our best and true self to work;
• experience environments and leaders fostering and modelling a more diverse and inclusive culture with words, actions, systems and processes;
• understand a variety of worldviews and how they impact our mahi; and
• see a workforce that is more diverse, and more reflective of the Aotearoa New Zealand population.

Our plan is sponsored by a member of the Executive Leadership Team, who is connected with other sponsors in the public service. DPMC is also working with other security and intelligence agencies on collective efforts to build a more diverse workforce and inclusive sector.

Te Taunaki, the Public Service Census, told us that people at DPMC agree they “feel accepted as a valued member of the team” and that they “feel comfortable being [themselves] at work”. The survey was done before our diversity and inclusion plan was released and showed what needed more attention, including promoting an inclusive environment and access to employee-led networks.

The DPMC Kōrero Mai survey, held in March 2022, looked at our employee experience. We found our engagement level held steady since the end of 2020 - an achievement to celebrate in what has been a challenging 18 months. People at DPMC are committed to the work we do, have a good sense of team and are focusing on our priorities. We also have things to work on, including creating time for professional development and increasing diversity of thought.

Our actions have been clustered around the Papa Pounamu framework. Overall, we can see an impact from our actions, but we have further to go. Progress against each of the Papa Pounamu priority areas is outlined below.

Addressing Bias

Unconscious bias learning is available online for all staff at DPMC and NEMA. We encourage completion of this learning for all people part of a recruitment and selection panel. We asked people leaders in late 2021 and over half had either completed this online learning or completed previous training. New online material will be launched in 2022/23.

DPMC and NEMA have an Accessibility and Disability Plan, which brings together the positive changes we are making to contribute to the public sector being accessible to and inclusive of disabled people.

Part of addressing bias and building cultural competence is looking at our systems and policies. Across DPMC and NEMA last year more information was provided to people leaders about mitigating bias in the performance and development cycle. To better enable diversity, equity and inclusion, changes have been made to internal policies relating to recruitment and selection, parental leave, career progression, and koha and gifts of cultural recognition.

Cultural Competence

Improving cultural competence is one of three internal priorities at DPMC and NEMA. It is included in individual development plan templates for all people, encouraging everyone to take action.

One of the ways we bring diverse perspectives and information to our people is through a regular speaker series. External speakers this year have included topics on Māori-Crown relations, disability issues, Treaty-inspired future, climate change, and experiences of rainbow and takatāpui people. We routinely get around 70 people attending these sessions.

We have participated in the Ministry for Ethnic Communities graduate programme, with six people working across DPMC and NEMA, as well as having two interns from the Tupu Tai Pasifika Internship Programme.

In addition, DPMC rolled out the Mana Āki programme in early 2022; a cultural competency programme designed by and for the public sector which combines online learning modules with team discussion. Just over half of all teams were either underway or had completed this programme by year end. One comment from a staff member was “The group discussions have been a platform to hear different ideas that otherwise wouldn't have been surfaced, about how we can improve our cultural competence, both as individuals, and together.”

In addition to Mana Āki, we have started promoting team development as part of improving cultural competency, complementing a traditional individual focus on development with a collective approach. It builds understanding and awareness of others while working together to build team capability. This brings a different cultural dimension and reflects more diverse ways of learning, while building a more inclusive team environment.

Inclusive Leadership

Guidance for DPMC and NEMA people leaders on staff induction was revised during the year to more clearly explain how to make induction welcoming, inclusive and thoughtful. It gives practical information on questions to ask new team members and conversations to have, to be more open and inclusive.

Inclusive leadership conversations were had at all levels of DPMC, using the material from the Leadership Development Centre. This included sessions with the Executive Leadership Team, people leaders (with approximately half of leaders attending) and at our DPMC forum, Te Hono, which approximately half of our staff attended.

These were rich discussions where people reflected on personal experiences and creating positive experiences for teams and colleagues across DPMC. The decision was made to have this conversation with all people because everyone can be an inclusive leader, regardless of job title. Further work on inclusive leadership, along with NEMA, is being planned for the coming year.

Building Relationships

The DPMC and NEMA regular speaker series also features internal speakers. This is a helpful way for people to understand work happening across the Department and connect with colleagues.

Induction sessions are held with people new to both DPMC and NEMA to help them understand more about the Department, including diversity and inclusion issues. Held online, recent starters are able to meet other new people. These sessions get positive feedback from attendees.

The Kōrero Mai survey run across DPMC and NEMA also gave teams an opportunity to discuss results and any actions they wish to take. Team activity in this way builds connections and gives people another shared goal.

Employee-led Networks

This year has seen a big increase in our employee-led networks. There are five networks across DPMC and NEMA: Women’s, Rainbow, Interfaith, Young Professionals and Tai Ora (Climate Change and Sustainability).

These networks have had a large presence in our internal communications, as well as running activities including promotions of days/weeks relevant to the network, community connection opportunities, organising speakers, and informative articles and presentations.

We held a network expo at Te Hono (DPMC staff only) where each employee-led network talked about who they are and what they do. Anecdotal feedback from staff was this session, and the visibility of our networks, is very positive and people are learning from them. One example of how we work with our networks was a discussion with the Rainbow Network about inclusive language and creating a guide for staff. This is now in development and will be discussed with all staff.

To help promote and support employee-led networks, we documented a simple process for setting up a network. It includes a guide for networks to access funding to support their activities.

DPMC and NEMA have other networks that people can be part of and have views represented at. This includes Pou Tangata (building Māori capability), Peer Review Network (improving the quality and consistency of peer review), and the Culture and Engagement Network (a leadership-led group with representatives from across DPMC and NEMA and all employee-led networks).

Looking ahead, we will do more promotion of cross‑agency employee-led networks, to create more opportunities for people looking for a network and to establish relationships across the public service.

Our workforce[7]

 

Carbon Neutral Government Programme

In response to the Government's announcement of a Climate Emergency in 2020, DPMC[8] has actively participated in the Carbon Neutral Government Programme (CNGP). The programme aims to accelerate emissions reductions across the public sector and offset remaining gross emissions from 2025 to achieve carbon neutrality.

DPMC has made substantial progress in meeting our CNGP requirements. We worked with Toitū EnviroCare (Enviro Mark Solutions Limited) to ascertain our commitments and have measured and verified departmental emissions for each year from 1 July 2019 through to 30 June 2022.

Independent verification

We are proud to have achieved Toitū Carbonreduce Certification in June 2022 and will continue to measure, manage, and reduce our carbon emission in line with ISO14064-1:2018.

Total annual emissions and their source

 

In our base year, we emitted 924.61 tonnes of carbon dioxide equivalent (tCO₂e). In the following year our operations were impacted by COVID-19 with 611.41 tCO₂e emitted. This year we were able to embed flexible working arrangements and rapidly adapt to virtual meeting technologies, limiting an increase in emissions to a total of 815.93 tCO₂e while travel restrictions remained in place for much of the year.

Emissions profile broken down by category and total annual emissions

Category		Scope	2019/20 (tCO2e)	2020/21 (tCO2e)	2021/22 (tCO2e)
1	Direct emissions Natural Gas Transport fuels Fuel use for generators Refrigerants LPG bottles	Scope 1	124.73	205.08	177.13
2	Indirect emissions from imported energy Electricity use	Scope 2	80.96	104.78	111.54
3	Indirect emissions from transportation Air Travel Rental vehicles use Taxis and rideshare Accommodation Staff working from home	Scope 3	682.35	258.47	472.55
4	Indirect emissions from products and services used by organisation Transmission of energy Water supply and treatment Waste disposal	Scope 3	36.57	43.09	54.71
5	Indirect emissions associated with the use of products and services from the organisation	Scope 3	0	0	0
6	Indirect emissions from other sources		0	0	0
Total Gross Emissions (tCO2e)			924.61	611.41	815.93
Change in gross emissions from previous financial year				-33.87%	33.45%
Change in gross emissions since base year				-33.87%	-11.75%

The table above shows our greenhouse gas emissions profile broken down by the four CNGP Categories[9] applicable to DPMC. Emissions from transportation (Category 3) are the largest contributor to greenhouse gas emissions, with air travel being the primary emissions source. Emissions from air travel have not increased to pre-COVID-19 levels as in some situations virtual meeting technologies were able to be used. Domestic air travel emissions increased slightly as our work supporting the Governor-General and Prime Minister's engagements resumed.

Total transport emissions (tCO₂e) 2019/20 to 2021/22

 

Emissions intensity by FTE and expenditure

Since the base year, our work programme and number of staff have increased. Despite this growth, we decreased our emissions intensity while continuing to deliver impactful work. Our emissions intensity has decreased by almost half from 4.65 tCO₂e to 2.67 tCO₂e per full-time equivalent staff member (FTE) as shown below.

Full-time Equivalents and Expenditure for 2021/22

KPI	2019/20	2020/21	2021/22
FTEs	198.99	284.57	305.35
Expenditure ($m)[10]			157.18
Emissions intensity
Total gross emissions per FTE (tCO2e)	4.65	2.15	2.67
Total gross emissions per million dollars of expenditure (tCO2e)			5.19

Reducing our emissions

In June 2022, we launched our Emissions Reduction Plan for the following three years. This sets out our intentions and an action-based pathway for reducing emissions in line with the Government's commitment to keep global warming to less than 1.5 degrees of warming. These actions include a focus on facilitating climate positive behaviours in our work.

As part of our obligations, we have committed to the following targets:

• 2025 target: Gross emission (all Categories) to be no more than 726.81 tCO2e - a 21% reduction in gross emission compared to base year.
• 2030 target: Gross emission (all Categories) to be no more than 533.41 tCO₂e - a 42% reduction in gross emission compared to base year.

Our reduction plan and future reporting

Our Emissions Reduction Plan will enable us to reduce emissions where possible through understanding and reviewing our operation and business travel behaviours. This Plan uses several behavioural and investment levers to achieve our emissions reduction commitments and CNGP offsetting requirements.

Highlights

Significant progress on targets set out in our Emissions Reduction Plan has been made, including:

• an Electric Vehicle purchased in August 2021 for use by the Governor-General with charging infrastructure installed in Wellington and Auckland;
• Vehicle Fleet Optimisation and Transition plan approved in November 2021;
• updated Motor Vehicle Policy embeds climate positive decision-making on business travel and fleet management;
• worked with our preferred travel provider to promote more sustainable modes of transportation and provide guidance to staff when booking travel;
• worked with finance business partners to increase data quality by developing new codes and associated coder guidance for electric vehicle charging and fuel; and
• reallocated resources to ensure ongoing leadership and implementation of our Emissions Reduction Plan and CNGP commitments.

This Plan is complementary to the efforts of Tai Ora, our Climate Change and Sustainability staff-led network. Established in June 2022, Tai Ora is sponsored by a member of the Executive Leadership Team Board. Its mahi includes support for achieving our Emissions Reduction Plan, advocating for changes in behaviours and actions, and incorporating te ao Māori perspectives into our mahi.

Improving our data

An important part of our Emissions Reduction Plan is a commitment to improving data quality and understanding how we can reduce emissions. Our current emissions reporting indicates a high concentration in air travel. In the next year we intend to review our business-related travel to create necessary insights that will foster climate positive behaviours in our engagement with both domestic and international partners.

National Emergency Management Agency Annual Report 2021/22 | Te Rākau Whakamarumaru Pūrongo-ā-tau 2021/22#

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Introduction from the Chief Executive | Kupu whakataki a te Tumu Whakarae#

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We are facing new kinds of hazards along with increasing frequency and severity of familiar threats. In the 2021/22 year we responded, with various kinds of support, to 15 emergency events. These included the eruption of Hunga Tonga-Hunga Ha'apai, fires, COVID-19 resurgences, a tornado and multiple severe weather and flooding events across the country, especially on the West Coast of Te Wai Pounamu, Tairāwhiti, Canterbury and Marlborough. The emergency management environment is becoming more complex and demanding, as we balance preparation, response, and recovery.

This year we have supported three Ministers for Emergency Management: Hon Kiri Allan, Hon Kris Faafoi (as Acting Minister) and Hon Kieran McAnulty.

I have been impressed with the progress our National Emergency Management Agency Te Rākau Whakamarumaru (NEMA) team has made in 2021/22. I have seen our developing role as steward, operator and assurer of the emergency management sector in Aotearoa be played out across risk reduction, readiness, response and recovery activities.

As NEMA has continued to establish itself, increasing in capacity, capability and resourcing, we have put the safety and wellbeing of people at the heart of our work. There has been a focus on relationships and partnerships in the last year.

In May 2022, we were able to host our first all-staff ‘NEMA Day' since COVID-19 arrived in Aotearoa. This came after a lengthy period of working in cohorts; a measure taken to ensure we remain response-ready at all times. It felt like a big step, having whole teams together again, a pōwhiri for new recruits, and sharing our work in person. We were lucky to have Civil Defence Emergency Management (CDEM) group representatives present to help launch the partnership charter between CDEM groups and NEMA; the first of its kind and a major collaboration project from the past 12 months. This charter provides a framework for how NEMA and CDEM groups will work together, communicate, and collaborate. This marks a significant shift in our relationship, recognising the roles we all play.

Alongside growing our partnerships with CDEM groups, NEMA has prioritised deepening our partnerships with iwi and Māori, Pasifika, and communities that are disproportionately impacted by emergency events. In April and May 2022, we launched a project to make our Get Ready website more diverse and user friendly. This project has made the website available in three additional languages, with seven more to come. The first formal Whāinga Amorangi plan was completed to reflect our business priority to create a Māori capable organisation. We know our efforts in our te reo Māori and tikanga have been exciting for our people.

As always, our other key priorities have been reducing risk, improving readiness and enhancing system capability.

In May 2022 we reached another major milestone, officially opening a Monitoring, Alerting and Reporting centre. This new centre will in time replace our Duty system. We will be able to deliver greater situational awareness of emerging risks, better information sharing with CDEM groups and other 24/7 centres, and faster responses. CDEM groups, local authorities and communities will continue to receive the support they need at a national level, while also getting consistent messages about actions or precautions they can take.

NEMA has also invested in our workforce capability and the professionalisation of emergency management in Aotearoa. This year we have launched a National Training Package for the Coordinated Incident Management System. The goal of this is to strengthen emergency management capability, consistency, and interoperability across Aotearoa. It has been a truly collaborative exercise, across the sector, serving as an example of what can be achieved when an entire system comes together.

NEMA remains committed to improving our cultural competency, attracting diverse candidates and incorporating te ao Māori into the emergency management system. The establishment of our new Diversity and Inclusion reference group, te reo Māori me ona tikanga capability programme and the creation of our gender pay gap action plan will continue to benefit us in years to come.

We also progressed a comprehensive legislative and regulatory change programme to ensure the CDEM Act and National CDEM Plan are fit for purpose and realise the vision of the National Disaster Resilience Strategy.

We have supported the all-of-government response to COVID-19. This included the development of the Care in the Community health and welfare programme. We maintained clear guidance and protocols for our staff which were designed to avoid large numbers or entire teams from having COVID-19 at the same time. This has ensured that, at any given moment, we have been ready and able to respond to an emergency.

Finally, a thank you to all NEMA staff for their tireless efforts in leading the way to reducing risk, being ready for, responding to and recovering from emergencies.

Statement of Responsibility

I am responsible, as Chief Executive of the National Emergency Management Agency Te Rākau Whakamarumaru, for the accuracy of any end-of-year performance information prepared by NEMA, whether or not that information is included in the Annual Report.

Dave Gawn
Chief Executive
National Emergency Management Agency

Who we are and what we do | Ko wai mātou, he aha ā mātou mahi#

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Overview of our Agency

NEMA works to build a safe and resilient Aotearoa New Zealand by empowering communities before, during and after emergencies.

NEMA's key functions are steward, operator and assurer of the emergency management system. The roles of steward and assurer are still being developed and are at an early stage of development, reflecting NEMA's recent establishment.

As steward, NEMA looks to provide strategic leadership for risk reduction, readiness, response and recovery activities, and builds emergency management capability and capacity.

As operator, NEMA leads or supports the response to and recovery from emergencies while also supporting the operation of the emergency management system.

As assurer, NEMA intends to provide assurance that the emergency management system is fit for purpose.

Depending on the emergency, NEMA leads or supports the response and recovery. NEMA coordinates central government's response and recovery functions for national emergencies. All emergencies in the past year were local or regional emergencies. NEMA's role was to support the management of local emergencies by CDEM Groups and, where necessary coordinate other national-level support. NEMA leads on geological and meteorological national emergencies, and supports other lead agencies in the response and recovery of other hazard events.

NEMA works with a diverse range of organisations and bodies, including central and local government, communities, iwi, emergency services, lifeline utilities, private sector organisations, education providers, researchers, and non-government organisations and business to ensure responses to, and recoveries from, emergencies are coordinated, integrated and effective.

NEMA also holds key international relationships with emergency management counterparts overseas and engages with them on emergency management best practice and operational matters.

NEMA's work is underpinned by the Civil Defence Emergency Management Act (CDEM Act) 2002, the National Disaster Resilience Strategy and the National CDEM Plan.

Our workforce[11]

 

The year at a glance | Te tau kua hipa#

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Our numbers at a glance#

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Our strategic framework#

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Our performance | Ko tā mātou mahi#

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What we achieved in 2021/22

People living in Aotearoa New Zealand are, and feel, resilient safe and secure

We worked to make the Emergency Management System cohesive, collaborative, and trusted, enabling cross-agency leadership

Over the last year, as well as continuing to support CDEM groups during emergency events, we focused on developing and deepening our relationship with them. We collaborated with CDEM groups to develop and implement the first Partnership Charter between NEMA and CDEM groups.

We progressed an ambitious and comprehensive Emergency Management reform programme. This year's work towards this programme included policy work for a new Emergency Management Bill to replace the CDEM Act 2002 and reviewing the National Civil Defence Emergency Management Plan Order 2015.

We continued to integrate te ao Māori into this Emergency Management reform programme, and developed Te Kāhui Matāra, NEMA's organisational Māori strategy and work programme. Te Kāhui Matāra involves:

• NEMA and the emergency management sector applying te ao Māori and Matauranga Māori principles into their mahi; and
• the emergency management sector working with our Māori partners, acknowledging the value of meaningful and mutually beneficial tiriti partnerships.

We have invested in our people and capability, creating a training pathway for emergency management practitioners, which includes undertaking unit standard assessments in the Coordinated Incident Management System.

We ranked fourth in the Kantar Public Sector Reputation Index Survey 2022. We are the second most trusted agency, and ranked third for social responsibility and fairness. NEMA also ranked fourth in terms of having meaningful impact on the public and the things they care about.

Effective reduction, readiness, response and recovery to complex national security risks, emergencies and adverse events

We established a 24/7 Monitoring, Alerting and Reporting Centre in 2021/22. This will enable a better, more timely response to natural disasters and other emergencies. It will also enhance engagement and information sharing with CDEM groups, emergency services, critical infrastructure providers, science organisations and other stakeholders. This proactive capability will provide a range of intelligence products and contextual briefings to support local responses.

We supported the all-of-government response for managing the ongoing COVID-19 pandemic. This included contingency planning for future variants and looking ahead to arrangements that will support the long-term COVID-19 strategy. NEMA's particular focus was to ensure that we and the wider CDEM sector are ‘match fit' for responding to concurrent emergencies. For example, by ensuring we have a workforce and facilities ready and safe to use.

We continued to support regions and districts in the recovery from emergencies, including multiple severe weather and flooding events, fires and volcanic eruption. The Emergency Management Assistance Team (EMAT) was deployed four times this year: to Buller in July 2021, Hokitika in November 2021, and twice to Westport in February 2022.

The Buller flooding was significant, with 21 EMAT staff and a further 150 staff from across the emergency management sector deployed to help the region. This included the first operational deployment of an EMAT 50-person Deployable Coordination Centre, which provided essential additional habitation and facilities to the Buller Emergency Operations Centre.

Climate change will impact our line of work significantly. Although our role is not in prevention of climate change, we recognise our part to play in preparing for the effects, responding to and recovering from the effects of climate change. In the past year we:

• developed a NEMA Science Strategy and appointed a Chief Science Advisor;
• supported the development of the National Adaptation Plan as a contributing agency;
• established an International Engagement team to better support disaster resilience and rapid response capability in the Pacific; and
• established a Continuous Improvement Unit, that will develop a New Zealand Lessons Management Framework to better learn from past events to inform future responses.

Communities are more resilient, allowing them to be better placed to respond to and recover from emergencies

Our public education programme was aimed at a range of significant hazards facing Aotearoa. For one of Aotearoa's most prevalent and costly hazards, floods, we created two campaigns, both of which aimed to help people understand the dangers of flood water and encourage them to stay away:

• Get the Flood Out: an advertising campaign intended to prepare people for future floods; and
• Flood Waters are Deep Trouble: a campaign to be deployed when severe weather likely to result in flooding is forecast, or when flooding is already occurring.

This year we also launched the Own Your Zone, a tsunami evacuation zone advertising campaign supporting the release of the online Aotearoa Tsunami Evacuation Map. This campaign focused on people taking responsibility for knowing whether they live, work or go to school in a tsunami evacuation zone.

Alongside our annual initiatives such as our national earthquake and tsunami hikoi, ‘ShakeOut', and our test of the Emergency Mobile Alert system, we launched additional language versions of our Get Ready website: te reo Māori, New Zealand Sign Language, Gagana Samoa and Lea Faka-Tonga.

Building our organisational health and capability

This year we invested in professional development across both our agency and the wider emergency management sector. We launched the Coordinated Incident Management System (CIMS) National Training Package, improving consistency and capability of our workforce. This was largely possible thanks to our relationships across the sector and our previous year's effort to organise the organisation into emergency management and strategic enablement.

Flexible working by-default has been instrumental in our ability to carry on work during COVID-19 and has enabled us to attract candidates from a variety of backgrounds. Some NEMA staff work remotely, flexible hours, part-time and can buy-back leave. For much of the year NEMA worked in two cohorts to mitigate the risk of whole teams or large parts of NEMA all being COVID-19 positive or away sick at once. This, alongside formal testing and reporting protocols worked well, enabling us to be response-ready at all times.

To attract, recruit and develop a workforce that is representative of our communities, NEMA has welcomed Tupu Tai interns and ethnic communities graduates, NEMA leaders have completed unconscious bias training and we have created a gender pay gap action plan. NEMA also established a new Diversity and Inclusion reference group this year and continues to have strong representation on staff-led networks including the Rainbow Network, Pou Tangata and Women's Network.

Initiatives have been implemented to lift our capability and confidence in te ao Māori. NEMA shares DPMC's te reo Māori plan, supporting te reo Māori as a taonga in te ao Māori, and Whāinga Amorangi, an aspiration to grow our capability and knowledge of te tiriti o Waitangi and Aotearoa history. In February 2022, NEMA launched our te reo Māori me ona tikanga capability programme. This began with a flexible and tailored tikanga and te reo Māori course available for all staff.

Professional development is nurtured for all individuals employed at NEMA. Staff development is supported by DPMC processes and each employee has a development plan that is managed throughout the year to ensure continuous development. These plans include opportunities for developing staff outside NEMA. We share a health and safety policy with DPMC. However, due to the emergency related nature of NEMA's work we face some additional health and safety risks, so we are working on a NEMA specific health, safety and wellbeing plan.

For more information on progress related to shared DPMC and NEMA organisational health and capability objectives, refer to page 16 of the DPMC Annual Report.

Carbon Neutral Government Programme

In response to the Government's announcement of a Climate Emergency in 2020, NEMA has actively participated in the Carbon Neutral Government Programme (CNGP)[12]. The programme aims to accelerate emissions reductions across the public sector and offset remaining gross emissions from 2025 to achieve carbon neutrality.

NEMA has made significant progress in meeting CNGP requirements. We worked with Toitū EnviroCare (Enviro Mark Solutions Limited) to ascertain our commitments and have measured and verified departmental emissions from 1 July 2019 through to 30 June 2022.

Independent verification

We are proud to have achieved Toitū Carbonreduce Certification in June 2022 and will continue to measure, manage and reduce our carbon emission in line with ISO14064-1:2018.

Total annual emissions and their source

 

In our base year, we emitted 253.74 tonnes of carbon dioxide equivalent (tCO₂e). In the following year, our operations were impacted by COVID-19 with 248.98 tCO₂e emitted. This year we were able to embed flexible working arrangements and rapidly adapt to virtual meetings to reduce emission. However, we responded to a number of complex emergencies with an increase in emissions on our base year to a total of 306.76 tCO₂e.

Emissions profile broken down by scope and total annual emissions (tCO₂e)

Category		2019/20  (tCO2e)	2020/21 (tCO2e)	2021/22   (tCO2e)
1	Direct emissions Natural gas Transport fuels	36.66	39.08	53.76
2	Indirect emissions from imported energy Electricity use	7.34	17.09	19.60
3	Indirect emissions from transportation Air Travel Rental vehicles use Taxis and rideshare Accommodation Staff working from home	205.02	185.43	216.20
4	Indirect emissions from products and services used by organisation Transmission of energy Water supply and treatment Waste disposal	4.38	7.39	17.19
5	Indirect emissions associated with the use of products and services from the organisation	0	0	0
6	Indirect emissions from other sources	0	0	0
Total Gross Emissions (tCO2e)		253.40	248.98	306.76
Change in gross emissions from previous financial year			-1.88%	23.20%
Change in gross emissions since base year			-1.88%	21.05%

The table above shows our greenhouse gas emissions profile broken down by the four CNGP Categories[13] applicable to NEMA. Emissions from transportation (Category 3) are the largest contributor to greenhouse gas emission, with air travel being the primary emission source. Emissions from air travel have not increased significantly from pre-COVID-19 levels as in some situations virtual meeting technologies were able to be used. While our organisation more than doubled in size since July 2019, we only emitted 21% more greenhouse gases.

Total transport emissions (tCO₂e) 2019/20 to 2021/22

 

Emission intensity by FTE and expenditure

Since the base year, our work programme and number of staff have increased. Despite the growth, we limited the increase of our emissions intensity while continuing to respond to emergencies and deliver our work. With consideration to the increase in full-time equivalent staff member (FTE) by 2.3 times over two years, our emission intensity has decreased from 4.02 tCO₂e to 2.02 tCO₂e as shown below.

Full-time Equivalents and Expenditure for 2021/22

KPI	2019/20	2020/21	2021/22
FTEs	63.10	126.90	149.90
Expenditure ($m)[14]			36.93
Emissions intensity
Total gross emissions per FTE (tCO2e)	4.02	1.96	2.02
Total gross emissions per million dollars of expenditure (tCO2e)			8.31

Reducing our emissions

In June 2022, we launched our Emissions Reduction Plan for the following three years. This sets out our intentions and an action-based pathway for reducing emissions in line with the Government's commitment to limit emissions to 1.5 degrees of warming. These actions include a focus on facilitating climate positive behaviours in our work.

As part of our obligations, we have committed to the following targets:

• 2025 target: Gross emission (all Categories) to be no more than 200.19 tCO₂e - a 21% reduction in gross emissions compared to base year.
• 2030 target: Gross emission (all Categories) to be no more than 146.97 tCO₂e - a 42% reduction in gross emissions compared to base year.

Our reduction plan and future reporting

Our Emissions Reduction Plan will enable us to reduce emissions where possible through understanding and reviewing our operation and business travel behaviours. This Plan uses several behavioural and investment levers to achieve our emissions reduction commitments and CNGP offsetting requirements.

Highlights

Significant progress on targets set out in our Emissions Reduction Plan has been made, including:

• Vehicle Fleet Optimisation and Transition plan approved in November 2021;
• committed to replacing our leased fleet of combustion engine vehicles with Hybrid Electric Vehicles (HEV);
• updated Motor Vehicle Policy embeds climate positive decision-making on business travel and fleet management;
• worked with our preferred travel provider to promote more sustainable modes of transportation and provide guidance to staff when booking travel;
• worked with finance business partners to increase data quality by developing new codes and associated coder guidance for electric vehicle charging and fuel; and
• obtained advice and support from DPMC for implementation of our Emissions Reduction Plan and CNGP commitments.

This Plan is complementary to the efforts of Tai Ora, our Climate Change and Sustainability staff-led network. Established in June 2022, Tai Ora is sponsored by our Chief Executive. Its mahi includes support for achieving our Emissions Reduction Plan, advocating for changes in behaviours and actions, and incorporating te ao Māori perspectives into our mahi.

Improving our data

An important part of our Emissions Reduction Plan is a commitment to improving data quality and understanding how we can reduce emissions. Our current emissions reporting indicates a high concentration in air travel. In the next year we intend to review our business-related travel to create necessary insights that will foster climate positive behaviours in our engagement with both domestic and international partners.

Our performance reporting | Tā mātou pūrongo mahi#

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Appropriation statements#

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Statement of Budgeted and Actual Departmental and Non-departmental Expenses and Capital Expenditure Against Appropriations

for the year ended 30 June 2022

	2021/22   Actual   $000	2021/22  Budget  $000	2021/22 Supp. Estimates $000	Where performance information is reported
DEPARTMENTAL OUTPUT EXPENSES
Canterbury Earthquake Recovery	1,822	2,952	2,390	Our performance reporting section
COVID-19 All of Government Response	61,166	35,607	80,907	Our performance reporting section
Cyber Security	2,926	2,000	4,992	Our performance reporting section
Health and Disability System Reform	21,467	25,960	27,427	Our performance reporting section
Support for Inquiry into EQC	6	-	100	Our performance reporting section
TOTAL DEPARTMENTAL OUTPUT EXPENSES	87,387	66,519	115,816
DEPARTMENTAL CAPITAL EXPENDITURE
Department of the Prime Minister and Cabinet - Capital Expenditure PLA	734	1,251	2,501	Our performance reporting section
TOTAL DEPARTMENTAL CAPITAL EXPENDITURE	734	1,251	2,501
NON-DEPARTMENTAL OUTPUT EXPENSES
Centre of Excellence for Preventing and Countering Violent Extremism	500	700	505	Minister's Report appended to the DPMC Annual Report
TOTAL NON-DEPARTMENTAL OUTPUT EXPENSES	500	700	505
NON-DEPARTMENTAL OTHER EXPENSES
COVID-19: Civil Defence Emergency Management Group Welfare Costs	314	-	4,900	Minister's Report appended to the DPMC Annual Report
Governor-General's Programme PLA	1,360	1,500	1,500	Exempt under section 15D(2)(b)(iii) of the Public Finance Act 1989
Governor-General's Salary and Allowance PLA	652	787	787	Exempt under section 15D(2)(b)(ii) of the Public Finance Act 1989
Governor-General's Travel Outside New Zealand PLA	35	407	407	Exempt under section 15D(2)(b)(iii) of the Public Finance Act 1989
Local Authority Emergency Expenses PLA	8,808	5,000	5,000	Minister's Report appended to the DPMC Annual Report
Preventing and Countering Violent Extremism	173	-	195	Exempt under section 15D(2)(b)(iii) of the Public Finance Act 1989
Remuneration of Commissioners of Intelligence Warrants PLA	38	174	174	Exempt under section 15D(2)(b)(ii) of the Public Finance Act 1989
TOTAL NON-DEPARTMENTAL OTHER EXPENSES	11,380	7,868	12,963
MULTI-CATEGORY EXPENSES AND CAPITAL EXPENDITURE
Advice and Support Services MCA
DEPARTMENTAL OUTPUT EXPENSES
Advice and Support to Government and the Governor‑General	40,307	40,154	45,881	Our performance reporting section
NON-DEPARTMENTAL OTHER EXPENSES
Depreciation and Maintenance of Government House Buildings and Related Assets	1,680	2,292	2,832	Exempt under section 15D(2)(b)(ii) of the Public Finance Act 1989
Prime Minister's Chief Science Advisor Research Programme	870	120	870	Our performance reporting section
NON-DEPARTMENTAL CAPITAL EXPENDITURE
Government House - Capital Expenditure	464	550	750	Exempt under section 15D(2)(b)(iii) of the Public Finance Act 1989
TOTAL ADVICE AND SUPPORT SERVICES MCA	43,321	43,116	50,333
Emergency Management Leadership and Support MCA
DEPARTMENTAL OUTPUT EXPENSES
Advice and Support for Emergency Risk Reduction, Readiness, Response and Recovery	37,833	32,316	44,488	Our performance reporting section
NON-DEPARTMENTAL OTHER EXPENSES
Emergency Risk Reduction, Readiness, Response and Recovery	8,584	3,566	21,205	Exempt under section 15D(2)(b)(ii) of the Public Finance Act 1989
NON-DEPARTMENTAL CAPITAL EXPENDITURE
Capital Expenditure to Support Emergency Risk Reduction, Readiness, Response and Recovery	3,952	-	5,392	Our performance reporting section
TOTAL EMERGENCY MANAGEMENT LEADERSHIP AND SUPPORT MCA	50,369	35,882	71,085
TOTAL MULTI-CATEGORY EXPENSES AND CAPITAL EXPENDITURE	93,690	78,998	121,418
TOTAL ANNUAL AND PERMANENT APPROPRIATIONS	193,691	155,336	253,203

Statement of Departmental and Non-departmental Expenses and Capital Expenditure Incurred Without, or in Excess of Appropriation, or other Authority

for the year ended 30 June 2022

The Department has not incurred any departmental or non-departmental expenses or capital expenditure without, or in excess of appropriation, or other authority.

Statement of Capital Injections

for the year ended 30 June 2022

	2021/22 Actual $000	2021/22 Budget $000	2021/22 Supp. Estimates $000
Capital Injection	1,151	1,151	1,151

Statement of Capital Injections Without, or in Excess of, Authority

for the year ended 30 June 2022

DPMC has not received any capital injections during the year without, or in excess of, authority (2021: Nil).

Reporting against our appropriations#

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Canterbury Earthquake Recovery

This appropriation is intended to achieve support for the regeneration of greater Christchurch, including the ongoing provision of corporate capability.

What we achieved

Performance measure	Target 2021/22	Result 2020/21	Result 2021/22	Achieved
The responsible Minister is satisfied with the policy advice service (see Note 1)	4	4.79	4.6	✔

Note 1 - The Ministerial Policy Satisfaction Survey measures satisfaction with the quality of policy advice on a scale from 1 to 5, where 1 means never met expectations and 5 means always met expectations.

How much it cost

2020/21 Actual $000		2021/22 Actual $000	2021/22 Budget $000	2021/22 Supp. Estimates $000
5,580	Revenue Crown	2,252	2,952	2,252
648	Revenue Other	142	-	138
6,228	TOTAL REVENUE	2,394	2,952	2,390
3,145	Expenses	1,822	2,952	2,390
3,083	Net Surplus/(Deficit)	572	-	-

Expenditure was lower than budgeted due to the costs of transitioning Canterbury Earthquake Recovery-related activities to local authorities and winding down the Greater Christchurch Group within DPMC being lower than expected.

COVID-19 All of Government Response

This appropriation is intended to achieve effective leadership, coordination and delivery of the Government's response to COVID-19.

What we achieved

Performance measure	Target 2021/22	Result 2020/21	Result 2021/22	Achieved
The responsible Minister is satisfied with the policy advice service (see Note 1)	4	4	4.14	✔
Average score for assessed policy papers (see Note 2)	4	3.3	3.5	✗
Quality of policy advice papers - 70% score 3 or higher, 30% score 4 or higher and no more than 10% score 2 or less (see Note 2)	Achieved	Not achieved	Achieved	✔
The responsible Minister is satisfied with the coordination of the COVID-19 response system (see Note 1)	4	4	4	✔
The COVID-19 Chief Executives Board is satisfied with the leadership within the system (see Note 1)	4	4	5	✔
The National Response Leadership Team is satisfied that the National Resurgence Response Plan is used effectively in a resurgence, and/or remains up-to-date, robust and routinely tested (see Note 1)	4	4	3.7	✗
Exercises undertaken to ensure readiness to respond to the COVID-19 elimination strategy pillars	4	New measure	5	✔
The Unite Against COVID-19 campaign is recognised as effective in raising awareness, demonstrated by:
Percentage of New Zealanders who see relevance in the Unite Against COVID-19 campaign	85%	Revised measure	58%	✗
Percentage of New Zealanders who agree they are being told and/or have access to all the information they need about COVID-19	70%	Revised measure	62%	✗

Note 1 - The Minister's/Board's/Leadership Team's Satisfaction Survey measures satisfaction with the quality of advice and/or services on a scale from 1 to 5, where 1 means never met expectations and 5 means always met expectations.

Note 2 - A sample of the Department's policy advice was assessed by a panel using the Policy Quality Framework. There are two targets for reporting on overall policy advice: an average score and a distribution score. Policy advice is scored on a scale of 1 to 5, where 1 means unacceptable and 5 means outstanding. All first opinion policy functions contribute to one score across the Department of the Prime Minister and Cabinet. Separate reviews were undertaken for DPMC and NEMA in 2021/22, however prior year results include an average across both agencies.

How much it cost

2020/21 Actual $000		2021/22 Actual $000	2021/22 Budget $000	2021/22 Supp. Estimates $000
22,996	Revenue Crown	65,907	35,607	65,907
23	Revenue Other	8,377	-	15,000
23,019	TOTAL REVENUE	74,284	35,607	80,907
16,143	Expenses	61,166	35,607	80,907
6,876	Net Surplus/(Deficit)	13,118	-	-

Departmental expenditure exceeded original Budget due to higher expenditure for Unite Against COVID-19 publicity and new expenditure for COVID-19 Epidemiological Modelling, Disinformation Monitoring and Risk Assessment. Budget for these activities was included in baseline updates during the year. Departmental expenditure was lower than the Supplementary Estimates mainly due to expenditure for Unite Against COVID-19 publicity and Epidemiological Modelling, Disinformation Monitoring and Risk Assessment being lower than had been anticipated.

Cyber Security

This appropriation is intended to achieve improvement in New Zealand's protection from, and resilience to, cyber security threats and cybercrime.

What we achieved

Performance measure	Target 2021/22	Result 2020/21	Result 2021/22	Achieved
Delivery of the annual work programme as agreed by the Cyber Security Coordination Committee	Achieved	Partially achieved	Partially achieved	✗

How much it cost

2020/21 Actual $000		2021/22 Actual $000	2021/22 Budget $000	2021/22 Supp. Estimates $000
3,827	Revenue Crown	4,860	2,000	4,860
-	Revenue Other	-	-	132
3,827	TOTAL REVENUE	4,860	2,000	4,992
967	Expenses	2,926	2,000	4,992
2,860	Net Surplus/(Deficit)	1,934	-	-

Departmental expenditure was higher than originally budgeted due to contributions to some Cyber Security Strategy projects being supported by funding carried forward from 2020/21. Budget for these items was included in baseline updates during the year. The main reason for the underspend against the Supplementary Estimates is due to the timing for some 2021/22 planned initiatives for approved Cyber Security Strategy projects now being expected to occur in 2022/23.

Health and Disability System Reform

This appropriation is intended to achieve the policy and design work arising from the response to the Health and Disability System Review.

What we achieved

Performance measure	Target 2021/22	Result 2020/21	Result 2021/22	Achieved
The Minister of Health is satisfied with the policy advice service (see Note 1)	4	4.95	5	✔
Average score for assessed policy papers (see Note 2)	4	3.3	3.5	✗
Quality of policy advice papers - 70% score 3 or higher, 30% score 4 or higher and no more than 10% score 2 or less (see Note 2)	Achieved	Not achieved	Achieved	✔
The Ministerial Oversight Group is satisfied with progress against delivery of the Health System Reform Implementation Plan agreed by Cabinet (see Note 1)	4	New Measure	4.2	✔
The Minister of Health is satisfied with progress against delivery of the Health System Reform Implementation Plan agreed by Cabinet (see Note 1)	4	New Measure	5	✔

Note 1 - The Minister's/Board's Satisfaction Survey measures satisfaction with the quality of advice and/or services on a scale from 1 to 5, where 1 means never met expectations and 5 means always met expectations.

Note 2 - A sample of the Department's policy advice was assessed by a panel using the Policy Quality Framework. There are two targets for reporting on overall policy advice: an average score and a distribution score. Policy advice is scored on a scale of 1 to 5, where 1 means unacceptable and 5 means outstanding. All first opinion policy functions contribute to one score across the Department of the Prime Minister and Cabinet. Separate reviews were undertaken for DPMC and NEMA in 2021/22, however prior year results include an average across both agencies.

How much it cost

2020/21 Actual $000		2021/22 Actual $000	2021/22 Budget $000	2021/22 Supp. Estimates $000
13,000	Revenue Crown	27,427	25,960	27,427
13,000	TOTAL REVENUE	27,427	25,960	27,427
7,033	Expenses	21,467	25,960	27,427
5,967	Net Surplus/(Deficit)	5,960	-	-

Expenditure was lower than the original Budget and the Supplementary Estimates due to the earlier than anticipated transition of functions and activities to the Ministry of Health and the two new health agencies (interim Health New Zealand and interim Māori Health Authority).

Support for Inquiry into EQC

This appropriation is intended to achieve effective support for the Inquiry into the Earthquake Commission.

What we achieved

Performance measure	Target 2021/22	Result 2020/21	Result 2021/22	Achieved
The public can access information from the Public Inquiry into the Earthquake Commission website	Achieved	Achieved	Achieved	✔

How much it cost

2020/21 Actual $000		2021/22 Actual $000	2021/22 Budget $000	2021/22 Supp. Estimates $000
200	Revenue Crown	100	-	100
200	TOTAL REVENUE	100	-	100
33	Expenses	6	-	100
167	Net Surplus/(Deficit)	94	-	-

Expenditure was higher than original Budget due to it relating to activity that continued from the previous year. Budget for this was included in baseline updates during the year. Expenditure was lower than the Supplementary Estimates due to there being very few remaining residual costs after the windup of the Inquiry.

Department of the Prime Minister and Cabinet - Capital Expenditure PLA

This appropriation is intended to achieve the renewal, upgrade or redesign of assets in support of the delivery of the Department's services.

What we achieved

In 2021/22, expenditure was in accordance with the Department's approved capital asset management plan.

How much it cost

2020/21 Actual $000		2021/22 Actual $000	2021/22 Budget $000	2021/22 Supp. Estimates $000
456	Property, Plant and Equipment	734	1,201	2,451
185	Intangibles	-	-	-
-	Other	-	50	50
641	TOTAL EXPENSES	734	1,251	2,501

Advice and Support Services

This appropriation is intended to enable and facilitate decision-making by executive government through the delivery of policy advice and support services to the Prime Minister, Cabinet and its committees, the Executive Council and the Governor-General.

What we achieved

Performance measure	Target 2021/22	Result 2020/21	Result 2021/22	Achieved
The Prime Minister is satisfied with the services and support provided by the Department of the Prime Minister and Cabinet (see Note 1)	4	4.63	4.7	✔
The Governor-General is satisfied with the services and support provided by the Department of the Prime Minister and Cabinet (see Note 1)	4	4.66	4.6	✔

Note 1 - The Governor-General/Prime Minister's satisfaction is measured on a scale from 1 to 5, where 1 means never met expectations and 5 means always met expectations.

How much it cost

2020/21 Actual $000		2021/22 Actual $000	2021/22 Budget $000	2021/22 Supp. Estimates $000
34,135	Revenue Crown	44,110	40,124	44,109
1,650	Revenue Other	1,637	30	1,772
35,785	TOTAL REVENUE	45,747	40,154	45,881
33,771	Departmental Expenses	40,307	40,154	45,881
2,014	Net Surplus/(Deficit)	5,440	-	-
1,857	Non-departmental Expenses	2,550	2,412	3,702
688	Non-departmental Capital Expenditure	464	550	750

Departmental expenditure was slightly higher than originally budgeted due to unbudgeted third party funded activity for the Policy Project, and expenditure related to funding carried forward from 2020/21. Budget for these items was included in baseline updates during the year. The underspend against the Supplementary Estimates was mainly due to the Child Welfare Strategy Refresh being carried over to 2022/23, the COVID-19 Service recognition project continuing into 2022/23, and later than expected expenditure on the work programme for the Cabinet system.

Non-Departmental expenditure was underspent against the Supplementary Estimates due to some Government House planned maintenance and capital projects now being expected to be completed in 2022/23.

Category: Advice and Support to Government and the Governor‑General

This category is intended to support decision-making by the Prime Minister and Cabinet, and provide support services to the Prime Minister, Cabinet and its committees, the Executive Council and the Governor-General, as well as administrative support to maintain the Governor-General's residences.

What we achieved

Performance measure	Target 2021/22	Result 2020/21	Result 2021/22	Achieved
Advice to Government
The Prime Minister is satisfied with the policy advice service (see Note 1)	4	4.75	4.8	✔
The Minister for Child Poverty Reduction is satisfied with the policy advice service (see Note 1)	4	4.96	4.9	✔
The Minister for the Digital Economy and Communications is satisfied with the policy advice service (see Note 1)	4	4.25	3.4	✗
The Minister for National Security and Intelligence is satisfied with the policy advice service (see Note 1)	4	4.62	4.6	✔
Average score for assessed policy papers (see Note 2)	4	3.3	3.5	✗
Quality of policy advice papers - 70% score 3 or higher, 30% score 4 or higher and no more than 10% score 2 or less (see Note 2)	Achieved	Not achieved	Achieved	✔
The Minister for National Security and Intelligence is satisfied with the leadership, co-ordination and collaboration within the national security and intelligence system (see Note 1)	4	4.25	3.9	✗
The Lead Coordination Minister for the Government's Response to the Royal of Commission of Inquiry (RCOI) Report into the Terrorist Attack on the Christchurch Mosques is satisfied with the leadership, coordination and collaboration within the response to the RCOI's report (see Note 1)	4	New measure	4.75	✔
The Prime Minister is satisfied with the provision of intelligence assessments that support national security priorities (see Note 1)	4	4.13	4	✔
Average score of a sample of intelligence assessments reviewed by an external reviewer (see Note 3)	4	4.2	4.1	✔
The Deputy Prime Minister is satisfied with advice and support on priority government programmes and projects monitored by the Implementation Unit (see Note 1)	4	New measure	5	✔
Support to the Prime Minister, Cabinet and the Governor-General
The Prime Minister is satisfied with the support, secretariat and coordination services provided (see Note 1)	4	5	5	✔
Cabinet and Cabinet committee minutes requiring subsequent amendment (excluding amendments made as the result of Cabinet decisions)	0.5%	0.1%	0.5%	✔
Papers for Cabinet and Cabinet committee meetings will be published on CabNet by the close of business, two days before the meeting (subject to on-time lodgement in CabNet)	90%	96%	96%	✔
Cabinet minutes will be published on CabNet by the close of business, three days after the Cabinet meeting	95%	99%	96%	✔
The Governor-General is satisfied with the advisory and constitutional services provided (see Note 1)	4	4.69	4.5	✔
The Governor-General is satisfied with the programme and household services provided (see Note 1)	4	4.63	4.7	✔

Note 1 - The Governor-General/Prime Minister/Minister's Satisfaction Survey measures satisfaction with the quality of advice and/or services on a scale from 1 to 5, where 1 means never met expectations and 5 means always met expectations.

Note 2 - A sample of the Department's policy advice was assessed by a panel using the Policy Quality Framework. There are two targets for reporting on overall policy advice: an average score and a distribution score. Policy advice is scored on a scale of 1 to 5, where 1 means unacceptable and 5 means outstanding. All first opinion policy functions contribute to one score across the Department of the Prime Minister and Cabinet. Separate reviews were undertaken for DPMC and NEMA in 2021/22, however prior year results include an average across both agencies.

Note 3 - Intelligence assessments will be scored on a scale of 1 to 5, where 1 means unacceptable and 5 means outstanding.

How much it cost

2020/21 Actual $000		2021/22 Actual $000	2021/22 Budget $000	2021/22 Supp. Estimates $000
34,135	Revenue Crown	44,110	40,124	44,109
1,650	Revenue Other	1,637	30	1,772
35,785	TOTAL REVENUE	45,747	40,154	45,881
33,771	Departmental Expenses	40,307	40,154	45,881
2,014	Net Surplus/(Deficit)	5.440	-	-

Category: Prime Minister's Chief Science Advisor Research Programme

This category is intended to support the Prime Minister's Chief Science Advisor's specialised research programme.

What we achieved

Performance measure	Target 2021/22	Result 2020/21	Result 2021/22	Achieved
The Prime Minister is satisfied with the scientific advice provided, as measured using the Prime Minister's Satisfaction Survey (see Note 1) is at least:	4	5	5	✔

Note 1 - The Prime Minister's Satisfaction Survey measures satisfaction with the quality of advice and/or services on a scale from 1 to 5, where 1 means never met expectations and 5 means always met expectations.

How much it cost

2020/21 Actual $000		2021/22 Actual $000	2021/22 Budget $000	2021/22 Supp. Estimates $000
120	Expenses	870	120	870

Emergency Management Leadership and Support  

This appropriation is intended to support leadership of the all-hazards, all-risks emergency management system so that it reduces risk and is ready and able to provide an effective and integrated response to, and recovery from, emergencies.

What we achieved

Performance measure	Target 2021/22	Result 2020/21	Result 2021/22	Achieved
The National Emergency Management Agency maintains a positive reputation with the public	Achieved	Achieved	Achieved	✔
Overall preparedness - New Zealanders are actively preparing for emergencies and know how to protect themselves against life safety risks posed by our most dangerous natural hazards	66%	67%	60%	✗

How much it cost

2020/21 Actual $000		2021/22 Actual $000	2021/22 Budget $000	2021/22 Supp. Estimates $000
43,103	Revenue Crown	42,992	32,086	42,993
853	Revenue Other	982	230	1,495
43,956	TOTAL REVENUE	43,974	32,316	44,488
34,994	Departmental Expenses	37,833	32,316	44,488
8,962	Net Surplus/(Deficit)	6,141	-	-
7,010	Non-departmental Expenses	8,584	3,566	21,205
4,831	Non-departmental Capital Expenditure	3,952	-	5,392

Departmental expenditure was higher than originally budgeted due to expenditure related to funding carried forward from 2020/21, and unbudgeted third-party funded activity for the Ministry of Foreign Affairs and Trade Partnership Programme. Budget for these items was included in baseline updates during the year. The underspend against the Supplementary Estimates was mainly due to lower expenditure for Tsunami Monitoring and Detection Network maintenance with maintenance scheduled for 2022/23 and other initiatives such as National Crisis Management Centre Resilience and Emergency Mobile Alerting where some support activities are to occur in 2022/23.

Non-departmental expenditure was higher than originally budgeted due to expenditure related to funding carried forward from 2020/21 for several emergency management initiatives and expenditure to support Buller District recovery from emergency events. Budget for these items was included in baseline updates during the year. The underspend against the Supplementary Estimates is mainly due to lower expenditure to support emergency readiness and response activities. These activities are expected to continue in 2022/23.

Capital expenditure was lower than budgeted due to the final cost of the deployment of the Tsunami Monitoring and Detection Network being lower than planned.

Category: Advice and Support for Emergency Risk Reduction, Readiness, Response and Recovery

This category is intended to provide advice to Ministers and the emergency management sector on the design, operation and performance of the emergency management system; building the capability and capacity of the emergency management sector (including communities) to plan for, respond to and recover from emergencies; and leading and supporting response to and recovery from emergencies.

What we achieved

Performance measure	Target 2021/22	Result 2020/21	Result 2021/22	Achieved
Community Awareness and Readiness
Percentage of New Zealanders who have taken action to prepare for an emergency in the last 12 months	50%	42%	33%	✗
Percentage of New Zealanders who know the correct action to take during an earthquake	67%	67%	59%	✗
Percentage of New Zealanders who know the correct action to take if they feel a long or strong earthquake near the coast	85%	91%	87%	✔
Emergency Sector Support and Management
Satisfaction is at least 6 out of 10 in relation to the two measures below (see Note 1):
If a Guideline, Technical Standard, or Code was required did it meet the CDEM sector users' needs (see Note 1)	6	8.0	8.4	✔
The National Emergency Management Agency supports capability development by facilitating learning and training activities for organisations with responsibilities under the Civil Defence Emergency Management Act 2002	6	7.4	7.1	✔
Percentage of the Tsunami Monitoring and Detection Network returning data	80%	70%	70%	✗
Management of Emergencies
An initial National Warning is issued within 20 minutes of the Duty Manager's decision to issue a National Warning	100%	50%	Not applicable - no National Warnings were issued in 2021/22	-
Number of National Crisis Management Centre amalgamated corrective action plans reviewed (see Note 2)	4	6	4	✔
Policy Advice
The responsible Minister is satisfied with the emergency management policy advice service (see Note 3)	4	4.95	4.8	✔
Average score for assessed policy papers (see Note 4)	4	3.3	3.35	✗
Quality of policy advice papers - 70% score 3 or higher, 30% score 4 or higher and no more than 10% score 2 or less (see Note 4)	Achieved	Not achieved	Not achieved	✗

Note 1 - Relevant publications are those found on the National Emergency Management Agency website https://www.civildefence.govt.nz/resources/publications/

Note 2 - The National Emergency Management Agency Business Committee reviews the amalgamated corrective actions plan at least 4 times during each financial year and ensures target dates are on track (or adjusts target dates when events outside the National Emergency Management Agency's control occur, such as natural disasters).

Note 3 - The Ministerial Policy Satisfaction Survey measures Ministers' satisfaction with the quality, timeliness and value for money of policy advice on a scale from 1 to 5, where 1 means never met expectations and 5 means always exceeded expectations.

Note 4 - A sample of NEMA's policy advice was assessed by a panel using the Policy Quality Framework. There are two targets for reporting on overall policy advice: an average score and a distribution score. Policy advice is scored on a scale of 1 to 5, where 1 means unacceptable and 5 means outstanding. Separate reviews were undertaken for DPMC and NEMA in 2021/22, however prior year results include an average across both agencies.

How much it cost

2020/21 Actual $000		2021/22 Actual $000	2021/22 Budget $000	2021/22 Supp. Estimates $000
43,103	Revenue Crown	42,992	32,086	42,993
853	Revenue Other	982	230	1,495
43,956	TOTAL REVENUE	43,974	32,316	44,488
34,994	Departmental Expenses	37,833	32,316	44,488
8,962	Net Surplus/(Deficit)	6,141	-	-

Category: Capital Expenditure to Support Emergency Risk Reduction, Readiness, Response and Recovery

This category is intended to achieve preservation of the functionality of a tsunami monitoring and detection network for New Zealand and the Pacific Realm countries (Niue, Tokelau and the Cook Islands).

What we achieved

Performance measure	Target 2021/22	Result 2020/21	Result 2021/22	Achieved
Percentage of DART Buoys deployed within agreed timeframes	100%	100%	100%	✔

How much it cost

2020/21 Actual $000		2021/22 Actual $000	2021/22 Budget $000	2021/22 Supp. Estimates $000
4,831	Expenses	3,952	-	5,392

Our financials | Tauāki pūtea#

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This section contains our financial statements for 2021/22 which report on the financial resources used by DPMC to deliver the goods and services purchased by our Ministers, as well as financial statements, notes and other explanatory information.

Statement of responsibility#

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I am responsible, as the Chief Executive of the Department of the Prime Minister and Cabinet (the Department), for:

• the preparation of the Department'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 Department 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 Department, whether or not that information is included in the Annual Report.

In my opinion:

• the annual report fairly reflects the operations, progress, and the organisational health and capability of the Department;
• the Financial Statements fairly reflect the financial position of the Department as at 30 June 2022 and its operations for the year ended on that date; and
• the Forecast Financial Statements fairly reflect the forecast financial position of the Department as at 30 June 2023 and its operations for the year ending on that date.

Brook Barrington
Chief Executive

Date: 30 September 2022

Independent auditor's report#

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To the readers of the Department of the Prime Minister and Cabinet's annual report for the year ended 30 June 2022

The Auditor-General is the auditor of the Department of the Prime Minister and Cabinet (the Department). The Auditor-General has appointed me, Stephen Lucy, using the staff and resources of Audit New Zealand, to carry out, on his behalf, the audit of:

• the financial statements of the Department on pages 70 to 84, that comprise the statement of financial position, statement of commitments, statement of contingent liabilities and contingent assets as at 30 June 2022, the statement of comprehensive revenue and expenses, 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 Department for the year ended 30 June 2022 on pages 8 to 20 and 51 to 62;
• the statements of expenses and capital expenditure of the Department for the year ended 30 June 2022 on pages 48 to 50; and
• the schedules of non-departmental activities which are managed by the Department on behalf of the Crown on pages 85 to 90 that comprise:
  • the schedules of assets; liabilities; commitments; and contingent liabilities and contingent assets as at 30 June 2022;
  • the schedules of expenses; and revenue for the year ended 30 June 2022; and
  • the notes to the schedules that include accounting policies and other explanatory information.

Opinion

In our opinion:

• the financial statements of the Department on pages 70 to 84:
  • present fairly, in all material respects:
    • its financial position as at 30 June 2022; and
    • its financial performance and cash flows for the year ended on that date; and
  • comply with generally accepted accounting practice in New Zealand in accordance with Public Benefit Entity Standards.
• the performance information of the Department on pages 8 to 20 and 51 to 62:
  • presents fairly, in all material respects, for the year ended 30 June 2022:
    • 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; and
  • complies with generally accepted accounting practice in New Zealand.
• the statements of expenses and capital expenditure of the Department on pages 48 to 50 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 Department on behalf of the Crown on pages 85 to 90 present fairly, in all material respects, in accordance with the Treasury Instructions:
  • the assets; liabilities; commitments; and contingent liabilities and assets as at 30 June 2022; and
  • expenses; and revenue for the year ended 30 June 2022.

Our audit was completed on 30 September 2022. This is the date at which our opinion is expressed.

The basis for our opinion is explained below. In addition, we outline the responsibilities of the Chief Executive and our responsibilities relating to the information to be audited, we comment on other information, and we explain our independence.

Basis for our opinion

We carried out our audit in accordance with the Auditor-General's Auditing Standards, which incorporate the Professional and Ethical Standards and the International Standards on Auditing (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board. Our responsibilities under those standards are further described in the Responsibilities of the auditor section of our report.

We have fulfilled our responsibilities in accordance with the Auditor-General's Auditing Standards.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of the Chief Executive for the information to be audited

The Chief Executive is responsible on behalf of the Department for preparing:

• financial statements that present fairly the Department's financial position, financial performance, and its cash flows, and that comply with generally accepted accounting practice in New Zealand;
• 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 Department, that are presented fairly, in accordance with the requirements of the Public Finance Act 1989; and
• schedules of non-departmental activities, in accordance with the Treasury Instructions, that present fairly those activities managed by the Department on behalf of the Crown.

The Chief Executive is responsible for such internal control as is determined is necessary to enable the preparation of the information to be audited that is free from material misstatement, whether due to fraud or error.

In preparing the information to be audited, the Chief Executive is responsible on behalf of the Department for assessing the Department’s ability to continue as a going concern. The Chief Executive is also responsible for disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless there is an intention to merge or to terminate the activities of the Department, or there is no realistic alternative but to do so.

The Chief Executive’s responsibilities arise from the Public Finance Act 1989.

Responsibilities of the auditor for the information to be audited

Our objectives are to obtain reasonable assurance about whether the information we audited, as a whole, is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit carried out in accordance with the Auditor-General's Auditing Standards will always detect a material misstatement when it exists. Misstatements are differences or omissions of amounts or disclosures, and can arise from fraud or error. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of readers, taken on the basis of the information we audited.

For the budget information reported in the information we audited, our procedures were limited to checking that the information agreed to the Department's Strategic Intentions 2020/21 to 2023/24, Estimates and Supplementary Estimates of Appropriations 2021/22 and the 2021/22 forecast financial figures included in the Department's 2020/21 Annual Report.

We did not evaluate the security and controls over the electronic publication of the information we audited.

As part of an audit in accordance with the Auditor-General's Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. Also:

• We identify and assess the risks of material misstatement of the information we audited, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• We obtain an understanding of internal control relevant to the audit 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 Department's internal control.
• We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Chief Executive.
• We evaluate the appropriateness of the reported performance information within the Department's framework for reporting its performance.
• We conclude on the appropriateness of the use of the going concern basis of accounting by the Chief Executive and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Department’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the information we audited or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Department to cease to continue as a going concern.
• We evaluate the overall presentation, structure and content of the information we audited, including the disclosures, and whether the information we auditedrepresents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Chief Executive regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Our responsibilities arise from the Public Audit Act 2001.

Other information

The Chief Executive is responsible for the other information. The other information comprises the information included on pages 1 to 7, 21 to 46, 64 and 92 to 95, but does not include the information we audited, and our auditor's report thereon.

Our opinion on the information we audited does not cover the other information and we do not express any form of audit opinion or assurance conclusion thereon.

Our responsibility is to read the other information. In doing so, we consider whether the other information is materially inconsistent with the information we audited or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on our work, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

The reports by the Prime Minister and the Minister for Emergency Management on relevant non-departmental appropriations that are appended to the Department's annual report are not part of the Department's annual report. The Public Finance Act 1989 does not require the information in the Ministers' reports to be audited and we have performed no procedures over the information in the Ministers' reports.

Independence

We are independent of the Department in accordance with the independence requirements of the Auditor-General's Auditing Standards, which incorporate the independence requirements of Professional and Ethical Standard 1: International Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board.

Other than in our capacity as auditor, we have no relationship with, or interests in, the Department.

S B Lucy
Audit New Zealand
On behalf of the Auditor-General
Wellington, New Zealand

Departmental financial statements#

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Statement of Comprehensive Revenue and Expenses

for the year ended 30 June 2022

2020/21 Actual $000		Note	2021/22 Actual $000	2021/22 Unaudited Budget $000	2022/23 Unaudited Forecast $000
	REVENUE
122,841	Revenue Crown		187,648	138,729	134,369
11,336	Other Revenue	2	41,416	260	310
134,177	TOTAL REVENUE		229,064	138,989	134,679
	EXPENSES
46,368	Personnel Costs	3	72,774	64,417	69,586
564	Depreciation and Amortisation Expense	6	481	965	801
491	Capital Charge	4	555	524	524
56,825	Other Operating Expenses	5	122,028	73,083	63,768
104,248	TOTAL EXPENDITURE		195,838	138,989	134,679
29,929	NET SURPLUS/(DEFICIT)		33,226	-	-
-	Other Comprehensive Revenue and Expenses		-	-	-
29,929	TOTAL COMPREHENSIVE REVENUE AND EXPENSES		33,226	-	-

Explanations of major variances against the original budget are provided in Note 12.

The accompanying notes and policies form part of these Financial Statements.

Statement of Changes in Equity

for the year ended 30 June 2022

2020/21 Actual $000		2021/22 Actual $000	2021/22 Unaudited Budget $000	2022/23 Unaudited Forecast $000
9,826	Balance at 1 July	11,092	11,092	11,640
	COMPREHENSIVE REVENUE/(EXPENSE)
29,929	Surplus for the Year	33,226	-	-
1,266	Capital Injection	1,151	1,151	208
-	Capital Withdrawal	(603)	-	-
(29,929)	Return of Operating Surplus to the Crown	(33,226)	-	-
11,092	BALANCE AT 30 JUNE	11,640	12,243	11,848

Explanations of major variances against the original budget are provided in Note 12.

The accompanying notes and policies form part of these Financial Statements.

Statement of Financial Position

as at 30 June 2022

2020/21 Actual $000		Note	2021/22 Actual $000	2021/22 Unaudited Budget $000	2022/23 Unaudited Forecast $000
	ASSETS
	CURRENT ASSETS
13,793	Cash and Cash Equivalents		18,102	5,270	14,858
-	Other Financial Asset		387	-	-
35,999	Debtor Crown		35,556	12,214	12,214
10,616	Debtors and Other Receivables		10,645	500	500
19	Prepayments		48	-	-
311	Inventory		289	199	199
60,738	TOTAL CURRENT ASSETS		65,027	18,183	27,771
	NON-CURRENT ASSETS
216	Intangible Assets	6	48	-	-
1,275	Property, Plant and Equipment	6	1,401	3,007	1,515
1,491	TOTAL NON-CURRENT ASSETS		1,449	3,007	1,515
62,229	TOTAL ASSETS		66,476	21,190	29,286
	LIABILITIES
	CURRENT LIABILITIES
17,232	Creditors and Other Payables	7	16,699	6,547	14,506
29,929	Provision for Repayment of Surplus		33,226	-	-
21	Provisions	8	-	-	-
3,501	Employee Entitlements	9	4,568	2,100	2,632
50,683	TOTAL CURRENT LIABILITIES		54,493	8,647	17,138
	NON-CURRENT LIABILITIES
454	Employee Entitlements	9	343	300	300
454	TOTAL NON-CURRENT LIABILITIES		343	300	300
51,137	TOTAL LIABILITIES		54,836	8,947	17,438
11,092	NET ASSETS		11,640	12,243	11,848
	EQUITY
11,092	Taxpayers' Funds		11,640	12,243	11,848
11,092	TOTAL EQUITY		11,640	12,243	11,848

Explanations of major variances against the original budget are provided in Note 12.

The accompanying notes and policies form part of these Financial Statements.

Statement of Cash Flows

for the year ended 30 June 2022

The Statement of Cash Flows summarises the cash movements in and out of the Department during the financial year.

2020/21 Actual $000		2021/22 Actual $000	2021/22 Unaudited Budget $000	2022/23 Unaudited Forecast $000
	CASH FLOWS FROM OPERATING ACTIVITIES
101,476	Receipts from the Crown	188,091	138,729	134,369
1,450	Receipts from Other Revenue	42,260	260	310
(64,908)	Payments to Suppliers	(118,336)	(73,308)	(63,986)
(45,809)	Payments to Employees	(72,333)	(64,192)	(69,368)
(491)	Payments for Capital Charge	(555)	(524)	(524)
(1,602)	Goods and Services Tax (net)	(4,998)	-	-
(9,884)	NET CASH FLOWS FROM OPERATING ACTIVITIES	34,129	965	801
	CASH FLOWS FROM INVESTING ACTIVITIES
17	Receipts from sale of property, plant, and equipment	295	-	-
(456)	Purchase of Property, Plant and Equipment	(734)	(1,251)	(308)
(185)	Purchase of Intangible Assets	-	-	-
(624)	NET CASH FLOWS FROM INVESTING ACTIVITIES	(439)	(1,251)	(308)
	CASH FLOWS FROM FINANCING ACTIVITIES
(10,630)	Repayment of Net Surplus to the Crown	(29,929)	-	-
1,266	Capital Contribution	1,151	1,151	208
-	Capital Withdrawal	(603)	-	-
(9,364)	NET CASH FROM FINANCING ACTIVITIES	(29,381)	1,151	208
(19,872)	Net Increase/(Decrease) in Cash and Cash Equivalent	4,309	865	701
33,665	Cash and Bank Balances at the Beginning of the Year	13,793	4,405	14,157
13,793	CASH AND BANK BALANCES AT YEAR END	18,102	5,270	14,858

Explanations of major variances against the original budget are provided in Note 12.

The accompanying notes and policies form part of these Financial Statements.

Statement of Commitments

as at 30 June 2022

Capital commitment

At 30 June 2022, the Department has no capital commitments (2021: nil).

Non-cancellable operating lease commitments

The Department leases premises in Wellington, Auckland and Christchurch. These non-cancellable operating leases have varying terms, escalation clauses and renewal rights. In Wellington, the Department leases several floors in the TSB building. In Auckland, office space is leased from another government agency for Auckland-based NEMA staff. In Christchurch, office space is leased within the Christchurch Justice and Emergency Services Precinct. The amounts disclosed below as future commitments are based on the current rental rates.

There are no restrictions placed on the Department by any of the operating lease arrangements.

2020/21 Actual $000		2021/22 Actual $000
	OPERATING COMMITMENTS
	NON-CANCELLABLE OPERATING LEASE COMMITMENTS
2,101	No later than one year	1,643
2,559	Later than one year and not later than 5 years	649
511	Later than five years	425
5,171	TOTAL NON-CANCELLABLE OPERATING LEASE COMMITMENTS	2,717

The accompanying notes and policies form part of these Financial Statements.

Statement of Contingent Liabilities and Contingent Assets

as at 30 June 2022

Contingent liabilities

At 30 June 2022 there were three legal matters which relate to pending decisions by the Court, and one employment matter, which could give rise to liabilities to DPMC. These amounts are unquantifiable at 30 June 2022, and no provision has been made (2021: 4[15]).

Contingent assets

At 30 June 2022, the Department has no contingent assets (2021: Nil).

The accompanying notes and policies form part of these Financial Statements.

Notes to the departmental financial statements#

Print this section

for the year ended 30 June 2022

1.  Statement of Accounting Policies

Reporting entity

The Department of the Prime Minister and Cabinet (‛the Department') is a New Zealand government department as defined by section 5 of the Public Service Act 2020 and is domiciled and operates in New Zealand. The relevant legislation governing the Department's operations includes the Public Finance Act 1989 (PFA) and the Public Service Act 2020. The Department's ultimate parent is the New Zealand Crown.

In addition, the Department has reported on Crown activities and trust monies that it administers in the non-departmental statements and schedules.

The Department's primary objective is to provide services to the New Zealand public and does not operate to make a financial return. It operates as the advisor, leader and steward of New Zealand's system of executive government.

The Department has designated itself as a public benefit entity (PBE) for the purposes of complying with generally accepted accounting practice (GAAP).

The financial statements of the Department are for the year ended 30 June 2022 and were approved for issue by the Chief Executive on 30 September 2022.

Basis of preparation

The financial statements have been prepared on a going concern basis, and the accounting policies have been applied consistently throughout the year.

Statement of compliance

The Departmental Financial Statements, Non-departmental Financial Schedules and the Forecast Financial Statements of the Department have been prepared in accordance with the requirements of the Public Finance Act 1989, which includes the requirement to comply with New Zealand Generally Accepted Accounting Practices (NZ GAAP), Treasury Instructions and Treasury Circulars and have been prepared in accordance with Tier 1 NZ PBE accounting standards.

Measurement and recognition rules applied in the preparation of the Non-departmental Supplementary Financial Schedules are consistent with NZ GAAP and Crown accounting policies and are detailed in the Financial Statements of the Government.

Measurement base

The Departmental Financial Statements and Non-departmental Schedules have been prepared on an historical-cost basis adjusted for the revaluation of Government House land and buildings, antiques, and artworks.

The accrual basis of accounting has been used.

Functional and presentation currency

The Departmental Financial Statements and Non-departmental Schedules are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000). The functional currency of the Department is New Zealand dollars.

Changes in accounting policies

There have been no changes in the Department's accounting policies since the date of the last audited financial statements.

Standards issued and not yet effective and not early adopted

Standards and amendments, issued but not yet effective that have not been early adopted, and which are relevant to the Department are:

PBE FRS 48 Service Performance Reporting

PBE FRS 48 replaces the service performance reporting requirements of PBE IPSAS 1 Presentation of Financial Statements and is effective for the year ending 30 June 2023, with earlier adoption permitted. The Department has not yet determined how application of PBE FRS 48 will affect its statement of service performance. The Department does not intend to early adopt the standard.

PBE IPSAS 41 Financial Instruments

PBE IPSAS 41 replaces PBE IFRS 9 Financial Instruments and is effective for the year ending 30 June 2023, with earlier adoption permitted. The Department has assessed that there will be little change as a result of adopting the new standard as the requirements are similar to those contained in PBE IFRS 9.

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. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of the Non-departmental assets and liabilities within the next reporting period are in respect of estimating the fair value of land and buildings (see Note 14 Property, Plant and Equipment) and the Non-departmental provisions for emergencies (see Note 15 Provisions). For Departmental assets and liabilities, this is the measurement of long service and retirement leave (see Note 9).

Summary of significant accounting policies

Significant accounting policies are included in the notes to which they relate. Significant accounting policies that do not relate to a specific note are outlined below.

Revenue Crown - departmental

Revenue from the Crown is measured based on the Department'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 Department 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.

Donated assets - Non-departmental

Where a physical asset is acquired for nil or nominal consideration, the fair value of the asset received is recognised as revenue in the Schedule of Non-departmental Revenue and Receipts.

Financial instruments

Financial assets

Cash and cash equivalents include cash on hand, deposits held at call with banks, and other short-term highly liquid investments with original maturities of three months or less. The Department is permitted to expend its cash and cash equivalents only within the scope and limits of its appropriations.

Short-term receivables are recorded at the amount due, less an allowance for credit losses (if any). When relevant, the Department applies the simplified expected credit loss model of recognising lifetime expected credit losses for receivables.

In measuring expected credit losses, short-term receivables are assessed on a collective basis as they possess shared credit risk characteristics.

Short-term receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery includes the debtor being in liquidation or the receivable being more than one year overdue.

Goods and services tax

Items in the financial statements are stated exclusive of goods and services tax (GST), except for receivables and payables, which are stated on a GST-inclusive basis. Where GST is not recoverable as input tax, it is recognised as part of the related asset or expense.

The net amount of GST recoverable from, or payable to, the Inland Revenue (IR) is included as part of receivables or payables in the statement of financial position.

The net GST paid to or received from the IR, 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.

Income tax

The Department is a public authority and consequently is exempt from income tax. Accordingly, no provision has been made for income tax.

Financial liabilities

All financial liabilities are designated at nominal value, unless the non-current amount is significant enough to warrant designation at amortised value using the effective interest rate method.

Commitments

Future expenses and liabilities to be incurred on non-cancellable contracts at balance date.

Budget and forecast figures

The 2022 budget figures are consistent with the Department's best estimate financial forecast information submitted to the Treasury for the 2021 Budget Economic and Fiscal Update (BEFU) for the year ending 30 June 2022.

The 2023 forecast figures are for the year ending 30 June 2023, which are consistent with the best estimate financial forecast information submitted to the Treasury for the 2022 BEFU for the year ending 30 June 2023.

The forecast financial statements have been prepared as required by the PFA 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 2023 forecast figures have been prepared in accordance with and comply with PBE FRS 42.

Prospective Financial Statements

The forecast financial statements were approved for issue by the Chief Executive on 6 April 2022.

The Chief Executive is responsible for the forecast financial statements, including the appropriateness of the assumptions underlying them and all other required disclosures.

Although the Department regularly updates its forecasts, updated forecast financial statements for the year ending 30 June 2023 will not be published.

Significant assumptions used in preparing the forecast financial information

The forecast figures contained in these financial statements reflect the Department's purpose and activities and are based on a number of assumptions on what might occur during the 2022/23 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 6 April 2022 were as follows:

• The activities and output expectations will remain substantially the same as the previous year focusing on the Government's priorities.
• Personnel costs were based on current wages and salary costs, adjusted for anticipated remuneration changes.
• Operating costs were based on historical experience and other factors that are believed to be reasonable in the circumstances and are the best estimate of future costs that will be incurred.

The actual financial results achieved for 30 June 2023 are likely to vary from the forecast information presented, and the variations might be material. Additional factors that could lead to material differences between the Forecast Financial Statements and the 2022/23 Actual Financial Statements include changes to the baseline budget through new initiatives, transfer of funding across financial years or technical adjustments.

Comparatives

When presentation or classification of items in the Departmental Financial Statements is amended or accounting policies are changed voluntarily, comparative figures are restated to ensure consistency with the current period unless it is impracticable to do so.

Statement of cost accounting policies for Department Financial Statements

There have been no changes in cost accounting policies since the date of the last audited Financial Statements. The Department has determined the cost of outputs using the following cost allocation system:

• Direct costs are expenses incurred from activities in producing outputs. These costs are charged directly to the related appropriations.
• Indirect costs are expenses incurred by Corporate Services and by the Strategy, Governance and Engagement Group. Indirect costs are allocated to appropriations based on full-time equivalent personnel numbers. Indirect costs include those costs incurred by the Central Agencies Shared Services function within the Treasury and then recovered from DPMC.

2. Other Revenue

2020/21 Actual $000		2021/22 Actual $000
10,656	Revenue Department - Other Government Agencies[16]	40,994
663	Third Party - Other Revenue	422
17	Net gain on disposal of property, plant, and equipment	-
11,336	TOTAL OTHER REVENUE AND GAINS	41,416

3. Personnel Costs

Salaries and wages

Salaries and wages are recognised as an expense as employees provide services.

Superannuation schemes

Defined contribution schemes

Employee contributions to the State Sector Retirement Savings Scheme, KiwiSaver, and the Government Superannuation Fund are accounted for as defined contribution superannuation schemes and are expensed in the surplus or deficit as incurred.

Defined benefit scheme

The Department makes contributions to the Defined Benefit Plan (DBP) Contributors Scheme (the scheme), which is managed by the Board of Trustees of the National Provident Fund. The scheme is a multi-employer defined benefit scheme.

Insufficient information is available to use defined benefit accounting, as it is not possible to determine from the terms of the scheme the extent to which the surplus or deficit in the plan will affect future contributions by individual employers, as there is no prescribed basis for allocation. The scheme is therefore accounted for as a defined contribution scheme.

2020/21 Actual $000		2021/22 Actual $000
43,106	Salaries and Wages	67,898
1,276	Employer Contributions to Defined-Contribution Plans	1,732
559	Increase/(Decrease) in Employee Entitlements	956
1,427	Other[17]	2,188
46,368	TOTAL PERSONNEL COSTS	72,774

4. Capital Charge

DPMC pays a capital charge to the Crown based on its equity as at 30 June and 31 December each year. The capital charge rate for the year ended 30 June 2022 was 5% (2021: 5%).

5. Other Operating Expenses

2020/21 Actual $000		2021/22 Actual $000	2021/22 Unaudited Budget $000	2021/22 Unaudited Forecast $000
26,101	COVID-19 Publicity Costs	69,179[18]	14,000	12,120
11,441	Consultancy	21,116	18,649	4,549
8,619	Shared Services	11,287	10,708	11,287
3,175	Other Operating Expenses	8,359	18,241	23,178
3,926	Premises Rental	4,264	4,778	5,784
756	Promotion and Publicity Costs	2,149	711	706
437	IT-related Costs	2,024	1,299	1,490
696	Travel Costs	1,252	2,461	2,506
67	Photocopying and Printing Costs	790	724	724
675	Building and Ground Maintenance Costs	671	657	650
359	Cell Phone and Telephone	382	369	284
373	Facilities Costs	298	260	264
93	Inventories Consumed	135	115	115
107	Audit Fees for Audit of Financial Statements	122[19]	111	111
56,825	TOTAL OTHER OPERATING COSTS	122,028	73,083	63,768

6. Property, Plant, Equipment and Intangibles

Accounting policy

Property, plant and equipment

Property, plant and equipment is initially recognised at cost, plus incidental costs directly attributable to acquisition if it is probable that future economic benefits or service potential associated with the item will flow to the Crown. Where an asset is acquired at no or a nominal cost, it is recognised at fair value at the date of acquisition.

Depreciation is provided on a straight-line basis to allocate cost or revalued amounts, net of any estimated residual value, over the estimated useful life. The useful lives of major classes of assets have been estimated as follows:

Type of Asset	Estimated Life (years)
Fixtures	10 years
Furniture	5 years
Plant and Equipment	3 to 5 years
Motor Vehicles	4 years

De-recognition

An item of property, plant and equipment is de-recognised when it is disposed of, or when no future economic benefits are expected from its use. Any gain or loss on de-recognition is included in the surplus or deficit in the year the asset is de-recognised.

Intangible assets

Software is capitalised on the basis of the costs incurred to acquire and bring to use the specific software. Software as a Service and associated costs are expensed unless control of the code transfers to DPMC.

Direct costs include software acquisition and customisation costs by consultants or staff. Staff training costs are recognised as an expense when incurred. Intangible assets with finite lives are subsequently recorded at cost, less any amortisation and impairment losses. 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 an asset is available for use and ceases at the date that an asset is de-recognised.

The amortisation charge for each period is recognised in the Statement of Comprehensive Revenue and Expenses. The useful life and associated amortisation rate of computer software is as follows:

Type of Asset	Estimated Life (years)
Customised Software	5 years

Impairment

At each reporting date, the carrying amounts of all tangible and intangible assets are assessed to determine whether there is any indication they have suffered an impairment loss. If such indications exist for an asset, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

An impairment loss is recognised if the carrying amount exceeds its recoverable amount. Impairment losses directly reduce the carrying amount of the asset and are recognised in the surplus or deficit.

The estimated recoverable amount of an asset is the greater of its fair value less costs to sell and its value in use. Value in use is determined as the depreciated replacement cost of the asset.

	Furniture and Fittings $000	Motor Vehicles $000	Work in Progress $000	Plant and Equipment $000	Total PPE $000	Intangible Assets $000
COST
Balance at 1 July 2020	954	37	125	1,903	3,019	4,654
Additions	79	-	-	319	398	185
Disposals	-	(9)	-	(2)	(11)	-
Other Movements	-	1	58	-	59	-
BALANCE AT 30 JUNE 2021	1,033	29	183	2,220	3,465	4,839
Additions	266	-	-	468	734	-
Disposals	-	-	-	(536)	(536)	-
Other Movements[20]	-	-	(127)	253	126	(126)
BALANCE AT 30 JUNE 2022	1,299	29	56	2,405	3,789	4,713
ACCUMULATED DEPRECIATION AND IMPAIRMENT LOSSES
Balance at 1 July 2020	620	8	-	1,141	1,769	4,489
Depreciation Expense	84	8	-	338	430	134
Disposals	-	(8)	-	(2)	(10)	-
Other Movements	-	-	-	1	1	-
BALANCE AT 30 JUNE 2021	704	8	-	1,478	2,190	4,623
Depreciation Expense	86	8	-	345	439	42
Disposals	-	-	-	(241)	(241)	-
BALANCE AT 30 JUNE 2022	790	16	-	1,582	2,388	4,665
CARRYING VALUE
At 1 July 2020	334	29	125	762	1,250	165
At 30 June 2021	329	21	183	742	1,275	216
At 30 June 2022	509	13	56	823	1,401	48

7. Creditors and Other Payables

2020/21 Actual $000		2021/22 Actual $000
7,484	Accrued Expenses	11,290
5,934	Payables	5,409
3,814	GST Payable to Inland Revenue	-
17,232	TOTAL CREDITORS AND OTHER PAYABLES	16,699

8. Provisions

Accounting policy

A provision is recognised for future expenditure of uncertain amount or timing when:

• there is a present obligation (either legal or constructive) as a result of a past event;
• it is probable that expenditure will be required to settle the obligation; and
• a reliable estimate can be made of the amount of the obligation.

Provisions are not recognised for future operating losses.

Provisions are measured at the present value of the expenditure expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time, value of money and the risks specific to the obligation.

2020/21 Actual $000		2021/22 Actual $000
	PROVISIONS
106	Opening Balance	21
(85)	Provision Used/Reversed During the Year	(21)
21	CLOSING BALANCE	-
21	CURRENT PROVISION	-
-	NON-CURRENT PROVISION	-

The provision as at 30 June 2021 related to an onerous lease on a property in Christchurch. That lease concluded during 2021/22 and the provision was no longer required.

9. Employee Entitlements

Presentation of employee entitlements

Sick leave, annual leave, retirement leave, and other employee entitlements 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.

2020/21 Actual $000		2021/22 Actual $000
	CURRENT EMPLOYEE ENTITLEMENTS
2,340	Annual Leave	3,094
824	Salary Accrual	1,135
97	Long Service Leave	134
97	Other Employee Benefits	99
105	Sick Leave	95
38	Retirement Leave	11
3,501	TOTAL CURRENT LIABILITIES	4,568
	NON-CURRENT EMPLOYEE ENTITLEMENTS
229	Long Service Leave	243
225	Retirement Leave	100
454	TOTAL NON-CURRENT LIABILITIES	343
3,955	TOTAL EMPLOYEE ENTITLEMENTS	4,911

The measurement of the long service leave, and retirement leave obligations depends on a number of factors. Two key factors are the discount rate and the salary inflation factor. Any changes in these assumptions will change the carrying amount of the liability.

In determining the appropriate discount rate, the Department has adopted the central table of risk-free discount rates and Consumer Price Index assumptions provided by the Treasury to all departments.

10. Reconciliation of Net Surplus to Net Cash Flows from Operating Activities

2020/21 Actual $000		2021/22 Actual $000
29,929	NET SURPLUS (DEFICIT)	33,226
	ADD/(LESS) NON-CASH ITEMS
564	Depreciation and Amortisation	481
564	TOTAL NON-CASH ITEMS	481
	ADD/(LESS) WORKING CAPITAL MOVEMENT
(34,429)	(Increase)/Decrease in Receivables and Prepayments	1,569
(21)	(Increase)/Decrease in Inventories	22
(7,986)	Increase/(Decrease) in Creditors and Other Payables	3,281
1,602	Increase/(Decrease) in GST	(4,998)
(64)	Increase/(Decrease) in Provisions	(21)
588	Increase/(Decrease) in Employee Entitlements	1,067
(40,310)	TOTAL NET MOVEMENT IN WORKING CAPITAL ITEMS	920
(50)	Add/(Less) Movements in Non-current Liabilities	(111)
	ADD/(LESS) ITEMS CLASSIFIED AS INVESTING OR FINANCING ACTIVITIES
(17)	(Gain)/losses on disposal of property, plant, and equipment	-
-	Foreign Exchange (Gain)/losses on asset	(33)
-	Other Financial Asset	(354)
(9,884)	NET CASH FLOWS FROM OPERATING ACTIVITIES	34,129

11. Related-party Transactions

Accounting policy

The Department is a wholly-owned entity of the Crown. The Government significantly influences the roles of the Department as well as its source of revenue.

The Department undertakes transactions with other departments, Crown entities and State-Owned Enterprises (SOEs). These transactions are carried out at an arm's-length basis and are therefore not disclosed as related-party transactions except for rent for part of the Department located at the Beehive where no rental is being incurred.

Apart from those transactions described above, the Department has not entered into any related-party transactions.

In conducting its activities, the Department is required to pay various taxes and levies to the Crown and entities related to the Crown. The payment of these taxes and levies (other than income tax) is based on the standard terms and conditions that apply to all tax and levy payers. The Department is exempt from paying income tax.

Key management personnel - DPMC [DPMC Leadership Team, including the Chief Executive]

2020/21 Actual $000		2021/22 Actual $000
2,548	Remuneration[21]	2,742
7	Full-time Equivalent Staff	7

The above key management personnel compensation excludes the remuneration and other benefits for the Prime Minister and other Cabinet Ministers. The Ministers’ remuneration and other benefits are set by the Remuneration Authority under the Members of Parliament (Remuneration and Services) Act 2013 and are paid under Permanent Legislative Authority, and not paid by DPMC.

Related-party transactions involving key management personnel (or their close family members)

There were no related-party transactions involving key management personnel or their close family members. No provision has been required, nor any expense recognised, for impairment of receivables from related parties (2021: Nil).

12. Explanations of Major Variances Against Budget

Explanations for major variances between the Department's original 2021/22 budget figures and the 2021/22 year actuals are as follows:

Revenue

Revenue was higher than budgeted by $90.075 million due to decisions made since the 2021/22 Budget.

These mainly relate to:

• increased funding due to transfers from the prior year for COVID-19 All of Government Response, several Emergency Management initiatives, Canterbury Earthquake Recovery and Cyber Security, offset by transfers of funding to Vote Health ($23.1 million);
• new Crown funding approved for the COVID-19 All of Government Response ($23.3 million);
• increased cost recoveries from Vote Health for expenditure on COVID-19 vaccination public information costs ($38.7 million); and
• increased cost recoveries and contributions from other departments including contributions to the Policy Project, several emergency management initiatives and for office accommodation ($5 million).

Expenditure

Expenditure was higher than budgeted by $56.849 million due to decisions made since the 2021/22 Budget, which were partially offset by minor underspends in existing activities. The higher expenditure mainly relates to:

• underspends carried forward from 2020/21 for supporting the tsunami monitoring and detection network ($3.7 million), emergency mobile alerting ($1.8 million);
• COVID-19 vaccination public information costs incurred by DPMC but recorded as a charge against an appropriation in Vote Health ($30.1 million); and
• other COVID-19 All of Government Response activities for which new funding was approved after the 2021/22 Budget ($25.6 million).

Offsetting the higher expenditure, Health and Disability Reform expenditure was lower than Budget due to the earlier than anticipated transition of functions to the Ministry of Health and the two new health agencies (interim Health New Zealand and interim Māori Health Authority) ($4.4 million).

Balance sheet

Total assets exceeded the 2021/22 Budget by $45.286 million due to larger cash and debtor crown balances than expected as operating expenditure was lower than anticipated in the 2021/22 Supplementary Estimates.

Mostly offsetting this, total liabilities exceeded 2021/22 budget by $45.889 million reflecting higher accounts payable than expected ($10.152 million) and provision for repayment of surplus ($33.226 million).

Cash flow

Receipts from Revenue Crown exceeded budget by $49.362 million due to additional funding received from the Government for activity transferred from 2020/21 and initiatives approved during 2021/22. This was partly offset by cash outflows to suppliers and employees exceeding budget by $53.169 million (also due to expenditure in respect of the transferred activities and initiatives). The starting cash balance for the 2021/22 year was more favourable than was assumed in the budget by $9.388 million.

13. Events After the Balance Date

There have been no events after the balance date in respect to the Departmental Financial Statements.

Non-departmental financial schedules#

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Schedule of Non-departmental Expenses

for the year ended 30 June 2022

The Schedule of Expenses summarises expenses that the Department administers on behalf of the Crown.

2020/21 Actual $000		2021/22 Actual $000	2021/22 Unaudited Budget $000
8,122	Grants and Contributions	14,751	7,209
-	Increase to Provisions for emergency events	2,628	-
2,217	Depreciation	2,903	3,489
2,782	Other Operating Costs	2,732	3,848
5,191	Goods and Services Tax	4,624	2,238
254	Foreign Exchange Loss on Asset	-	-
18,566	TOTAL NON-DEPARTMENTAL EXPENSES	27,638	16,784

Schedule of Non-departmental Revenue and Receipts

for the year ended 30 June 2022

2020/21 Actual $000		2021/22 Actual $000	2021/22 Unaudited Budget $000
3,941	Other Revenue	5,216	3,069
694	Donated assets	-	-
-	Gains on sale of non-financial asset	46	-
4,635	TOTAL NON-DEPARTMENTAL REVENUE AND RECEIPTS	5,262	3,069

Schedule of Non-departmental Assets and Liabilities

as at 30 June 2022

2020/21 Actual $000		Note	2021/22 Actual $000	2021/22 Unaudited Budget $000
	ASSETS
	CURRENT ASSETS
38,019	Cash in Bank		24,337	11,803
430	Debtors and Other Receivables		155	-
2,202	Other Financial Assets		-	-
40,651	TOTAL CURRENT ASSETS		24,492	11,803
	NON-CURRENT ASSETS
187,757	Land, Property, Plant and Equipment	14	189,270	139,078
187,757	TOTAL NON-CURRENT ASSETS		189,270	139,078
228,408	TOTAL NON-DEPARTMENTAL ASSETS		213,762	150,881
	LIABILITIES
	CURRENT LIABILITIES
6,724	Creditors and Other Payables		1,788	3,432
32	Provision - Kaikōura District Council Three Waters		-	-
16,570	Provision - Emergency Expenses	15	19,246	500
23,326	TOTAL CURRENT LIABILITIES		21,034	3,932
	REVALUATION RESERVES
105,809	Property Revaluation Reserves		105,809	55,952
105,809	TOTAL REVALUATION RESERVES		105,809	55,952

Schedule of Non-departmental Commitments

as at 30 June 2022

As at 30 June 2022, there are no operating commitments in Vote Prime Minister and Cabinet (2021: Nil).

As at 30 June 2022, there are no capital commitments in Vote Prime Minister and Cabinet (2021: $2.202 million).

Schedule of Non-departmental Contingent Liabilities and Contingent Assets

as at 30 June 2022

Vote Prime Minister and Cabinet

Vote Prime Minister and Cabinet, on behalf of the Crown, has the following contingent liabilities and assets as at 30 June 2022.

Contingent liabilities - quantifiable

As at 30 June 2022, there are no quantifiable contingent liabilities (2021: Nil).

Contingent assets - quantifiable

As at 30 June 2022, there are no quantifiable contingent assets (2021: Nil).

Contingent liabilities - unquantifiable

New Zealand Local Authorities

Section 39 of the Civil Defence Emergency Management Act 2002 provides for a national civil defence emergency management plan (the National CDEM Plan). The National CDEM Plan sets out the principles of government financial support to local authorities, and its accompanying Guide sets out the criteria and arrangements for this support as set by Government policy for costs incurred as a result of a local or national emergency.

As at 30 June 2022, there were 12 events (2021: 7) from which we expect to receive claims for reimbursement from local authorities for welfare, response and recovery costs, being:

When	Event
June 2015	Whanganui Flooding
November 2016	A severe magnitude 7.8 earthquake in the Kaikōura region
April 2017	Ex-tropical Cyclones Debbie and Cook in the Bay of Plenty region
February 2020	Southland flooding
May/June 2021	Ashburton/Canterbury flooding
July 2021	West Coast flooding (Buller, Marlborough)
July 2021	West Auckland flooding
November 2021	Tairawhiti/Gisborne Flooding
February 2022	West Coast flooding (Buller)
February/March 2022	Tairawhiti/Gisborne weather event
March 2022	Wairoa flooding
March 2022	Hawkes Bay flooding

In relation to the above events, a provision of $19.246 million has been made for costs that have been ascertained (see Note 15) (2021: $16.570 million).

Contingent assets - unquantifiable

As at 30 June 2022, there are no unquantifiable contingent assets (2021: Nil).

Statement of Trust Monies

for the year ended 30 June 2022

For the year ended 30 June 2022, DPMC did not operate any trust account under section 66 of the Public Finance Act 1989.

Notes to the non-departmental financial schedules#

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Explanatory notes provide details of significant Vote Prime Minister and Cabinet Non-departmental expenditure, revenue, assets and liabilities. All Non-departmental balances are included in the Financial Statements of the Government of New Zealand.

14. Property, Plant and Equipment

	Land $000	Buildings $000	Antiques and Artworks $000	Plant and Equipment $000	Work in Progress $000	Other Assets $000	Total $000
COST
Balance at 1 July 2020	61,700	56,167	3,279	8,673	4,853	2,162	136,834
Additions	-	745	694	6,147	-	2	7,588
Disposals	-	-	-	-	-	-	-
Other movements	-	-	-	-	(1,384)	-	(1,384)
Revaluation	46,378	1,681	335	-	-	-	48,394
BALANCE AT 30 JUNE 2021	108,078	58,593	4,308	14,820	3,469	2,164	191,432
Additions	-	11	75	3,739	-	202	4,027
Disposals	-	-	-	-	-	(48)	(48)
Other Movements[22]	-	389	16	3,080	(3,096)	-	389
Revaluation	-	-	-	-	-	-	-
BALANCE AT 30 JUNE 2022	108,078	58,993	4,399	21,639	373	2,318	195,800
ACCUMULATED DEPRECIATION AND IMPAIRMENT LOSSES
Balance at 1 July 2020	-	728	-	703	-	1,496	2,927
Depreciation Expense	-	741	-	1,362	-	114	2,217
Disposals	-	-	-	-	-	-	-
Other Movements	-	(6)	-	-	-	-	(6)
Revaluation write back	-	(1,463)	-	-	-	-	(1,463)
BALANCE AT 30 JUNE 2021	-	-	-	2,065	-	1,610	3,675
Depreciation Expense	-	778	-	2,008	-	117	2,903
Disposals	-	-	-	-	-	(48)	(48)
BALANCE AT 30 JUNE 2022	-	778	-	4,073	-	1,679	6,530
CARRYING VALUE
At 1 July 2020	61,700	55,439	3,279	7,970	4,853	666	133,907
At 30 June 2021	108,078	58,593	4,308	12,755	3,469	554	187,757
At 30 June 2022	108,078	58,215	4,399	17,566	373	639	189,270

Depreciation

Depreciation is provided on a straight-line basis to allocate cost or revalued amounts, net of any estimated residual value, over the estimated useful life. Antiques and artworks are not depreciated. The useful lives of other major classes of assets have been estimated as follows:

Type of Asset	Estimated Life (years)
Buildings	50-120 years
Other Assets	5-10 years

Revaluations

Government House land and buildings in Auckland and Wellington were revalued to fair values as at 30 June 2021 by independent registered valuers, William Liew and David Cornford of Quotable Value Limited. The collection of antiques and artwork was revalued as at 30 June 2021 by an independent registered valuer, James Parkinson of Dunbar Sloane Limited.

Government House, Wellington, has been classified as being of national significance. This has been taken into account in the valuation of the property. Government House, Auckland, has a restrictive interest issued on the title of the property. For the purposes of the valuation, it is made subject to the property being free of detrimental interest/encumbrances with the property having freely transferrable titles.

Restrictions on land title include:

• Within the Wellington property (12.428 hectares), 11.3 hectares is zoned as Open Space B which provides for areas to be used for recreation and does not allow buildings and structures.
• Within the Auckland property, 2.25 hectares is marked as Natural Resources Significant Ecological Areas which restricts how this area is used.

9.8 hectares of the Wellington Open Space B zoned land has been valued as rural land with an uplift adjustment to reflect a 5% chance of a change of that land being rezoned as residential.

In the absence of clear market evidence, the depreciated replacement cost less an allowance for depreciation and, where necessary, obsolescence, is used to determine the fair value of the assets.

Revaluations are performed with sufficient regularity to ensure the carrying amount does not differ materially from their fair value. Land and buildings are revalued every two years. Antiques and Artworks are revalued every three years.

The carrying value of revalued assets are assessed annually to ensure that they do not differ materially from fair value. If there is a material difference, then the off-cycle asset class is revalued.

15. Provisions

	2021/22 Actual $000
	Emergency Expenses	Kaikōura District Council Three Waters
Balance at 1 July 2021	16,570	32
Additional Provision Recognised - New events	8,374	-
Payments Made During the Year/Provision Used for the Year	(5,121)	(32)
Changes to Provision - Previous events	(577)	-
Balance at 30 June 2022	19,246	-
Current Portion of the Provision	19,246	-

When significant emergency events occur, the Crown may provide financial support to local authorities for response and recovery costs relating to damaged essential infrastructure. The National Civil Defence Emergency Management Plan Order 2015 stipulates how the Crown may contribute to these costs. The Crown’s contribution to response and recovery costs, most notably for Three Waters infrastructure (wastewater, storm-water and potable water) is typically 60% of the total cost for valid and eligible work.

Emergency Expenses provision

The Emergency Expenses provision records the estimated cost of likely claims from local authorities for the Crown's reimbursement to local authorities for the cost of repairs following an emergency event and other eligible costs as set out in the National CDEM Plan.

The Emergency Expenses provision comprises:

• $6.472 million for Marlborough flooding in July 2021.
• $4.545 million for Ashburton/Canterbury flooding in May/June 2021.
• $2.616 million for the estimated cost of the Crown's contribution to the local authorities' cost of repairs arising from the November 2016 earthquakes that caused damage to the Three Waters networks across three districts (Hurunui, Kaikōura and Marlborough) and to river/stopbank infrastructure assets in the Marlborough District.
• $2.484 million for estimated costs associated with cyclones Debbie and Cook in the Bay of Plenty region in April 2017.
• $1.143 million for Southland Flooding in February 2020.
• $1.011 million for the cost of the Crown's contribution to support the Buller District Council in repairs associated with flooding events of July 2021 and February 2022.
• $0.450 million for West Coast flooding in February 2022.
• $0.399 million for Whanganui flooding in June 2015.
• $0.068 million for residual welfare costs associated with emergency events in 2018 and 2019.
• $0.042 million for estimated costs associated with flooding in Tairawhiti in November 2021, and February/March 2022.
• $0.015 million for the Auckland tornado in June 2021.

These estimates are based on information provided from the relevant local authorities.

To recognise the uncertainty associated with the estimates included in the Emergency Expenses provision, an unquantified contingent liability has also been reported in the Financial Statements.

16. Events after the Balance Date

There are no events after the balance date of 30 June 2022 (2021: Nil).

17. Impact of COVID-19

The Department plays a key role in coordinating the Government response. This included the establishment of the COVID-19 All-of-Government Response Group on 1 July 2020. However, there has been no significant impact on the Department’s operation or valuation of land and buildings.

Appendices | Ngā āpitihanga#

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This section includes:

• Cabinet Office statistics
• Cabinet and Cabinet committee meeting statistics
• New Zealand Royal Honours

Cabinet Office statistics#

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	2021/22 Actual	2020/21 Actual	2019/20 Actual
Meetings
Executive Council	45	33	44
Cabinet	50[23]	5223	47
Cabinet committees	176	115	175
Submissions
Summary cover sheets to Cabinet and Cabinet committee papers	1,556	1,083	1,562
Submissions lodged by Ministers' offices by the Cabinet Office deadline	73%	61%	65%
Papers published by the close of business, two days before the meeting	96%	96%	96%
Cabinet and Cabinet committee minutes
Cabinet and Cabinet committee minutes	1,964	1,520	2,105
Cabinet and Cabinet committee minutes requiring an amendment by the Cabinet Office[24]	10	2	10
Cabinet minutes published by the close of business, three days after the Cabinet meeting	96%	99%	98%
Other Services
Cabinet Office circulars	2	9	7
Briefing seminars to departments, Ministers' offices and other interested parties on the Cabinet decision-making process	20	20	22
Enquiries and requests from Ministers' offices and departments about Cabinet papers and related information	86	141	140

Cabinet and Cabinet committee meeting statistics#

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for the year ended 30 June 2022

	Number of Meetings	Number of Agenda Items	Average Number of Items per Meeting
Executive Council	45[25]	329	7
Cabinet	50	281	6
Cabinet committee meetings
Cabinet Appointments and Honours Committee	27	295	11
Cabinet Business Committee	15	93	6
Cabinet Economic Development Committee	27	274	10
Cabinet Environment, Energy and Climate Committee	12	59	5
Cabinet External Relations and Security Committee	10	46	5
Cabinet Government Administration and Expenditure Review Committee	12	60	5
Cabinet Legislation Committee	29	240	8
Cabinet Māori Crown Relations: Te Arawhiti Committee	6	17	3
Cabinet Priorities Committee	11	37	3
Cabinet Social Wellbeing Committee	27	236	9
Total Cabinet committee meetings	176	1,357	8
COVID-19 Ministerial Group[26]	8	28	4

New Zealand Royal Honours#

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for the year ended 30 June 2022

The Order of New Zealand
Additional Member	2
The New Zealand Order of Merit
Additional Dame Grand Companion	1
Dame Companion	6
Knight Companion	6
Companion	22
Officer	80
Member	133
Honorary Member	1
The Queen's Service Order
Companion	12
Additional Companion	2
Queen's Service Medal	102
Honorary Queen's Service Medal	3
New Zealand Bravery Awards
The New Zealand Cross	2
The New Zealand Bravery Decoration	4
The New Zealand Bravery Medal	4
The New Zealand Antarctic Medal
The New Zealand Antarctic Medal	1
The New Zealand Distinguished Service Decoration
The New Zealand Distinguished Service Decoration	2
TOTAL	383
Other honours and appointments
Grant of the title “The Right Honourable” for life	1
Grant of the title “The Honourable” for life	1
GRAND TOTAL	385

Areas of contribution for the New Year and Queen's Birthday 2022 Honours List recipients#

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Area of contribution	Female	Non-binary	Male	Total
Arts and Media	17		15	32
Business and the Economy	7		11	18
Community, Voluntary and Local Services	82	1	81	164
Education	28		14	42
Health	26		19	45
Science and Technology	1		10	11
Services to the State	9		12	21
Sport and Recreation	19		18	37
Total	189	1	180	370

Ethnicity of New Year and Queen's Birthday and Platinum Jubilee 2022 Honours Lists recipients

Ethnicity	Female	Non-binary	Male	Total	% of List
New Zealand European/European	106		113	219	59
Māori	36	1	22	59	16
Pacific Peoples	19		15	34	9
Asian	4		8	12	3.5
Other	4			4	1
Unspecified	20		22	42	11.5
Total	189	1	180	370

Report by the Prime Minister on a Non‑departmental Appropriation (B.14)#

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This report meets the requirement, set in the Vote Prime Minister and Cabinet Estimates of Appropriations and Supplementary Estimates of Appropriations for 2021/22, for information on the Centre of Excellence for Preventing and Countering Violent Extremism non-departmental appropriation to be reported by the Prime Minister.

This report is presented to the House of Representatives pursuant to Section 19B of the Public Finance Act 1989.

Although presented in the same document, this report does not form part of the Department of the Prime Minister and Cabinet’s Annual Report 2021/22.

Centre of Excellence for Preventing and Countering Violent Extremism#

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This appropriation is intended to achieve the establishment and operation of a national Centre of Excellence for Preventing and Countering Violent Extremism.

What we achieved

Performance measure	Target 2021/22	Result 2020/21	Result 2021/22	Achieved
Centre of Excellence for Preventing and Countering Violent Extremism established per Terms of Reference	Achieved	New measure	Achieved	✔

How much it cost

2020/21 Actual $000		2021/22 Actual $000	2021/22 Budget $000	2021/22 Supp. Estimates $000
300	Expenses	500	700	505

Report by the Minister for Emergency Management on Non-departmental Appropriations (B.14)#

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This report meets the requirement, set in the Vote Prime Minister and Cabinet Estimates of Appropriations and Supplementary Estimates of Appropriations for 2021/22, for information on non-departmental appropriations to be reported by the Minister for Emergency Management.

This report is presented to the House of Representatives pursuant to Section 19B of the Public Finance Act 1989.

Although presented in the same document, this report does not form part of the Department of the Prime Minister and Cabinet’s Annual Report 2021/22.

COVID-19: Civil Defence Emergency Management Group Welfare Costs#

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This appropriation is intended to provide support to Civil Defence Emergency Management Groups for qualifying COVID-19 welfare costs that are unable to be met by other sources of support.

What we achieved

Performance measure	Target 2021/22	Result 2020/21	Result 2021/22	Achieved
All payments to local authorities/CDEM groups to support individuals impacted by COVID-19 are made in accordance with the eligibility criteria	Achieved	Achieved	Achieved	✔

How much it cost

2020/21 Actual $000		2021/22 Actual $000	2021/22 Budget $000	2021/22 Supp. Estimates $000
-	Expenses	314	-	4,900

Local Authority Emergency Expenses PLA#

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This appropriation is intended to achieve reimbursement of local authorities for the purposes of reimbursing, or meeting, expenses incurred by them in connection with an emergency as authorised by section 115A of the Civil Defence Emergency Management Act 2002.

What we achieved

Performance measure	Target 2021/22	Result 2020/21	Result 2021/22	Achieved
Percentage of claims received are assessed in conjunction with approved criteria as set out in section 33 of the Guide to the National Civil Defence Emergency Management Plan 2015	100%	100%	100%	✔

How much it cost

2020/21 Actual $000		2021/22 Actual $000	2021/22 Budget $000	2021/22 Supp. Estimates $000
3,878	Expenses	8,808	5,000	5,000