Annual Report 2023

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

Print this section

With a calm mind and a respectful heart we will always get the best results

Kia ora koutou

At the Department of the Prime Minister and Cabinet (DPMC) we focus on supporting the government of the day to deliver on the most critical issues. We do this through three key enduring roles:

• supporting informed decision making - including providing the Prime Minister, Ministers and Cabinet with intelligence, advice and support, for example through the Policy Advisory Group (PAG);
• supporting well-conducted government - supporting the Governor-General, Prime Minister and Ministers to exercise their constitutional roles, for example through the Cabinet Office; and
• leading effective, strategically focussed National Security and Emergency Management Systems - including providing situational understanding and improving coordination across government, for example through our National Security Group.

We also host the National Emergency Management Agency (NEMA), a departmental agency established in December 2019, led by Chief Executive Dave Gawn.

This year has, once again, been demanding for DPMC and our people. The Department has supported informed decision making on its agenda in a range of ways. In addition to the work of the PAG, DPMC's Implementation Unit provided advice on a series of key government initiatives, including public housing and housing supply initiatives, health reforms and climate change.

The Child Wellbeing and Poverty Reduction Group led the review of the Child and Youth Wellbeing Strategy (Strategy) and we are now focused on implementing its findings.

During the year, our role in supporting two Government health priorities ended. Responsibility for the next stage of the health and disability system reforms transitioned from DPMC to the Ministry of Health and the two new health entities, Te Whatu Ora and Te Aka Whai Ora. Similarly, the COVID-19 Response Group functions transitioned to Te Whatu Ora and the Ministry of Health during the year, marking the next phase of the response to, and recovery from, COVID-19.

In our role of supporting well-conducted government, this year has been particularly significant. The Cabinet Office led the New Zealand response to the death of Her Majesty Queen Elizabeth II, including the State Memorial Service and the Proclamation of Accession of His Majesty King Charles III. We supported the Governor-General to carry out her constitutional, ceremonial and community roles as the representative of the Head of State. In early 2023 we supported the transition between Prime Ministers, Rt Hon Jacinda Ardern and Rt Hon Chris Hipkins.

In our role of providing leadership to New Zealand's National Security and Emergency Management Systems, this year has been marked by significant progress to build a more open, transparent national security system to protect New Zealanders. This work has been guided by the Report of the Royal Commission of Inquiry into the terrorist attack on Christchurch masjidain.

Together with other Security and Intelligence agencies, we presented the National Security Long-term Insights Briefing to Parliament this year. Through this briefing, which focuses on engaging an increasingly diverse Aotearoa New Zealand on national security, we shared information on some of our most pressing national security risks and challenges. As a country, we have choices about how we approach these. By increasing public conversations on national security, we can prepare and grow our resilience to meet these challenges together.

Resilience in the face of natural disasters was again put to the test in the last 12 months. We moved at pace coordinating the multi-agency response to the North Island extreme weather events in early 2023, including supporting NEMA during the immediate response and recovery. The Cyclone Recovery Taskforce and Cyclone Recovery Unit were rapidly established within DPMC to lead, coordinate, and monitor the severe weather recovery across government. Reporting to the Minister for Cyclone Recovery, Katrina Casey was appointed functional Chief Executive, Cyclone Recovery.

I returned to DPMC in February 2023 to lead the Department while Brook Barrington takes a leave of absence. I would like to acknowledge Brook's leadership before I arrived and his support while I have been in this role. Much has changed since I was last at DPMC, as Secretary to the Cabinet, in 2014. The Department is no stranger to responding to challenge and change, rapidly flexing to best support the government. What has remained constant are the skills, talent, and commitment of the people who work here. I am heartened by the resilience and spirit of service displayed by staff.

DPMC operates in a complex, varied and changing environment that requires leadership and agility. The Department of the Prime Minister and Cabinet is only effective because of the quality of people who make up our team, and their commitment to high quality advice and a true sense of public service. We should be proud of what we do, and I would like to thank our team for their tireless commitment to advancing an ambitious, resilient and well-governed Aotearoa New Zealand.

Rebecca Kitteridge CVO
Te Tumu Whakarae mō Te Tari o te Pirimia me te Komiti Matua
Secretary of the Department of the Prime Minister and Cabinet, and Chief Executive

Our story | Te kōrero#

Print this section

Our strategic intentions | He takunetanga rautaki#

Print this section

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

Print this section

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

Supporting informed decision making

We provide the Prime Minister, Cabinet and portfolio Ministers with intelligence, advice and support 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 on 15 March 2019, health, the response to COVID-19, Cyclone Recovery, the regeneration of greater Christchurch and child 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.

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 trusted running of executive government through the provision of secretariat services, constitutional advice and support, support for the legislation programme, and the administration of the New Zealand Royal Honours system. In 2022/23, this role included advice and support on the death of Her Majesty Queen Elizabeth II and the accession of His Majesty King Charles III.

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 Government Houses 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 Security and Intelligence Board and the Hazard Risk Board to carry out their governance and oversight role for Aotearoa New Zealand's national security risks, and leading the Government's response to the Royal Commission of Inquiry into the terrorist attack on Christchurch masjidain. It involves supporting the Officials' Committee on Domestic and External Security Coordination (ODESC) in a crisis.

The Christchurch Call Unit leads and coordinates 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, including successful transfer of those responsibilities to health agencies.

Our year at a glance | Te tau kua hipa#

Print this section

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

Print this section

Outcome 1: The Government is enabled to deliver its priorities

What we intended to achieve

Measuring our progress

The table below sets out the indicators we use to monitor our progress against this outcome. Our work in this area is focused on providing high-quality policy advice and assessments that inform decision-making and building the capability of the system to do this as well. Our indicators focus on the quality of our policy advice and assessments, the satisfaction of our Ministers with our advice and support, as well as the work of the Policy Project in building public sector policy capability. The way in which we measure these indicators is set out on page 46.

All the indicators are on track, other than satisfaction with advice and servicing. Of the 14 surveys that make up this indicator, two of the three with lower scores had Ministers new to their portfolios in early 2023. Responding to Ministers' needs and requirements over nine portfolio areas reflects the growing complexity of the Department's operations in 2022/23.

Indicator	Desired trend	Progress 2021/22	Progress 2022/23	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 2022/23

We helped drive delivery of the Government's priorities

The Implementation Unit within DPMC exists to support the Government to implement its key priorities. It does this by working closely with agencies to ensure priority projects are on track to deliver the intended benefits within the planned timeframes. The Unit also helps to identify what needs to be done to bring the project back on track and follows up to ensure these actions are taken.

The Unit runs stocktakes of progress, rapid assessments and lessons learned reviews of issues that may be of concern to Ministers and prepares system guidance on what works well and what could be different, drawing on its work with agencies. Through the Unit's work, Ministers are better informed on the status of priority programmes and on the status of agreed actions to address potential roadblocks to successful delivery. Some government priority initiatives the Unit looked into include:

• public housing and housing supply initiatives;
• mental health and addiction services and infrastructure;
• climate change;
• health reforms; and
• progress in establishing Te Pūkenga.

It was another busy year for our Policy Advisory Group (PAG), which continued to provide high-quality and timely policy advice directly to the Prime Minister on the range of issues that the Government faces on a daily basis, as well as briefings on papers coming for decision to Cabinet and its committees.

The Strategy Unit continued its work on a small number of strategic policy and analytical projects in response to Prime Ministerial direction. The Strategy Unit also supported the implementation of the Cyclone Recovery Unit.

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

Being the best place in the world for children and young people requires a focus on the areas that have the biggest impact on improving wellbeing and reducing poverty. Providing advice in relation to this, supporting decision making, and monitoring progress across government is the focus of our Child Wellbeing and Poverty Reduction Group.

Key achievements for the year include:

• completing the first statutory review of the Strategy as required by the Children's Act 2014 and implementing the 16 review recommendations;
• publishing best practice guidelines for engaging with children and young people, to support government agencies to empower the views and voices of children and young people;
• publishing the second Child and Youth Wellbeing Annual Report, which provided a comprehensive overview of the progress that has been made in implementing the Strategy's objectives, and the impact that these efforts have had on the lives of children and young people across Aotearoa New Zealand. This work supports people within government and wider to make decisions that improve outcomes for children and young people;
• publishing the fourth Child and Poverty Related Indicators Report which includes measures related to the broader causes and consequences of child poverty. This work shines a light on progress in this area and supports decision making on policies, investment, and activities to further improve outcomes for our children and young people; and
• providing advice on many of the policies and measures including government investments that have contributed to the downward trend of all of the child poverty measures since 2017/18.

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

The Christchurch Call, a joint venture of DPMC and the Ministry of Foreign Affairs and Trade, delivered a successful Christchurch Call Summit in September 2022.The Summit was co-chaired by Rt Hon Dame Jacinda Ardern and President Emmanuel Macron of France on the margins of leader level UN General Assembly meetings. It provided a useful opportunity for leaders to check in on progress against delivery on the Call commitments, and to set out priorities for shared work in the coming period.

The Christchurch Call was supported by the appointment of Rt Hon Dame Jacinda Ardern as the Prime Minister's Special Envoy for the Call in April 2023. Unit staff were engaged in organising and supporting a round of meetings with Call firms and others that the Special Envoy undertook in early June in the United States.

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. In the past year we have successfully increased the number of agencies supported, events held and the number of people taking part in these events.

Key achievements during 2022/23 include:

• refreshing the Policy Skills Framework to better reflect the skills needed by policy practitioners;
• supporting the response to recommendations of the Royal Commission of Inquiry into the terrorist attack on Christchurch masjidain through piloting the Policy Community Engagement Tool for use by response agencies;
• publishing the Policy Profession Board's response to the interim evaluation and commencing the work programme for its next phase;
• completing a moderation across 26 public service policy agencies using the policy quality framework to ensure consistency of agency policy assessments and scoring; and
• supporting agencies with workshops and guidance for preparing their first round of Long-term Insights Briefings.

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

Measuring our success

The table below sets out the indicators we use to monitor our progress against this outcome. Our work in this area is focused on maintaining reliable and effective systems of executive government and our measures reflect this. They focus on New Zealanders' trust and confidence in government, as well as the satisfaction of our key stakeholders with these institutions, as well as the services we provide in support of them. The way in which we measure these indicators is set out on page 56. All the indicators are on track.

Indicator	Desired trend	Progress 2021/22	Progress 2022/23	Outcome this contributes to
Trust and confidence in government[1]	↑	○	✔	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
Governor-General satisfaction with support provided	→ or ↑	✔	✔	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 2022/23

We supported the transition to a new Prime Minister and portfolio changes

In January 2023 a new Prime Minister was appointed. Over this year, we supported Prime Minister, Rt Hon Chris Hipkins to make changes to ministerial portfolios. This included induction briefings to the new Ministers to support them in their roles.

An updated edition of the Cabinet Manual, the authoritative guide to central government decision-making, was published on 20 April 2023. Work to update the Cabinet Manual included a review process, engagement with interagency partners, consideration by a Ministerial Reference Group and approval by Cabinet. The new Cabinet Manual content reflects legislative changes, updated guidance on privacy and the proactive release of Cabinet material, and the modernised principles governing the public service.

We enhanced Aotearoa New Zealand's sense of nationhood

Rt Hon Dame Cindy Kiro's strategic priorities underpin her time in office and provide a focus for the activities the Governor-General undertakes. These priority areas comprise stewardship of the natural world; wellbeing for all; celebrating diversity and commonality; and expertise, knowledge and understanding.

A wide range of events showcased these objectives over the year including an engagement with QEII National Trust Ngā Kairauhi Papa; Community Foundations of New Zealand's celebration of Community Philanthropy; a visit to Refugee Services in Timaru; United Nations International Holocaust Remembrance Day; and Electoral Commission National Training for Electorate Managers. The Governor-General also undertook regional visits to West Auckland and Porirua, as well as visits to the Cook Islands, one of the Realm of New Zealand countries, and Samoa.

We increased public awareness of the New Zealand Royal Honours system

The New Zealand Royal Honours system recognises exceptional New Zealanders and celebrates their achievements. The lists continue the trend of recent years that 50% of recipients are female.

An additional 2022 Special Honours List (New Zealand Bravery Awards) acknowledged the extraordinary courage of seven people, mostly related to the rescue efforts following the 2019 Whakaari White Island eruption. The list included one award of our second highest Bravery honour, The New Zealand Bravery Star.

The timing of the New Zealand celebration of the King's Birthday in 2023 coincided with the main events in the United Kingdom to mark the Coronation of King Charles III. On the Prime Minister’s recommendation, the King agreed that the significance of the Coronation be acknowledged in New Zealand by renaming the King’s Birthday 2023 Honours list as the ‘King’s Birthday and Coronation Honours List 2023’. To mark the King’s coronation the list included the appointment of Her Majesty The Queen Camilla as an additional member of the Order of New Zealand, our highest honour.

Strengthening resilience to disinformation

As pandemic restrictions have eased, disinformation and conspiracy narratives have shifted from COVID-19 to a range of other issues. In response, DPMC is leading work to help people living in New Zealand to have a better understanding of, and resilience against, the harms of disinformation. This work includes three initiatives to:

• establish a civil society-led group to scope longer-term work;
• support capacity-building and community resilience; and
• commission public research and analysis into the problem.

It is important to ensure continued protection of human rights including freedom of expression, and an open online environment. We remain focused on Aotearoa New Zealand's specific needs, while taking lessons from overseas on efforts to counter this global issue.

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

What we intended to achieve

Measuring our progress

The table below sets out the indicators we use to monitor our progress against this outcome. Our work in this area is focused on ensuring that people living in New Zealand are well-informed and able to respond to security and emergency threats and our measures reflect this. They focus on DPMC and NEMA's leadership of the National Security and Emergency Management Systems and the outcomes of this for public trust and confidence in the systems and readiness to take action. The way in which we measure these indicators is set out on page 60.

All the indicators are on track, other than New Zealanders' emergency preparedness. The percentage of people who report taking action to prepare for an earthquake or know the correct action to take falls the further away we are from the last significant earthquake. NEMA's public education programme is focused on raising peoples' awareness and preparedness (page 62).

Indicator	Desired trend	Progress 2021/22	Progress 2022/23	Outcome this contributes to
National Security and Emergency Management System stakeholder satisfaction - indicator to be further developed	n/a	Indicator under development	Indicator under development [2]	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 (National Emergency Management Agency)	↑	✔	✔	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.	↑	✗	✗	Community preparedness and resilience

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

What we achieved in 2022/23

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 systems fosters cohesion and collaboration and is trusted by the public. Some highlights in 2022/23 include:

Development of the first National Security Strategy

We engaged widely with New Zealanders on the first National Security Strategy to protect New Zealand and its people, today and into the future. The strategy will:

• encourage a more open, accessible, and mature conversation with New Zealanders on national security;
• provide a clear articulation of New Zealand's national security vision, interests, principles and priorities;
• ensure New Zealand can make appropriate national security choices for the nation;
• provide overarching guidance across a growing number of individual strategies;
• recognise the connections between national security and other important areas, like climate change and social cohesion; and
• reflect te Tiriti o Waitangi, and the role of Māori in national security.

We helped build a public conversation about Aotearoa's national security through our Long-term Insights Briefing

We want to help people living in New Zealand to better understand national security threats, what is being done about them and the important role individuals, business, society and communities can play. Co-led by DPMC and Ministry of Foreign Affairs and Trade on behalf of New Zealand's Security and Intelligence Board agencies we delivered the National Security Long-term Insights Briefing Let’s talk about our national security: Engaging an increasingly diverse Aotearoa New Zealand on national security risks, challenges and opportunities.

The briefing reflects on the importance of being transparent about national security challenges we may face in the future and the significance of having an effective engagement with communities to build resilience as a whole country.

Some insights shared through the briefing include:

• broader global trends (such as increasing competition, technology change, climate change and future pandemics) impacting and driving many of the future threats and challenges we could face such as cyber attacks, terrorism, violent extremism, disinformation, and transnational organised crime;
• recognition that over the next 10-15 years, threats to our national security could become more complex and linked, resulting in sometimes unpredictable outcomes. As a result, New Zealand's national security system will continue to experience high demand; and
• understanding that working collaboratively with partners through our international relationships, with communities and businesses, by sharing more information with the public on the role they can play will be crucial to meeting future challenges.

We learned more about people's views through the National Security Public Survey (2022 & 2023)

As part of the National Security Long-term Insights Briefing, we commissioned an independently run, representative survey of more than 1,000 people living in New Zealand so we can learn more about their views on our national security. We repeated this survey in the first half of 2023 with more than 2,000 people.

Through the survey, we heard that people living in New Zealand consider many hazards and threats are more likely to occur in the next 12 months. We also heard that people want us to share more information about national security.

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

There are five workstreams in the Government's response to the report of the Royal Commission of Inquiry into the terrorist attack on Christchurch masjidain. Working with agencies and communities across New Zealand, DPMC is responsible for co‑ordinating the all-of-government response to changes to the national security system, counterterrorism, social cohesion, responding to hate motivated offences, and firearms and safety.

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 report of the Royal Commission of Inquiry.

We enabled New Zealanders to be confident and secure online

Cyber security is among the top five national security threats concerning people living in New Zealand.

DPMC has continued to set the direction for cyber security policy, to help New Zealanders take action to address cyber security threats and build cyber security resilience and capacity.

The Cyber Security Strategy Coordination Committee made significant progress to deliver 13 initiatives across the Strategy's five priority areas - resilience, awareness, workforce, cybercrime and international engagements.

Key achievements across the priority areas include:

• engaging and involving the public in cyber security issues, by improving accessibility to cyber resources for diverse communities, launching Cyber Skills Aotearoa in schools, and working to co-design a bespoke model for Māori involvement in New Zealand's approach to cybercrime;
• addressing information gaps in government knowledge and expertise, by commissioning research projects to identify potential policy responses to current and emerging trends;
• streamlining and strengthening operational structures and information flows within and between agencies, by working to consolidate cyber incident reporting functions and broadening secondment opportunities to enhance relationships and information-sharing across agencies;
• representing and promoting New Zealand's interests internationally, including discussions with close partners on critical and sensitive issues, participating in UN and other international governance bodies relating to cyber security, and supporting Ukraine's cyber security following the Russian invasion; and
• supporting our Pacific partners to build and strengthen their own cyber capabilities, as well as participate in international forums to promote their perspectives on key issues.

We supported effective response to national security risks and adverse events

We want to achieve effective reduction, readiness, response and recovery to national security risks, emergencies and adverse events. 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 on page 31.

We supported all-of-government coordinated decision-making through convening the Official Committee for Domestic and External Security Coordination (ODESC)

The ODESC system is New Zealand's all-hazards, all-risks strategic crisis management system, which provides for a coordinated government response to emerging, or actual crises. The Prime Minister is the lead decision maker in the ODESC system, supported by the DPMC Chief Executive as Chair ODESC. The system focuses on strategic matters, and looks to guide agencies' involvement in crisis management, to ensure resources are directed to where they are most needed and that risks, implications, and mitigations across agencies are understood and addressed. DPMC's Strategic Crisis Management Unit supports the ODESC system through thought leadership, coordination and secretariat support.

In 2022/23, the ODESC system was activated in response to a number of matters including:

• North Island severe weather events;
• cyber security incidents;
• complex consular cases such as a New Zealand citizen being held hostage in Papua as well as two New Zealand citizens detained in Iran;
• the shortage of carbon dioxide;
• implications from the Russian invasion of Ukraine; and
• humanitarian and disaster relief to Vanuatu.

Advancing an ambitious, resilient and well-governed DPMC#

Print this section

Strategic, effective influencers, leaders and system stewards

During the year we worked closely with other central agencies to lead the public service and deliver results for New Zealanders. We continued to work collaboratively across the policy, national security, and emergency management systems to advance an ambitious, resilient and well-governed Aotearoa New Zealand. We also continued to support executive government decision-making by providing effective and impartial Secretariat services.

In both national security and child wellbeing we have had a particular focus on building our capability to engage effectively with Aotearoa's diverse communities and with Māori as we develop policy and advice for Ministers.

Long-term Insights Briefings are a new requirement introduced under the Public Service Act 2020. They are one of the ways that the chief executives of government agencies give effect to the public service principle of stewardship. They are focused on the future, providing information about medium and long-term trends, risks and opportunities that may affect Aotearoa New Zealand[3]. During the year, we co-ordinated this process across government and supported agencies as they developed Long-term Insights.

First choice employer

This year, we made progress in creating a diverse, positive and safe working environment in which our staff can learn and grow. In 2022/23, this included advancing a range of initiatives including those aligned with our aspiration to improve our cultural competency and building our te ao Māori capability across both DPMC and NEMA. For further information, refer to pages 23 to 25.

During the year, we continued our focus on our health, safety and security obligations. Health and Safety Committee meetings were held regularly and issues were resolved quickly. There were high completion rates (exceeding 90%) for health, safety and security induction modules, with completion done within the first two weeks. In 2022/23 we completed the annual Protective Security Requirements self-assessment to ensure we meet all mandatory protective requirements and used those results to uplift our security capability.

Well-positioned to deliver, now and in the future

DPMC is a flexible organisation that gears up to meet the emerging priorities of the Government. This year, we supported the COVID-19 Response Group and Health and Disability System Reform Transition Unit to transition out of DPMC, and have established the Cyclone Recovery and COVID-19 RCOI Coordination units in the Department.

This operating model is a challenge for our corporate centre that must support the organisation as it grows and contracts and support new organisational forms (e.g. functional Chief Executive). Ensuring the resilience and sustainability of our corporate function in this environment remains a focus and work in progress.

Our Risk and Assurance Committee continued to oversee our risk and assurance activities to give the Chief Executive direct and independent advice on these and other matters.

In 2022/23 we continued to implement our Carbon Neutral Government Programme Emissions Reduction Plans, regularly reporting on progress to reduce emissions to the Executive Leadership Team Board and updating our corporate policies and procedures to align with broader emissions reduction goals.

Looking to the future, in February 2023, we published our Strategic Intentions 2023/24 to 2026/27, which sets out how we will deliver on our purpose and support the Government to deliver its priorities. We used this as an opportunity to set performance indicators so we can better monitor and report on the outcomes we are seeking to achieve.

Measuring our progress

The table below sets out the indicators we use to monitor our progress advancing an ambitious, resilient, and well-governed DPMC. Our measures reflect the breadth of our ambition in this areas. The way in which we measure these indicators is set out on page 20.

The challenging environment in which we have been operating in the last two years is reflected in some of our indicators. Staff satisfaction across both DPMC and NEMA shows a slow downward trend to just below the public service average engagement levels and unplanned turnover is higher than in the past. These results are discussed regularly with people leaders and at all staff meetings, with several initiatives planned to address key areas of concern.

Our combined gender pay gap across DPMC and NEMA is trending down to an average of 10%. Within DPMC this fluctuated throughout the year reflecting the reality of an organisation whose employee base shifts dramatically for short periods, ending the year at 15.5%. The gender pay gap was regularly monitored by the Executive Leadership Team Board with DPMC and NEMA developing and implementing Kia Toipoto Action Plans to attract and retain diverse and talented employees. For further information on NEMA's gender pay gap and initiatives, refer to page 41.

Indicator	Desired trend	Progress 2021/22	Progress 2022/23	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, well positioned to deliver
Unplanned turnover	↓	✗	✗	Engaged and high performing, 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 and Whāinga Amorangi

Our te reo Māori plan, shared across DPMC and NEMA, supports 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.

Our shared DPMC and NEMA Whāinga Amorangi plan is our starting point for building our internal capability 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 te reo Māori and the New Zealand history/Treaty of Waitangi outcome areas are summarised below. The indicators above were chosen as these are tangible area of progress of capability development. We identified the level of progress against the Whāinga Amorangi framework and determined our aspiration for our staff to be ‘comfortable' in both areas, acknowledging this would take some time. The trend is therefore to move more staff into the ‘moderately confident' and above ratings from the base year of 2020/21.

Indicator/action	Measure	Baseline 2020/21	Progress 2021/22	Progress 2022/23
We can open and close a hui in te reo and recite our pepeha By 30 June 2023	Moderately confident or above:
	Introduce myself in te reo Māori	27%	48%	52%	✔
	Practice tikanga in the office, including in meetings	20%	41%	45%	✔
Development opportunities are provided to engagement staff to integrate their understanding of te reo Māori with tikanga By 30 June 2023	No specific measure in place	n/a	n/a	n/a	●
Percentage of employees who can describe key historical moments in the Māori Crown relationship from a Māori and Pākehā perspective	Moderately confident or above	33%	43%	45%	✔
Percentage of staff who can sing two waiata from memory	Moderately confident or above	40%	44%	49%	✔

Key to the indicators:    ✔ Complete/achieved    ● No progress to report

Diversity, equity and inclusion

Building diversity and inclusion involves people across DPMC and NEMA providing input on organisational initiatives, challenges and approaches through all-staff hui, surveys, and network kōrero. DPMC also works with other security and intelligence agencies on collective efforts to build a more diverse workforce and inclusive sector.

Our staff survey Kōrero Mai, held in May 2023, looks at our staff experience. The results show both strengths to build and improvements to make. Our engagement level dropped slightly with our focus on diversity and inclusion and te ao Māori remaining steady.

People Score (engagement)	2020	2022	2023
DPMC	63%	64%	61%
NEMA	60%	60%	58%

Two of our highest rating questions are about recognising individual contributions and celebrating team achievements - a positive indicator of inclusive behaviour.

	DPMC	NEMA	State sector
The contributions of individuals are recognised in my team	73%	70%	67%
We celebrate achievements as a team	71%	65%	67%

Our activities to build diversity, equity, and inclusion over the last year are shown below, against the Papa Pounamu commitments.

Addressing Bias

In collaboration with staff networks we created a guide to inclusive language. This guide supports staff to understand the impact of their word choices on others.

We released new unconscious bias elearning material for staff, including targeted information for recruitment, and our new induction material supports and acknowledges different cultural and social norms.

DPMC and NEMA have refreshed development guidance on progression and promotion.

Cultural Competence

Our learning management system (eTipu) provides online access to Mana Āki cultural competency programme, te reo and te ao Māori elearning and in-person options, and modules on Pacific communities and the Rainbow community. NEMA has a bespoke cultural confidence programme for staff, with a focus on te reo and tikanga Māori.

Our Kōrero Series brings diverse perspectives and information to our people through speakers on topics such as the experiences of people new to the workforce, learning te reo Māori, race unity, faith in the workplace, and Treaty clauses in legislation. All recorded sessions are available on eTipu as a learning resource.

Over the summer of 2022/23 DPMC welcomed two interns from the Tupu Tai Pasifika Internship Programme and two from the TupuToa Internship Programme for Māori and Pacific tertiary students.

Our intranet is a source for information for our people on different worldviews, cultural and social norms. This includes information about events of cultural significance, staff stories, tools and resources, and opportunities to participate in groups or events.

Inclusive Leadership

Leaders undertake a range of formal and on-the-job development opportunities. The number of people leaders who have engaged with key public sector leadership development training in the 2022/23 year is shown below:

Training provider	Number of people leaders
Leadership Development Centre	12
New Zealand Defence Force	3

Our Leadership Forums explore inclusive leadership practice, for example, facilitated sessions on speaking up safely and leadership skills such as leading culture, empathy, and perspective taking. Regular leadership communications include material on topics such as understanding individual and group needs, wellbeing, and support for networks. Team development is offered so that leaders are supported to build their skills and inclusive approaches, and their teams develop in a unified way.

A group of people leaders and staff explored an inclusive leadership coaching technique, creating space for the staff member's voice. Participants shared their experiences to inform future leadership development.

Building Relationships

Our Kōrero Series of speakers builds relationships by bringing internal and external people together. Social networks include the waiata group and coffee roulette, where people are paired up to meet and chat each month, creating space for connection.

The DPMC and NEMA Kōrero Mai surveys enable discussions about results and actions at organisation, group, and team levels. Creating shared goals generates understanding and builds connections.

Induction materials prompt personal connections, for example, conversation starter questions for leaders are focused on individual needs and getting to know one another.

Employee-led Networks

All employee-led networks have an Executive Leadership Team Board sponsor to profile their mahi and provide advice and encouragement. Each network has a representative on the Culture and Engagement Network, a leadership-led group with representatives from DPMC and NEMA. We have five employee-led networks: Women's, Rainbow, Interfaith, New Professionals, and Tai Ora (Climate Change and Sustainability). Our networks are active in sharing stories and information with our kaimahi.

The Interfaith network created He Kete Karakia for staff; a collection of karakia, incantations, prayers, mantra, blessings and reflections precious to different faith traditions. Tai Ora has supported the Carbon Neutral Government Programme work for DPMC and NEMA.

Our employee-led networks are building connections to cross-agency networks in the public sector. Cross‑agency networks are promoted to all staff so they know what is available for them. We also support wider external connections through our employee-led networks, for example, membership to Rainbow Wellington.

We have additional workplace networks where people build relationships, improve practice, and have their views represented. These include the Peer Review Network (improving the quality and consistency of peer review), the NEMA women's network (focused on issues for women in emergency management), and the NEMA diversity and inclusion working group.

Our workforce[5]

Carbon Neutral Government Programme

In response to the Government's announcement of a Climate Emergency in 2020, DPMC 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 2023.

Independent verification

We have achieved Toitū Carbonreduce Certification in June 2023 and will continue to measure, manage, and reduce our carbon emission in line with ISO14064-1:2018.

We have restated previous annual emissions to reflect the change in emissions factors as issued by the Ministry for the Environment (MfE).

Total annual emissions and their source[6]

In 2019/20 our base year, we emitted 937.22 tonnes of carbon dioxide equivalent (tCO₂e). In the following years our operations were impacted by COVID-19 with 626.48 tCO₂e emitted in 2020/21, and 831.98 tCO₂e emitted in 2021/22. This year we emitted more than our previous years due to removal of international travel restrictions, higher demand from international partners, and our Cyclone Recovery response mahi.

Emissions profile broken down by category and total annual emissions

Category		Scope	2019/20 (tCO2e)	2021/22 (tCO2e)	2022/23 (tCO2e)
1	Direct emissions Natural Gas Transport fuels Fuel use for generators Refrigerants LPG bottles	Scope 1	124.73	177.13	164.49
2	Indirect emissions from imported energy Electricity use	Scope 2	91.38	125.16	126.53
3	Indirect emissions from transportation Air Travel Rental vehicles use Taxis and rideshare Accommodation Staff working from home	Scope 3	682.35	472.55	821.06
4	Indirect emissions from products and services used by organisation Transmission of energy Water supply and treatment Waste disposal	Scope 3	36.76	57.14	47.04
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)			937.22	831.98	1,159.12
Change in gross emissions from previous financial year				32.80%	42.06%
Change in gross emissions since base year				-11.22%	25.36%

The table above shows our greenhouse gas emissions profile broken down by the four CNGP Categories 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 increased above pre-COVID-19 levels.

Total transportation emissions (tCO₂e) 2021/22 to 2022/23[7]

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 per FTE has decreased from 4.71 tCO₂e to 4.01 tCO₂e per full-time equivalent staff members (FTE) as shown below.

Full-time Equivalents and Expenditure for 2022/23

KPI	2019/20	2021/22	2022/23
FTEs	198.99	305.35	288.43
Expenditure ($m)[8]		157.18	69.31
Emissions intensity
Total gross emissions per FTE (tCO2e)	4.71	2.72	4.01
Total gross emissions per million dollars of expenditure (tCO2e)		5.29	16.72

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 740.40 tCO₂e - a 21% reduction in gross emission compared to base year.
• 2030 target: Gross emission (all Categories) to be no more than 543.59 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 for use by Government House staff in Auckland;
• amended travel policy in November 2022 to bring forward emissions consideration to reduce the volume and intensity of air travel;
• analysed group level travel profiles as part of our quarterly reporting;
• created framework with our travel provider for categorising reasons for travel at point of booking;
• commissioned specialist adviser for energy efficiency investment options at Government Houses;
• reviewed capital expenditure criteria for Government Houses and other investment choices
• developed new codes with finance business partners to increase data quality; 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. This year we analysed our business-related travel and created necessary insights that will foster climate positive behaviours in our engagement with both domestic and international partners.

National Emergency Management Agency Annual Report 2022/23 | Te Rākau Whakamarumaru Pūrongo-ā-tau 2022/23#

Print this section

Our Strategic Framework#

Print this section

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

Print this section

Aotearoa New Zealand continues to see the impacts of an increase in the frequency and intensity of severe weather events and emergencies. These events have very real consequences for individuals, whānau, and communities. The impacts to people are compounded by effects on property, infrastructure, the economy, and environment.

In early 2023, several significant severe weather events, including Cyclones Hale and Gabrielle, impacted many parts of the North Island and saw the third ever State of National Emergency declared, lasting from 14 February through to 14 March.

Following these North Island severe weather events, the National Emergency Management Agency (NEMA) had to readjust its priorities and goals. The demands of more frequently occurring events are testing the capacity of our workforce and ability to balance priorities across the 4Rs (Risk Reduction, Readiness, Response and Recovery).

I am immensely proud of our NEMA staff who serviced the response to the State of National Emergency in the National Crisis Management Centre, as well as those deployed around the North Island, and those supporting the response from business-as-usual roles. Our staff showed dedication, professionalism, and endurance to support those affected by the disaster. Recovery from the North Island severe weather events will be ongoing, and some regions will take many years to recover. Our hearts go out to everyone affected. With a country as small and well connected as ours, it is hard to imagine there were many unaffected.

Despite an enormous response and recovery effort and supporting long-term recovery in other areas of Aotearoa New Zealand following events outside of the recent North Island severe weather events, NEMA has begun and progressed work that will have lasting benefits to the emergency management system. Notable highlights include the first of a series of multi-agency Catastrophic Planning workshops commencing November 2022 and the Emergency Management Bill being introduced in Parliament in June 2023.

Emergency management is a team effort. As steward of the emergency management system, we acknowledge and are grateful for our partners including, but not limited to, iwi, Civil Defence Emergency Management Groups, local authorities, other government agencies, lifeline utilities and community organisations.

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#

Print this section

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 the 4Rs (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.

NEMA leads geological and meteorological national emergencies and supports other lead agencies in the response and recovery of other hazard events. Whether NEMA leads or supports the response and recovery depends on the scale of the emergency. For national emergencies, NEMA coordinates central government's response and recovery functions. For example, when the State of National Emergency was declared during Cyclone Gabrielle, NEMA led the response. Additionally, many emergencies over the past year were local or regional emergencies. During these events, NEMA's role was to support the management of local emergencies by Civil Defence Emergency Management (CDEM) Groups and, where necessary, coordinated national‑level support.

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, research and science organisations, 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[9]

Our numbers at a glance#

Print this section

Our performance | Ko tā mātou mahi#

Print this section

What we achieved in 2022/23

We responded to multiple emergency events and a State of National Emergency

After one National Coordination Centre activation and two instances of being in enhanced monitoring mode in late 2022, Ex-Cyclone Hale impacted multiple regions with record breaking rainfall in January 2023. This was followed by Auckland, Northland, Waitomo, and Thames-Coromandel flooding. Then, Cyclone Gabrielle impacted all regions along the east coast of the North Island in February and saw the third-ever State of National Emergency declared. These became known as the North Island severe weather events.

NEMA activated the National Coordination Centre for eight weeks to respond to this severe weather, with all staff contributing to the response and early recovery. NEMA deployed approximately 670 personnel including NEMA staff, specialists from the Emergency Management Assistance Team (EMAT), and other support staff from a range of agencies to support the response. After transitioning from response to recovery, the work continued, as NEMA collaborated on recovery efforts with the newly established Cyclone Recovery Unit, regional Civil Defence Emergency Management (CDEM) Groups, and local organisations.

Following the response to the North Island Severe Weather events NEMA began an After-Action Review of its role and actions in the response and early recovery phases. After any significant emergency, NEMA reflects on how well things went while also looking for opportunities to make things better. It will provide us with important lessons to improve our readiness, response, and recovery capability for the future. The After-Action Review focuses on NEMA's response; it is not a review of the emergency management system, or other agencies' response to this event.

We worked to update emergency management system settings and standards

This year the Emergency Management Bill was introduced. This legislation will replace the two-decades old Civil Defence Emergency Management Act 2002. CDEM Groups, Māori emergency management practitioners, and partner agencies were engaged in policy development leading up to the Bill.

Science and advanced modelling techniques have given NEMA a clearer picture of the likelihood of catastrophic natural hazard events occurring such as major earthquakes and tsunami. This year, NEMA started work on understanding and preparing for such catastrophic events.

We continue to build community and individual readiness for future emergencies

NEMA has made strides in its public education programme. This year NEMA launched a tsunami evacuation map which promotes tsunami safety by allowing people to use their address to determine whether they are within or near a tsunami evacuation zone.

NEMA added a new education campaign, ‘Prep Talk', to its lineup of emergency preparedness and safety awareness campaigns. ‘Prep Talk' has a Māori and Pacific focus, promoting emergency preparedness through community and whānau connectedness. The beginning of 2023 showed the importance of NEMA's public education campaigns including ‘Get The Flood Out' and ‘Deep Waters are Deep Trouble'.

Ten languages were added to the getready.govt.nz website, which is now available in Māori, New Zealand Sign Language, Arabic, Simplified Chinese, Traditional Chinese, Cook Islands Māori, Hindi, Japanese, Niuean, Punjabi, Samoan, Spanish, Tagalog, and Tongan. NEMA also celebrated the tenth anniversary of ShakeOut, New Zealand's national earthquake drill, which had over 700,000 participants.

We continue to improve our operational readiness for future emergencies

We continue to prioritise establishing a workforce for the Auckland-based Alternative National Crisis Management Centre. We have worked with more than 50 national agencies to build an alternative emergency workforce pool of over 400 people, have held the first two training programmes and scheduled monthly training.

We have also continued to professionalise the emergency management workforce, with 147 people achieving the new Knowledge of Coordinated Incident Management System (CIMS) unit standard and introducing a new National Controller development programme. National Level 4 CIMS courses are now available through Takatū (NEMA's online training platform) for Intelligence, Operations, and Planning functions, with more in development.

This year NEMA developed a work programme focused on advancing recovery preparedness to ensure Aotearoa New Zealand is ready and able to support communities' recovery following emergencies.

Risk Reduction - Sendai Midterm Report

The Sendai Framework for Disaster Risk Reduction 2015-2030 is the globally agreed blueprint to prevent new, and reduce existing, disaster risk. All nations were asked by the United Nations General Assembly to contribute to a review of the framework at the midpoint of its implementation, to assess progress, and identify opportunities to accelerate the path towards achieving the global targets by 2030.

NEMA compiled Aotearoa New Zealand's Sendai Midterm Review, in consultation with government agencies delivering risk reduction measures. This was submitted to the United Nations for its final report, presented in New York in May 2023. The work of the New Zealand government to expand insurance coverage and enhance earthquake mitigation was subsequently highlighted as a global example of good practice in disaster risk reduction by the UN Office for Disaster Risk Reduction.

We have deepened our relationships and partnerships

This year we signed a Memorandum of Cooperation with the United States Federal Emergency Management Agency and a Memorandum of Understanding with Australia's National Emergency Management Agency. These agreements and the resulting sharing of best practice and lessons learned, strengthen global emergency management capability, enhance disaster resilience, and reduce disaster risk in Aotearoa New Zealand.

In 2022 NEMA deployed to Kiribati, and Australia to help with responses to drought, and flooding, respectively. These deployments deepen our international partnerships, in turn supporting Aotearoa New Zealand build and maintain our relevance and connection with Pacific partner countries, minimise humanitarian impacts during and following a disaster, and reduce response costs in the Pacific for partner countries and Aotearoa New Zealand.

NEMA aims to reduce the impact of emergencies on Māori by recognising, valuing, and enabling Māori participation in all parts of the system. The 2023 North Island severe weather events saw the first ever activation of the Kaitohutohu Coordinated Incident Management System function. This national level Māori liaison function manages relationships and issues pertaining to iwi, hapū and whānau during a response.

Building our organisational health and capability

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 Triti o Waitangi and Aotearoa history. NEMA's own te reo Māori me ona tikanga capability programme is underway, with tailored reo Māori training available to staff. Each NEMA staff member has an individual development plan, which includes planning for continuous development, modelling NEMA values and developing Māori capability.

Integrating diversity and inclusion is a key ingredient for our organisational success - it helps NEMA improve services to the government and people of Aotearoa New Zealand, and to attract and retain talented employees. In May, a NEMA Women's Network was established to support NEMA women reach their potential, to raise awareness of challenges and opportunities for women within emergency management and create a stronger agency through embracing and empowering diversity. Other staff-led networks include the shared DPMC and NEMA Rainbow Network and Women's Network.

NEMA has a gender pay gap action plan focused on what is required for NEMA to close its gender pay gap. Within the plan, the focus areas include staff progression; the attraction of female applicants into some parts of NEMA; addressing pay gaps in permanent appointments; and ensuring there is no bias or discrimination in remuneration systems and HR practices. Already we have seen a significant decrease in the gender pay gap from 16.2% in June 2021 to 4.3% in June 2023.

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 have begun development of 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 20 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). 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 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 2023.

Independent verification

We are proud to have achieved Toitū Carbonreduce Certification in June 2023 and will continue to measure, manage, and reduce our carbon emission in line with ISO14064-1:2018.

We have restated previous annual emissions to reflect the change in emissions factors as issued by the Ministry for the Environment (MfE).

Total annual emissions and their source[10]

In our base year, we emitted 254.55 tonnes of carbon dioxide equivalent (tCO₂e). In the following years our operations were impacted by COVID-19 with 251.44 tCO₂e emitted in 2020/21 and 309.58 tCO₂e emitted in 2021/22. This year we emitted more than our previous years due to removal of international travel restrictions and higher demand for domestic travel as we responded to a number of complex emergencies.

Emissions profile broken down by category and total annual emissions

Category		2019/20 (tCO2e)	2021/22 (tCO2e)	2022/23 (tCO2e)
1	Direct emissions Natural gas Transport fuels	36.66	53.76	70.38
2	Indirect emissions from imported energy Electricity use	7.34	19.60	22.37
3	Indirect emissions from transportation Air Travel Rental vehicles use Taxis and rideshare Accommodation Staff working from home	205.02	216.20	354.33
4	Indirect emissions from products and services used by organisation Transmission of energy Water supply and treatment Waste disposal	4.38	17.19	20.05
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	306.76	467.14
Change in gross emissions from previous financial year			23.20%	52.28%
Change in gross emissions since base year			21.05%	84.34%

The table above shows our greenhouse gas emissions profile broken down by the four CNGP Categories applicable to NEMA. 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 increased significantly beyond pre-COVID-19 levels due to the higher frequency of serve weather events including New Zealand's third ever National State of Emergency. We activated the National Coordination Centre and deployed staff across the nation to support this significant response.

Total transportation emissions (tCO₂e) 2021/22 to 2022/23[11]

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. While full-time equivalent staff members (FTE) increased by 1.6 times over two years, our emission intensity per FTE has decreased from 4.03 tCO₂e to 2.78 tCO₂e per as shown below.

Full-time Equivalents and Expenditure for 2022/23

KPI	2019/20	2021/22	2022/23
FTEs	63.10	149.90	167.87
Expenditure ($m)[12]		36.93	44.11
Emissions intensity
Total gross emissions per FTE (tCO2e)	4.03	2.06	2.78
Total gross emissions per million dollars of expenditure (tCO2e)		8.38	10.59

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 201.09 tCO₂e - a 21% reduction in gross emission compared to base year.
• 2030 target: Gross emission (all Categories) to be no more than 147.64 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:

• amended travel policy in November 2022 to bring forward emissions consideration to reduce the volume and intensity of air travel;
• analysed group level travel profiles as part of our quarterly reporting;
• created framework with our travel provider for categorising reasons for travel at point of booking;
• 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;
• developed new codes with finance business partners to increase data quality; 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 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. This year we analysed our business-related travel and created necessary insights that will foster climate positive behaviours in our engagement with both domestic and international partners.

Our performance reporting | Tā mātou pūrongo mahi#

Print this section

Service Performance Judgements and Assumptions#

Print this section

The service performance information on pages 4 to 19, 46 to 48 and 52 to 64 was prepared in accordance with PBE FRS 48. Performance measures deleted or expired through the Supplementary Estimates 2022/23 from the Main Estimates 2022/23 are explained on pages 52, 55, 59 to 60, 64.

Disclosure of judgements

In preparing the service performance information for the 2022/23 year the Department has made a number of significant judgements about what information to present. These judgements are based on an assessment of the most appropriate and meaningful information for readers assessing performance against the Department's objectives and to fairly represent the diverse nature of the Department's activities. Decisions about the service performance information to present were made by Executive Leadership Team Board members in consultation with the relevant appropriation Ministers either when an appropriation was created, or as a response to having identified alternative measures that enhance the quality of performance information that can be presented and to meet PBE FRS 48 standards.

The judgements that had the most significant effect on the non-financial information presented related to the selection of information about the Department's Strategic Intentions and related activities during the period. For some activities there is no distinct numerical value that can be observed to reflect the effectiveness of that activity. Judgement is applied to identify how measures can be derived to provide readers of the Annual Report with relevant information.

Significant judgements are required in relation to the Department's policy and assessments quality and Ministerial satisfaction measures. How we make these judgements is described below.

Materiality

In our reporting we provide an explanation where non-achievement of a target is material. Materiality is identified by the auditors as 8% or more. Where the target performance is 4 out of 5, this equates to a variance in scoring of 0.32 or more below the target. This means that a score of 3.68 or below will have an accompanying explanation as to why the target was not met. A score below 4 and above 3.68 is reported as not achieved without additional commentary.

Quality of Policy Advice and Assessments

A key role of DPMC is the provision of policy advice and assessments to inform decision making. It is important that our policy advice and assessments are of high-quality, timely, and relevant. We use the Policy Quality Framework (PQF) to assess the quality of our policy advice and assessments. We have set targets related to the average quality of our advice and assessments, and additionally for policy advice, the distribution of policy quality scores so that we can provide an additional focus for our policy quality improvement efforts.

Average scores

The PQF sets a public service-wide target for policy quality of 3 out of 5 for an assessed sample of papers. DPMC sets a higher target of 4 out of 5.

We have used the following judgements when reporting these results:

• Not achieved - where the policy or assessment quality score is less than the target score.
• Achieved - where the policy or assessment quality score meets or exceeds the target score.

Distribution measures

The PQF does not set a public service-wide target for the distribution of policy quality scores across an assessed sample. DPMC has set the following targets:

• 70% of papers score 3 or higher;
• 30% of papers score 4 or higher;
• no more than 10% of papers score 2 or less.

We have used the following judgements when reporting these results:

• Not achieved - where fewer than two out of the three dimensions of the policy quality distribution score have been met.
• Partially achieved - where two out of the three dimensions of the policy quality distribution score have been met.
• Achieved - where all of the three dimensions of the policy quality distribution score have been met.

Satisfaction Measures

Satisfaction with the advice and support provided by the Department enables Ministerial portfolio holders and key stakeholders to discharge their obligations and responsibilities and provides a fair reflection on the quality of these services. The PQF sets out a public service-wide methodology for assessing Ministerial and stakeholder satisfaction. The PQF does not set a public-service wide standard for this measure. All DPMC satisfaction measures have a target of 4 out of 5, reflecting the high level of ambition for a well-governed Aotearoa New Zealand.

Changes in responsibility

Satisfaction with advice and support services provided is assessed bi-annually for the Governor-General, and the Prime Minister for Cabinet Office services.

• In 2022/23, due to a change in Prime Minister, the Cabinet Office survey was completed by both Prime Ministers.

All other satisfaction surveys are conducted annually for the entire financial year. Where there has been a change in Minister or other stakeholder during the financial year, the Department encourages them to seek the view of their predecessor in completing the survey.

• In 2022/23, due to changes in Ministerial portfolios, the following Ministers completed the Ministerial Satisfaction survey at year end:
  • Prime Minister Rt Hon Chris Hipkins – Prime Minister and Minister for National Security and Intelligence
  • Hon Dr Ayesha Verrall – Minister for COVID-19 Response and Minister of Health
  • Hon Jan Tinetti – Minister for Child Poverty Reduction
  • Hon Ginny Andersen – Minister for the Digital Economy and Communications.

Other appropriation measures

The selection of other activity measures and their methodology is explained under each appropriation performance report. Where whole numbers are to be reported, these have been rounded, where necessary, to the nearest whole number.

Outcomes measures

The significant judgements and methodology relating to specific outcome measures are shown below.

Indicator and trend	Methodology	Judgement
Outcome 1: The Government is enabled to deliver its priorities
Quality of Policy Advice and Assessments increases over baseline year (2019/20: 3.50)	Three policy quality assessment measures are averaged to determine the trend. These are the DPMC and NEMA average scores for assessed policy papers and average score of a sample of intelligence assessments reviewed by an external reviewer (the latter survey was not included in the baseline year).	Not on track - where the average of the policy or assessment quality scores is less than the baseline score On track - where the average of the policy or assessment quality scores exceeds the baseline score No change - where the average of the policy or assessment quality scores has not changed from the baseline score Materiality: 8% or 0.28 from baseline
Prime Minister and Ministerial satisfaction with advice and servicing is maintained or increases over baseline year (2019/20: 4.80)	All portfolio satisfaction measures for the Prime Minister and Ministers are averaged to determine the trend. These will fluctuate each year depending on the number of portfolios and the number of measures within each.	Not on track - where the average of the satisfaction scores is less than the baseline score On track - where the average of the satisfaction scores meets or exceeds the baseline score Materiality: 8% or 0.38 from baseline
Outcome 2: Aotearoa New Zealand's systems and institutions of executive government are trusted, effective and enhance our nation's reputation
Trust and confidence in government increases over baseline year (2019/20): 51 63 55 (first year of data 2021/22) 111	Four external surveys are assessed: Trust in the Public Service brand, Kiwis Count, Te Kawa Mataaho Public Service Commission Government at a Glance, Trust in Government, OECD Trust and satisfaction with public services, NZ country notes, OECD Public Sector Reputation Index, NEMA results, Kantar Public	Not on track - where the majority of surveys with available data shows a material decrease from those surveys' baseline score No change - where the balance between surveys with available data is equally materially up and down from those surveys' baseline score On track - where the majority of surveys with available data shows a material increase from those surveys' baseline score Materiality: 8% from baseline or first available year of data 4.08 5.08 4.40 8.88
Ministerial satisfaction with the systems and institutions of executive government is maintained or increases over baseline year (2019/20: 4.75)	The Prime Minister, on behalf of all Ministers satisfaction survey response.	Not on track - where the satisfaction score is less than the baseline score On track - where the satisfaction score meets or exceeds the baseline score Materiality: 8% or 0.38 from baseline
Governor-General satisfaction with support provided is maintained or increases over baseline year (2019/20: 4.00)	Two Governor-General satisfaction measures were averaged to determine the trend. These are satisfaction with advisory and constitutional services, and satisfaction with the programme and household services. This also provides an overall measure for the appropriation.	Not on track - where the average of the satisfaction scores is less than the baseline score On track - where the average of the satisfaction scores meets or exceeds the baseline score Materiality: 8% or 0.32 from baseline
Outcome 3: People living in Aotearoa New Zealand are, and feel, resilient, safe and secure
Ministerial satisfaction with leadership of the National Security and Emergency Management Systems is maintained or increases over baseline year (2019/20: 4.53)	Two Ministerial satisfaction survey responses were averaged to determine the trend.	Not on track - where the average of the satisfaction scores is less than the baseline score On track - where the average of the satisfaction scores meets or exceeds the baseline score Materiality: 8% or 0.36 from baseline
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 increases over baseline (2019/20: 68.66%).	NEMA's key priority is to ensure that people living in New Zealand are well-informed and able to respond to emergencies. Three NEMA community awareness and readiness surveys are averaged to determine the trend. This also provides an overall measure for the appropriation.	Not on track - where the average of the survey scores is less than the baseline score On track - where the average of the survey scores exceeds the baseline score No change - where the average of the survey scores has not changed from the baseline score Materiality: 8% or 5.49 from baseline

Appropriation statements#

Print this section

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

for the year ended 30 June 2023

	2022/23 Actual $000	2022/23 Budget $000	2022/23 Supp. Estimates $000	Where performance information is reported
DEPARTMENTAL OUTPUT EXPENSES
COVID-19 All of Government Response	15,103	37,990	18,325	Our performance reporting section
Cyber Security	3,451	2,000	3,725	Our performance reporting section
Extreme Weather Events All of Government Response	1,754	-	2,889	Our performance reporting section
Health and Disability System Reform	2,608	10,434	3,134	Our performance reporting section
TOTAL DEPARTMENTAL OUTPUT EXPENSES	22,916	50,424	28,073
DEPARTMENTAL CAPITAL EXPENDITURE
Department of the Prime Minister and Cabinet - Capital Expenditure PLA	560	308	1,000	Our performance reporting section
TOTAL DEPARTMENTAL CAPITAL EXPENDITURE	560	308	1,000
NON-DEPARTMENTAL OUTPUT EXPENSES
Centre of Excellence for Preventing and Countering Violent Extremism	1,325	1,325	1,325	Exempt under section 15D(2)(b)(iii) of the Public Finance Act 1989
TOTAL NON-DEPARTMENTAL OUTPUT EXPENSES	1,325	1,325	1,325
NON-DEPARTMENTAL OTHER EXPENSES
Extreme Weather Events - Regional and Local Support	-	-	5,000	Minister's Report appended to the DPMC Annual Report
Governor-General's Programme PLA	1,870	1,500	1,650	Exempt under section 15D(2)(b)(iii) of the Public Finance Act 1989
Governor-General's Salary and Allowance PLA	419	500	500	Exempt under section 15D(2)(b)(ii) of the Public Finance Act 1989
Governor-General's Travel Outside New Zealand PLA	240	407	407	Exempt under section 15D(2)(b)(iii) of the Public Finance Act 1989
Local Authority Emergency Expenses PLA	49,138	5,000	402,000	Minister's Report appended to the DPMC Annual Report
Remuneration of Commissioners of Intelligence Warrants PLA	83	174	174	Exempt under section 15D(2)(b)(ii) of the Public Finance Act 1989
TOTAL NON-DEPARTMENTAL OTHER EXPENSES	51,750	7,581	409,731
MULTI-CATEGORY EXPENSES AND CAPITAL EXPENDITURE
Advice and Support Services MCA
DEPARTMENTAL OUTPUT EXPENSES
Advice and Support to Government and the Governor- General	46,156	48,037	56,309	Our performance reporting section
NON-DEPARTMENTAL OTHER EXPENSES
Depreciation and Maintenance of Government House Buildings and Related Assets	2,328	2,232	2,762	Exempt under section 15D(2)(b)(ii) of the Public Finance Act 1989
Support for Prime Minister's Chief Science Advisor	795	795	795	Our performance reporting section
NON-DEPARTMENTAL CAPITAL EXPENDITURE
Government House - Capital Expenditure	401	550	1,200	Exempt under section 15D(2)(b)(iii) of the Public Finance Act 1989
TOTAL ADVICE AND SUPPORT SERVICES MCA	49,680	51,614	61,066
Emergency Management Leadership and Support MCA
DEPARTMENTAL OUTPUT EXPENSES
Advice and Support for Emergency Risk Reduction, Readiness, Response and Recovery	51,780	36,218	72,645	Our performance reporting section
NON-DEPARTMENTAL OTHER EXPENSES
Emergency Risk Reduction, Readiness, Response and Recovery	29,967	3,566	61,240	Exempt under section 15D(2)(b)(ii) of the Public Finance Act 1989
TOTAL EMERGENCY MANAGEMENT LEADERSHIP AND SUPPORT MCA	81,747	39,784	133,885
TOTAL MULTI-CATEGORY EXPENSES AND CAPITAL EXPENDITURE	131,427	91,398	194,951
TOTAL ANNUAL AND PERMANENT APPROPRIATIONS	207,978	151,036	635,080

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

Print this section

for the year ended 30 June 2023

The Department has not incurred any departmental or non-departmental expenses or capital expenditure without, or in excess of appropriation, or other authority (2022: Nil).

Reconciliation between total appropriations for Departmental expenses and the Departmental Statement of Comprehensive Revenue and Expenses#

Print this section

2021/22 Actual $000		2022/23 Actual $000
195,838	Total expenses in Departmental Statement of Comprehensive Revenue and Expenses	120,883
(30,278)	Administration and Use of Ministry of Health appropriation: National Response to COVID-19 Across the Health Sector Multi-Class Appropriation	(31)
(33)	Remeasurements	-
165,527	TOTAL APPROPRIATIONS FOR DEPARTMENTAL EXPENSES	120,852

Reconciliation between total appropriations for Non-departmental expenses and the Schedule of Non-departmental Expenses#

Print this section

2021/22 Actual $000		2022/23 Actual $000
27,638	Total expenses in Schedule of Non-departmental Expenses	88,815
(4,624)	GST Input expense	(2,650)
23,014	TOTAL APPROPRIATIONS FOR NON-DEPARTMENTAL EXPENSES	86,165

Reconciliation to Total Annual and Permanent Appropriations#

Print this section

2021/22 Actual $000		2022/23 Actual $000
165,527	Total Appropriations for Departmental Expenses	120,852
23,014	Total Appropriations for Non-departmental Expenses	86,165
734	Total Departmental Capital Expenditure	560
4,416	Total Non-departmental Capital Expenditure	401
193,691	TOTAL ANNUAL AND PERMANENT APPROPRIATIONS	207,978

Statement of Capital Injections#

Print this section

for the year ended 30 June 2023

2021/22 Actual $000		2022/23 Actual $000	2022/23 Budget $000	2022/23 Supp. Estimates $000
1,151	Capital Injection	208	208	208

Statement of Capital Injections without, or in excess of, Authority#

Print this section

for the year ended 30 June 2023

DPMC has not received any capital injections during the year without, or in excess of, authority (2022: Nil).

Reporting against our appropriations#

Print this section

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 2022/23	Result 2021/22	Result 2022/23	Achieved
The responsible Minister is satisfied with the policy advice service (see Note 1)	4	4.14	4	✔
Average score for assessed policy papers (see Note 2)	4	3.5	3.46	✗
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	Achieved	Partially Achieved	✗
The COVID-19 Chief Executives Board is satisfied with the leadership within the system (see Note 1)	4	5	5	✔

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.

How much it cost

2021/22 Actual $000		2022/23 Actual $000	2022/23 Budget $000	2022/23 Supp. Estimates $000
65,907	Revenue Crown	18,325	37,990	18,325
8,377	Revenue Other	-	-	-
74,284	TOTAL REVENUE	18,325	37,990	18,325
61,166	Expenses	15,103	37,990	18,325
13,118	Net Surplus/(Deficit)	3,222	-	-

Departmental expenditure was lower than original budget due to this function winding down during the year and being disestablished by 30 June 2023. Some functions, and related budget, were transferred to other agencies and some budget was reprioritised to support efforts to address misinformation and disinformation; to support the 2023 North Island extreme weather response; and to enable co-ordination and input to the Royal Commission of Inquiry into Lessons Learned from New Zealand's Response to COVID‑19 for Future Pandemics. Departmental expenditure was lower than the Supplementary Estimates mainly due to the remaining costs being below the forecast.

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 2022/23	Result 2021/22	Result 2022/23	Achieved
Delivery of the annual work programme as agreed by the Cyber Security Coordination Committee	Achieved	Partially Achieved	Partially Achieved	✗

How much it cost

2021/22 Actual $000		2022/23 Actual $000	2022/23 Budget $000	2022/23 Supp. Estimates $000
4,860	Revenue Crown	3,725	2,000	3,725
-	Revenue Other	-	-	-
4,860	TOTAL REVENUE	3,725	2,000	3,725
2,926	Expenses	3,451	2,000	3,725
1,934	Net Surplus/(Deficit)	274	-	-

Departmental expenditure was higher than originally budgeted due to contributions to some Cyber Security Strategy projects being supported by funding carried forward from 2021/22. 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 2022/23 planned initiatives for approved Cyber Security Strategy projects now being expected to occur in 2023/24.

Extreme Weather Events All of Government Response 

This appropriation is intended to achieve effective leadership and co-ordination of the government's response to the sequence of 2023 extreme weather events that impacted the North Island.

What we achieved

Performance measure	Target 2022/23	Result 2021/22	Result 2022/23	Achieved
The responsible Minister is satisfied with progress to establish the Cyclone Recovery Taskforce and Unit (see Note 1)	4	New Measure	3.75	✗

Note 1 - The 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 exceeded expectations.

How much it cost

2021/22 Actual $000		2022/23 Actual $000	2022/23 Budget $000	2022/23 Supp. Estimates $000
-	Revenue Crown	2,889	-	2,889
-	Revenue Other	-	-	-
-	TOTAL REVENUE	2,889	-	2,889
-	Expenses	1,754	-	2,889
-	Net Surplus/(Deficit)	1,135	-	-

Departmental expenditure for this new appropriation was lower than the Supplementary Estimates due to the full establishment of a new business unit to support this work taking longer than was initially anticipated.

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 2022/23	Result 2021/22	Result 2022/23	Achieved
The Minister of Health is satisfied with the policy advice service (see Note 1)	4	5	4	✔

Note 1 - The 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 exceeded expectations.

How much it cost

2021/22 Actual $000		2022/23 Actual $000	2022/23 Budget $000	2022/23 Supp. Estimates $000
27,427	Revenue Crown	3,134	10,434	3,134
27,427	TOTAL REVENUE	3,134	10,434	3,134
21,467	Expenses	2,608	10,434	3,134
5,960	Net Surplus/(Deficit)	526	-	-

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).

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 2022/23, expenditure was in accordance with the Department's approved capital asset management plan.

How much it cost

2021/22 Actual $000		2022/23 Actual $000	2022/23 Budget $000	2022/23 Supp. Estimates $000
734	Property, Plant and Equipment	560	258	950
-	Other	-	50	50
734	TOTAL EXPENSES	560	308	1,000

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 2022/23	Result 2021/22	Result 2022/23	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	4.7	4.50	✔
The Governor-General is satisfied with the services and support provided by the Department of the Prime Minister and Cabinet (see Note 1)	4	4.6	4.46	✔

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

2021/22 Actual $000		2022/223 Actual $000	2022/23 Budget $000	2022/23 Supp. Estimates $000
44,110	Revenue Crown	54,639	47,957	54,641
1,637	Revenue Dept	1,105	50	1,529
-	Revenue Other	161	30	139
45,747	TOTAL REVENUE	55,905	48,037	56,309
40,307	Departmental Expenses	46,156	48,037	56,309
5,440	Net Surplus/(Deficit)	9,749	-	-
2,550	Non-departmental Expenses	3,123	3,027	3,557
464	Non-departmental Capital Expenditure	401	550	1,200

Departmental expenditure was lower than originally budgeted mainly due to lower than anticipated expenditure for the COVID-19 Service recognition project, partially offset by unbudgeted third party funded activity for the Policy Project and expenditure related to funding carried forward from 2021/22. Budget for these items was included in baseline updates during the year. The underspend against the Supplementary Estimates was mainly due to lower than anticipated expenditure for the COVID-19 Service recognition project, and for initiatives to respond to disinformation which are expected to be completed in 2023/24.

Non-departmental expenditure was underspent against the Supplementary Estimates due to lower than anticipated spend for Government House planned maintenance and capital projects, some of which will continue into 2023/24.

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

This category is intended to provide policy advice to support decision-making by the Prime Minister and the Prime Minister and Cabinet and provide support services to the Prime Minister, Cabinet and its committees, the Executive Council and the Governor-General.

What we achieved

Performance measure	Target 2022/23	Result 2021/22	Result 2022/23	Achieved
Advice to Government
The Prime Minister is satisfied with the policy advice service (see Note 1)	4	4.8	5	✔
The Minister for Child Poverty Reduction is satisfied with the policy advice service (see Note 1)	4	4.9	4.76	✔
The Minister for the Digital Economy and Communications is satisfied with the policy advice service (see Note 1)	4	3.4	3.67	✗
The Minister for National Security and Intelligence is satisfied with the policy advice service (see Note 1)	4	4.6	4	✔
Average score for assessed policy papers (see Note 2)	4	3.5	3.46	✗
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	Achieved	Partially 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	3.9	4	✔
The Prime Minister is satisfied with the provision of intelligence assessments that support national security priorities (see Note 1)	4	4	4	✔
Average score of a sample of intelligence assessments reviewed by an external reviewer (see Note 3)	4	4.1	4.02	✔
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	4.75	3.38	✗
The Minister of Finance is satisfied with advice and support on priority government programmes and projects monitored by the Implementation Unit (see Note 1)	4	5	4	✔
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	4	✔
Cabinet and Cabinet committee minutes requiring subsequent amendment (excluding amendments made as the result of Cabinet decisions)	0.5%	0.5%	0.14%	✔
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%	93%	✔
Cabinet minutes will be published on CabNet by the close of business, three days after the Cabinet meeting	95%	96%	98%	✔
The Governor-General is satisfied with the advisory and constitutional services provided (see Note 1)	4	4.5	4.33	✔
The Governor-General is satisfied with the programme and household services provided (see Note 1)	4	4.7	4.58	✔

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.

Note 3 - Intelligence assessments were assessed on a scale of 1 to 5, where 1 means unacceptable and 5 means outstanding.

How much it cost

2021/22 Actual $000		2022/23 Actual $000	2022/23 Budget $000	2022/23 Supp. Estimates $000
44,110	Revenue Crown	54,639	47,957	54,641
1,637	Revenue Dept	1,105	50	1,529
-	Revenue Other	161	30	139
45,747	TOTAL REVENUE	55,905	48,037	56,309
40,307	Departmental Expenses	46,156	48,037	56,309
5,440	Net Surplus/(Deficit)	9,749	-	-

Category: Prime Minister's Chief Science Advisor Research Programme

This category is intended to achieve the provision of high-quality scientific advice to the Prime Minister.

What we achieved

Performance measure	Target 2022/23	Result 2021/22	Result 2022/23	Achieved
The Prime Minister is satisfied with the scientific advice provided (see Note 1)	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

2021/22 Actual $000		2022/23 Actual $000	2022/23 Budget $000	2022/23 Supp. Estimates $000
870	Expenses	795	795	795

Emergency Management Leadership and Support  

This appropriation is intended to achieve an all-hazards, all-risks emergency management system that reduces risk, and is ready and able to, and assist recovery from, emergencies.

What we achieved

Performance measure	Target 2022/23	Result 2021/22	Result 2022/23	Achieved
The National Emergency Management Agency maintains a positive public reputation index score (see Note 1)	At least 100	111	110	✔
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%	60%	61%	✗

Note 1 - The performance measure and standard has been adjusted to better reflect the methodology employed and to provide quantitative information on the level of performance.

How much it cost

2021/22 Actual $000		2022/23 Actual $000	2022/23 Budget $000	2022/23 Supp. Estimates $000
42,992	Revenue Crown	71,382	35,988	71,382
-	Revenue Dept	796	230	1,113
982	Revenue Other	68	-	150
43,974	TOTAL REVENUE	72,246	36,218	72,645
37,833	Departmental Expenses	51,780	36,218	72,645
6,141	Net Surplus/(Deficit)	20,466	-	-
8,584	Non-departmental Expenses	29,967	3,566	61,240
3,952	Non-departmental Capital Expenses	-	-	-

Departmental expenditure was higher than originally budgeted due to expenditure related to funding carried forward from 2021/22, unbudgeted third party funded activity for the Ministry of Foreign Affairs and Trade Partnership Programme and unbudgeted expenditure relating to the 2023 North Island extreme weather events. 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 and other initiatives such as National Crisis Management Centre Resilience and Emergency Mobile Alerting where some activities are to continue in 2023/24, and lower expenditure by the National Emergency Management Agency to support the 2023 North Island extreme weather events than was provided for in the new funding approved during the year for this purpose.

Non-departmental expenditure was higher than originally budgeted due to expenditure related to funding carried forward from 2021/22 for several emergency management initiatives and due to expenditure relating to support for communities impacted by the 2023 North Island extreme weather 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, including the 2023 North Island extreme weather events. These activities are expected to continue in 2023/24.

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

This category is intended to achieve the provision of 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 2022/23	Result 2021/22	Result 2022/23	Achieved
Community Awareness and Readiness
Percentage of New Zealanders who have taken action to prepare for an emergency in the last 12 months	50%	33%	43%	✗
Percentage of New Zealanders who know the correct action to take during an earthquake	67%	59%	64%	✗
Percentage of New Zealanders who know the correct action to take if they feel a long or strong earthquake near the coast	85%	87%	75%	✗
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 2)	6	8.4	7.4	✔
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	7.1	7.1	✔
Number of Tsunami Monitoring and Detection buoys maintained to minimum manufacturer's standard (see Note 3)	12	Revised Measure	12	✔
Management of Emergencies
Number of National Crisis Management Centre amalgamated corrective action plans reviewed (see Note 4)	4	4	2	✗
Policy Advice
The responsible Minister is satisfied with the emergency management policy advice service (see Note 5)	4	4.8	4.9	✔
Average score for assessed policy papers (see Note 6)	4	3.35	3.25	✗
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 6)	Achieved	Partially Achieved[13]	Partially Achieved	✗

Note 1 - Satisfaction with guidance and support to the CDEM sector is measured on a scale from 1-10, where 1 means has not met needs and 10 means exceeded needs.

Note 2 - Relevant publications are those found on the National Emergency Management Agency website https://www.civildefence.govt.nz/resources/publications.

Note 3 - This performance measure and standard have been adjusted to better reflect meaningful and quantitative information on the level of performance.

Note 4 - The National Emergency Management Agency Leadership team or an appropriate subcommittee reviews the amalgamated corrective actions plan at least four 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 5 - The Minister's 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 exceeded expectations.

Note 6 - 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.

How much it cost

2021/22 Actual $000		2022/23 Actual $000	2022/23 Budget $000	2022/23 Supp. Estimates $000
42,992	Revenue Crown	71,382	35,988	71,382
-	Revenue Dept	796	230	1,113
982	Revenue Other	68	-	150
43,974	TOTAL REVENUE	72,246	36,218	72,645
37,833	Departmental Expenses	51,780	36,218	72,645
6,141	Net Surplus/(Deficit)	20,466	-	-

Our financials | Tauāki pūtea#

Print this section

Statement of responsibility#

Print this section

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 2023 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 2024 and its operations for the year ending on that date.

Rebecca Kitteridge CVO
Te Tumu Whakarae mō Te Tari o te Pirimia me te Komiti Matua
Secretary of the Department of the Prime Minister and Cabinet, and Chief Executive

Date: 29 September 2023

Independent auditor's report#

Print this section

To the readers of the Department of the Prime Minister and Cabinet's annual report for the year ended 30 June 2023

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 72 to 86, that comprise the statement of financial position, statement of commitments, statement of contingent liabilities and contingent assets as at 30 June 2023, 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 for the appropriations administered by the Department for the year ended 30 June 2023 on pages 4 to 19, 46 to 48 and 52 to 64;
• the statements of expenses and capital expenditure of the Department for the year ended 30 June 2023 on pages 49 to 51; and
• the schedules of non-departmental activities which are managed by the Department on behalf of the Crown on pages 87 to 92 that comprise:
  • the schedules of assets; liabilities; commitments; and contingent liabilities and assets as at 30 June 2023;
  • the schedules of expenses; and revenue for the year ended 30 June 2023;
  • the statement of trust monies for the year ended 30 June 2023; and
  • the notes to the schedules that include accounting policies and other explanatory information.

Opinion

In our opinion:

• the financial statements of the Department:
  • present fairly, in all material respects:
    • its financial position as at 30 June 2023; 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 for the appropriations administered by the Department for the year ended 30 June 2023:
  • presents fairly, in all material respects:
    • what has been achieved with the appropriation; and
    • the actual expenses or capital expenditure incurred as compared with the expenses or capital expenditure that were appropriated or forecast to be incurred; and
  • complies with generally accepted accounting practice in New Zealand.
• the statements of expenses and capital expenditure of the Department are presented, 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 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 2023;
  • expenses; and revenue for the year ended 30 June 2023; and
  • the statement of trust monies for the year ended 30 June 2023.

Our audit was completed on 29 September 2023. 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 2022/23 and the 2022/23 forecast financial figures included in the Department's 2021/22 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 for the appropriations administered by the Department.
• 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 audited represents 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 2, 20 to 43, 66 and 94 to 97, 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 Minister for Cyclone Recovery 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 (including International Independence Standards) (New Zealand) (PES 1) 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#

Print this section

Statement of Comprehensive Revenue and Expenses

for the year ended 30 June 2023

2021/22 Actual $000		Note	2022/23 Actual $000	2022/23 Unaudited Budget $000	2023/24 Unaudited Forecast $000
	REVENUE
187,648	Revenue Crown		154,095	134,369	111,923
41,416	Other Revenue	2	2,161	310	310
229,064	TOTAL REVENUE		156,256	134,679	112,233
	EXPENSES
72,774	Personnel Costs	3	66,549	69,586	66,653
481	Depreciation and Amortisation Expense	6	405	801	1,424
555	Capital Charge	4	582	524	612
122,028	Other Operating Expenses	5	53,347	63,768	43,544
195,838	TOTAL EXPENDITURE		120,883	134,679	112,233
33,226	NET SURPLUS/(DEFICIT)		35,373	-	-
-	Other Comprehensive Revenue and Expenses		-	-	-
33,226	TOTAL COMPREHENSIVE REVENUE AND EXPENSES		35,373	-	-

Explanations of major variances against the original budget are provided in Note 11.
The accompanying notes and policies form part of these Financial Statements.

Statement of Changes in Equity#

Print this section

for the year ended 30 June 2023

2021/22 Actual $000		2022/23 Actual $000	2022/23 Unaudited Budget $000	2023/24 Unaudited Forecast $000
11,092	Balance at 1 July	11,640	11,640	11,848
33,226	Surplus for the Year	35,373	-	-
1,151	Capital Injection	208	208	2,860
(603)	Capital Withdrawal	-	-	-
(33,226)	Return of Operating Surplus to the Crown	(35,373)	-	-
11,640	BALANCE AT 30 JUNE	11,848	11,848	14,708

Explanations of major variances against the original budget are provided in Note 11.
The accompanying notes and policies form part of these Financial Statements.

Statement of Financial Position#

Print this section

as at 30 June 2023

2021/22 Actual $000		Note	2022/23 Actual $000	2022/23 Unaudited Budget $000	2023/24 Unaudited Forecast $000
	ASSETS
	CURRENT ASSETS
18,102	Cash and Cash Equivalents		5,958	14,858	19,155
387	Other Financial Assets		-	-	-
35,556	Debtor Crown		63,719	12,214	9,055
10,645	Debtors and Other Receivables		550	500	500
48	Prepayments		154	-	-
289	Inventory		307	199	199
65,027	TOTAL CURRENT ASSETS		70,688	27,771	28,909
	NON-CURRENT ASSETS
48	Intangible Assets	6	29	-	14
1,401	Property, Plant and Equipment	6	1,504	1,515	3,223
1,449	TOTAL NON-CURRENT ASSETS		1,533	1,515	3,237
66,476	TOTAL ASSETS		72,221	29,286	32,146
	LIABILITIES
	CURRENT LIABILITIES
16,699	Creditors and Other Payables	7	18,903	14,506	14,506
33,226	Provision for Repayment of Surplus		35,373	-	-
4,568	Employee Entitlements	8	5,715	2,632	2,632
54,493	TOTAL CURRENT LIABILITIES		59,991	17,138	17,138
	NON-CURRENT LIABILITIES
343	Employee Entitlements	8	382	300	300
343	TOTAL NON-CURRENT LIABILITIES		382	300	300
54,836	TOTAL LIABILITIES		60,373	17,438	17,438
11,640	NET ASSETS		11,848	11,848	14,708
	EQUITY
11,640	Taxpayers' Funds		11,848	11,848	14,708
11,640	TOTAL EQUITY		11,848	11,848	14,708

Explanations of major variances against the original budget are provided in Note 11.
The accompanying notes and policies form part of these Financial Statements.

Statement of Cash Flows#

Print this section

for the year ended 30 June 2023

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

2021/22 Actual $000		2022/23 Actual $000	2022/23 Unaudited Budget $000	2023/24 Unaudited Forecast $000
	CASH FLOWS FROM OPERATING ACTIVITIES
188,091	Receipts from the Crown	125,932	134,369	111,923
42,260	Receipts from Other Revenue	10,969	310	310
(118,336)	Payments to Suppliers	(57,192)	(63,986)	(43,626)
(72,333)	Payments to Employees	(65,323)	(69,368)	(66,571)
(555)	Payments for Capital Charge	(582)	(524)	(612)
(4,998)	Goods and Services Tax (net)	7,624	-	-
34,129	NET CASH FLOWS FROM OPERATING ACTIVITIES	21,428	801	1,424
	CASH FLOWS FROM INVESTING ACTIVITIES
295	Receipts from Sale of Property, Plant, and Equipment	6	-	-
(734)	Purchase of Property, Plant and Equipment	(560)	(308)	(2,960)
-	Purchase of Intangible Assets	-	-	-
(439)	NET CASH FLOWS FROM INVESTING ACTIVITIES	(554)	(308)	(2,960)
	CASH FLOWS FROM FINANCING ACTIVITIES
(29,929)	Repayment of Net Surplus to the Crown	(33,226)	-	-
1,151	Capital Contribution	208	208	2,860
(603)	Capital Withdrawal	-	-	-
(29,381)	NET CASH FROM FINANCING ACTIVITIES	(33,018)	208	2,860
4,309	Net Increase/(Decrease) in Cash and Cash Equivalent	(12,144)	701	1,324
13,793	Cash and Bank Balances at the Beginning of the Year	18,102	14,157	17,831
18,102	CASH AND BANK BALANCES AT YEAR END	5,958	14,858	19,155

Explanations of major variances against the original budget are provided in Note 11.
The accompanying notes and policies form part of these Financial Statements.

Statement of Commitments#

Print this section

as at 30 June 2023

Capital commitment

At 30 June 2023, the Department has no capital commitments (2022: 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.

2021/22 Actual $000		2022/23 Actual $000
	OPERATING COMMITMENTS
	NON-CANCELLABLE OPERATING LEASE COMMITMENTS
1,643	No later than one year	698
649	Later than one year and not later than 5 years	172
425	Later than five years	391
2,717	TOTAL NON-CANCELLABLE OPERATING LEASE COMMITMENTS	1,261

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

Statement of Contingent Liabilities and Contingent Assets#

Print this section

as at 30 June 2023

Contingent liabilities

At 30 June 2023 there were two legal matters, one of which is pending decisions by the Court, which could give rise to liabilities to DPMC. These amounts are unquantifiable at 30 June 2023, and no provision has been made (2022: Three).

Contingent assets

At 30 June 2023, the Department has no contingent assets (2022: 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 2023

1.  Statement of Accounting Policies

Reporting entity

The Department of the Prime Minister and Cabinet (‛the Department') is a New Zealand government department 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 practices (GAAP).

The financial statements of the Department are for the year ended 30 June 2023 and were approved for issue by the Chief Executive on 29 September 2023.

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 a 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

The Department applied for the first-time certain standards and amendments which were effective for the year ending 30 June 2023. The following amendments or accounting policy changes occurred during 2023:

New or amended standards adopted

• PBE IPSAS 41 Financial Instruments
  In March 2019, the External Reporting Board (XRB) issued PBE IPSAS 41 Financial Instruments, which supersedes both PBE IFRS 9 Financial Instruments and PBE IPSAS 29 Financial Instruments: Recognition and Measurement. The Department has adopted PBE IPSAS 41 for the first time this year. There has been little change as a result of adopting the new standard because the requirements are similar to those contained in PBE IFRS 9.

• PBE FRS 48 Service Performance Reporting
  This Standard establishes new requirements for the selection and presentation of service performance information. The Department has adopted PBE FRS 48. The main change between PBE FRS 48 and PBE IPSAS 1 Presentation of Financial Statements is that PBE FRS 48 requires additional information to be disclosed on the judgements that have the most significant effect on the selection, measurement, aggregation, and presentation of service performance information. This is disclosed in Section 2 of the Annual Report.

Other changes in accounting policies

There have been no other 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:

2022 Omnibus Amendment to PBE Standards

This Standard has been issued to amend the relevant Tier 1 and Tier 2 PBE Standards as a result of:

• PBE IPSAS 17 Property, Plant and Equipment: The amendments change the accounting for any net proceeds earned while bringing an asset into use by requiring the proceeds and relevant costs to be recognised in surplus or deficit rather than being deducted from the asset cost recognised; and
• PBE IPSAS 19 Provisions, Contingent Liabilities and Contingent Assets: The amendments clarify the costs of fulfilling a contract that an entity includes when assessing whether a contract will be loss-making or onerous (and therefore whether a provision needs to be recognised).

The changes are for financial statements covering periods beginning on or after 1 January 2023.

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 13 Property, Plant and Equipment) and the Non-departmental provisions for emergencies (see Note 14 Provisions). For Departmental assets and liabilities, this is the measurement of long service and retirement leave (see Note 8).

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 overleaf.

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 Bills for the financial year. The amount of revenue recognised takes into account any amendments to appropriations approved in the Appropriation (Supplementary Estimates) Bill 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 2023 budget figures are consistent with the Department's best estimate financial forecast information submitted to the Treasury for the 2022 Budget Economic and Fiscal Update (BEFU) for the year ending 30 June 2023.

The 2024 forecast figures are for the year ending 30 June 2024, which are consistent with the best estimate financial forecast information submitted to the Treasury for the 2023 BEFU for the year ending 30 June 2024.

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 2024 forecast figures have been prepared in accordance with and comply with PBE FRS 42 Prospective Financial Statements.

Prospective Financial Statements

The forecast financial statements were approved for issue by the Chief Executive on 5 April 2023.

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 2024 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 2023/24 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 5 April 2023 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; and
• 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 2024 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 2023/24 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; and
• indirect costs are expenses incurred 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

2021/22 Actual $000		2022/23 Actual $000
40,994	Revenue Department - Other Government Agencies[14]	1,929
422	Third Party - Other Revenue	232
41,416	TOTAL OTHER REVENUE AND GAINS	2,161

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.

2021/22 Actual $000		2022/23 Actual $000
67,898	Salaries and Wages	62,261
1,732	Employer Contributions to Defined-Contribution Plans	1,766
956	Increase/(Decrease) in Employee Entitlements	998
2,188	Other[15]	1,524
72,774	TOTAL PERSONNEL COSTS	66,549

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 2023 was 5% (2022: 5%).

5. Other Operating Expenses

2021/22 Actual $000		2022/23 Actual $000	2022/23 Unaudited Budget $000	2023/24 Unaudited Forecast $000
11,287	Shared Services	12,445	11,287	11,251
21,116	Consultancy	8,418	4,549	3,305
-	Tsunami Monitoring and Detection Network Maintenance	6,306	4,269	6,050
2,032	Grants & Sponsorship	5,561	711	3,518
69,179	COVID-19 Advertising Costs	5,401	12,120	-
4,264	Premises Rental	3,894	5,784	3,930
1,252	Travel Costs	3,128	2,506	2,959
2,024	IT-related Costs	2,035	1,490	713
2,149	Promotion and Publicity Costs	977	706	1,033
671	Building and Ground Maintenance Costs	672	650	645
382	Cell Phone and Telephone	453	284	292
298	Facilities Costs	346	264	338
790	Photocopying and Printing Costs	327	724	233
122	Audit Fees for Audit of Financial Statements	123	111	128
-	Net loss on Disposal of Property, Plant and Equipment	43	-	-
6,462	Other Operating Expenses	3,218	18,313	9,149
122,028	TOTAL OTHER OPERATING COSTS	53,347	63,768	43,544

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 2021	1,033	29	183	2,220	3,465	4,839
Additions	266	-	-	468	734	-
Disposals	-	-	-	(536)	(536)	-
Transfers	-	-	(127)	253	126	(126)
Other Movements	-	-	-	-	-	-
BALANCE AT 30 JUNE 2022	1,299	29	56	2,405	3,789	4,713
Additions	110	44	490	136	780	-
Disposals	(443)	(29)	-	(429)	(901)	-
Transfers	9	-	(333)	324	-	-
Other Movements	-	-	-	20	20	-
BALANCE AT 30 JUNE 2023	975	44	213	2,456	3,688	4,713
ACCUMULATED DEPRECIATION AND IMPAIRMENT LOSSES
Balance at 1 July 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
Depreciation Expense	104	10	-	272	386	19
Disposals	(394)	(29)	-	(418)	(841)	-
Other Movements	-	6	-	245	251	-
BALANCE AT 30 JUNE 2023	500	3	-	1,681	2,184	4,684
CARRYING VALUE
At 1 July 2021	329	21	183	742	1,275	216
At 30 June 2022	509	13	56	823	1,401	48
At 30 June 2023	475	41	213	775	1,504	29

7. Creditors and Other Payables

2021/22 Actual $000		2022/23 Actual $000
11,290	Accrued Expenses	10,114
5,409	Payables	2,367
-	GST Payable to Inland Revenue	6,422
16,699	TOTAL CREDITORS AND OTHER PAYABLES	18,903

8. 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.

2021/22 Actual $000		2022/23 Actual $000
	CURRENT EMPLOYEE ENTITLEMENTS
3,094	Annual Leave	4,003
1,135	Salary Accrual	1,323
134	Long Service Leave	160
99	Other Employee Benefits	99
95	Sick Leave	118
11	Retirement Leave	12
4,568	TOTAL CURRENT LIABILITIES	5,715
	NON-CURRENT EMPLOYEE ENTITLEMENTS
243	Long Service Leave	277
100	Retirement Leave	105
343	TOTAL NON-CURRENT LIABILITIES	382
4,911	TOTAL EMPLOYEE ENTITLEMENTS	6,097

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 table of risk-free discount rates and Consumer Price Index assumptions provided by the Treasury to all departments.

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

2021/22 Actual $000		2022/23 Actual $000
33,226	NET SURPLUS (DEFICIT)	35,373
	ADD/(LESS) NON-CASH ITEMS
481	Depreciation and Amortisation	405
481	TOTAL NON-CASH ITEMS	405
	ADD/(LESS) WORKING CAPITAL MOVEMENT
1,569	(Increase)/Decrease in Receivables and Prepayments	(19,352)
22	(Increase)/Decrease in Inventories	(18)
3,281	Increase/(Decrease) in Creditors and Other Payables	(4,180)
(4,998)	Increase/(Decrease) in GST	7,606
(21)	Increase/(Decrease) in Provisions	-
1,067	Increase/(Decrease) in Employee Entitlements	1,125
920	TOTAL NET MOVEMENT IN WORKING CAPITAL ITEMS	(14,819)
(111)	Add/(Less) Movements in Non-current Liabilities	39
	ADD/(LESS) ITEMS CLASSIFIED AS INVESTING OR FINANCING ACTIVITIES
-	(Gain)/losses on disposal of property, plant, and equipment	43
(33)	Foreign Exchange (Gain)/losses on asset	-
(354)	Other Financial Asset	387
34,129	NET CASH FLOWS FROM OPERATING ACTIVITIES	21,428

10. 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 Executive Leadership Team Board, including the Chief Executive]

2021/22 Actual $000		2022/23 Actual $000
2,742	Remuneration	3,203
7	Full-time Equivalent Staff	8

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, not 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 (2022: Nil).

11. Explanations of Major Variances Against Budget

Explanations for major variances between the Department's original 2022/23 budget figures and the 2022/23 year actuals are as follows:

Revenue

Revenue was higher than budgeted by $21.577 million due to decisions made since the 2022/23 Budget.

These mainly relate to:

• increased funding due to transfers from the prior year for DART Buoys Maintenance, COVID-19 All of Government Response, several Emergency Management initiatives, Child and Youth Wellbeing and Cyber Security ($13.688 million);
• new Crown funding approved for 2023 North Island Extreme Weather Events, Alternative National Crisis Management Centre, Christchurch Call, Public Sector Pay Adjustment and Prime Minister's Special Envoy ($18.631 million); and
• contributions from other departments including contributions to the Policy Project ($1.376 million).

This was offset by transfers to Vote Health for COVID-19 response functions and activities associated with the health and disability system reforms ($11.158 million).

Expenditure

Expenditure was lower than budgeted by $13.796 million mostly due to:

• underspends in COVID-19 All of Government Response, and Health and Disability System Reform functions due to these being wound down and disestablished during the year, with some functions transferred to other agencies ($29.482 million); and
• lower spend for the COVID-19 Service recognition award ($2.939 million).

Offsetting the lower expenditure was higher expenditure relating to funding approved since Budget 2022, including:

• advisory, security, disinformation, third-party funded activities and other costs ($8.239 million);
• response to the 2023 North Island extreme weather events ($6.867 million); and
• support and maintenance of the Tsunami monitoring and detection network ($3.372 million).

Balance sheet

Total assets exceeded the 2022/23 Budget by $42.935 million mainly due to a larger debtor Crown balance than expected as operating expenditure was lower than anticipated in the 2022/23 Supplementary Estimates and higher amounts received from debtors than assumed in the 2022/23 Supplementary Estimates resulted in lower cash drawn from the Crown and a higher year end Crown revenue receivable. Mostly offsetting this, total liabilities exceeded 2022/23 budget by $42.935 million reflecting provision for repayment of the 2022/23 operating surplus ($35.373 million) and higher accounts payable and employee entitlements provision than assumed in the initial budget ($7.562 million).

Cash flow

Receipts from other departments exceeded budget by $10.659 million due to a higher level of receivables at the end of the previous financial year than anticipated, net GST recovered exceeded budget by $7.624 million and payments to suppliers and employees were lower than budget by $10.839 million.

This was offset by repayment of the previous year surplus ($33.226 million) while the budget assumed no surplus.

12. 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#

Print this section

Schedule of Non-departmental Expenses

for the year ended 30 June 2023

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

2021/22 Actual $000		2022/23 Actual $000	2022/23 Unaudited Budget $000
14,751	Grants and Contributions	34,486	8,509
2,628	Increase to Provisions for emergency events	44,707	-
2,903	Depreciation	3,121	3,489
2,732	Other Operating Costs	3,851	3,501
4,624	Goods and Services Tax	2,650	1,989
27,638	TOTAL NON-DEPARTMENTAL EXPENSES	88,815	17,488

 

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

Schedule of Non-departmental Revenue and Receipts

for the year ended 30 June 2023

2021/22 Actual $000		2022/23 Actual $000	2022/23 Unaudited Budget $000
5,216	Other Revenue	8,371	3,873
46	Gain on sale of non-financial assets	-	-
5,262	TOTAL NON-DEPARTMENTAL REVENUE AND RECEIPTS	8,371	3,873

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

Schedule of Non-departmental Assets and Liabilities

as at 30 June 2023

2021/22 Actual $000		Note	2022/23 Actual $000	2022/23 Unaudited Budget $000
	ASSETS
	CURRENT ASSETS
24,337	Cash in Bank		8,971	24,556
155	Debtors and Other Receivables		11	3,370
-	Other Financial Assets		-	-
24,492	TOTAL CURRENT ASSETS		8,982	27,926
	NON-CURRENT ASSETS
189,270	Land, Property, Plant and Equipment	13	167,395	181,829
189,270	TOTAL NON-CURRENT ASSETS		167,395	181,829
213,762	TOTAL NON-DEPARTMENTAL ASSETS		176,377	209,755
	LIABILITIES
	CURRENT LIABILITIES
1,788	Creditors and Other Payables		15,317	10,642
19,246	Provision - Emergency Expenses	14	59,591	500
21,034	TOTAL CURRENT LIABILITIES		74,908	11,142
	REVALUATION RESERVES
105,809	Property Revaluation Reserves		86,652	105,809
105,809	TOTAL REVALUATION RESERVES		86,652	105,809

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

Schedule of Non-departmental Commitments

as at 30 June 2023

As at 30 June 2023, there are no operating commitments in Vote Prime Minister and Cabinet (2022: Nil).

As at 30 June 2023, there are no capital commitments in Vote Prime Minister and Cabinet (2022: Nil).

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

Schedule of Non-departmental Contingent Liabilities and Contingent Assets

as at 30 June 2023

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 2023.

Contingent liabilities - quantifiable

As at 30 June 2023, there are no quantifiable contingent liabilities (2022: Nil).

Contingent assets - quantifiable

As at 30 June 2023, there are no quantifiable contingent assets (2022: 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 2023, there were 9 events (2022: 12) from which we expect to receive claims for reimbursement from local authorities for welfare, response and recovery costs. The most significant emergency events for which a contingent liability exists are the 2021 and 2022 flooding events that impacted the West Coast and Nelson/Marlborough and the January - March 2023 North Island extreme weather events.

A provision of $59.591 million has been made for costs that have been quantified for these and other emergency events (see Note 14) (2022: $19.246 million).

Contingent assets - unquantifiable

As at 30 June 2023, there are no unquantifiable contingent assets (2022: Nil).

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

Statement of Trust Monies

for the year ended 30 June 2023

For the year ended 30 June 2023, DPMC did not operate any trust account under section 66 of the PFA.

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

Notes to the Non-departmental financial schedules#

Print this section

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.

13. 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 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)
Transfers	-	-	16	3,080	(3,096)	-	-
Other Movements	-	389	-	-	-	-	389
Revaluation	-	-	-	-	-	-	-
BALANCE AT 30 JUNE 2022	108,078	58,993	4,399	21,639	373	2,318	195,800
Additions	-	1	76	13	283	32	405
Disposals	-	-	-	-	-	(109)	(109)
Transfers	-	6	10	270	(345)	59	-
Other Movements	-	-	(41)	(5)	-	(360)	(406)
Revaluation	(26,530)	5,971	-	-	-	-	(20,559)
BALANCE AT 30 JUNE 2023	81,548	64,971	4,444	21,917	311	1,940	175,131
ACCUMULATED DEPRECIATION AND IMPAIRMENT LOSSES
BALANCE AT 1 JULY 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
Depreciation Expense	-	786	-	2,219	-	116	3,121
Disposals	-	-	-	-	-	(109)	(109)
Other Movements	-	-	-	-	-	(242)	(242)
Revaluation write back	-	(1,564)	-	-	-	-	(1,564)
BALANCE AT 30 JUNE 2023	-	-	-	6,292	-	1,444	7,736
CARRYING VALUE
At 1 July 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
At 30 June 2023	81,548	64,971	4,444	15,625	311	496	167,395

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
All Other Assets	4-10 years

Revaluations

Government House land and buildings in Auckland and Wellington were revalued to fair values as at 30 June 2023 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 titles 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; and
• within the Auckland property, 2.25 hectares is marked as Natural Resources Significant Ecological Areas which restricts how this area is used.

A total of 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 revaluation of the asset class is brought forward.

14. Provisions

	Emergency Expenses $000
Balance at 1 July 2022	19,246
Additional Provision Recognised - New events	37,467
Payments Made During the Year/Provision Used for the Year	(4,362)
Changes to Provision - Previous events	7,240
Balance at 30 June 2023	59,591
Current Portion of the Provision	59,591

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 wastewater, storm-water and potable water infrastructure 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:

• $20.414 million for Marlborough/Nelson Flooding in August 2022
• $17.053 million for the North Island Severe Weather Events in January/February 2023
• $6.962 million for Marlborough flooding in July 2021
• $5.198 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
• $3.550 million for Ashburton/Canterbury flooding in May/June 2021
• $2.484 million for estimated costs associated with cyclones Debbie and Cook in the Bay of Plenty region in April 2017
• $2.403 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
• $0.934 million for Southland Flooding in February 2020
• $0.399 million for Whanganui flooding in June 2015, and
• $0.194 million for West Coast flooding in February 2022.

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.

15. Events after the Balance Date

There are no events after the balance date of 30 June 2023 (2022: Nil).

16. Impact of COVID-19

The COVID-19 All-of-Government Response Group established in DPMC in July 2020 transferred most functions to health agencies during 2022/23 and was disestablished by 30 June 2023. A new unit was established in DPMC during 2023 to enable all-of-government coordination and DPMC input to the Royal Commission into Lessons Learned from Aotearoa New Zealand's Response to COVID-19 that should be Applied in Preparation for any Future Pandemic.

Appendices | Ngā āpitihanga#

Print this section

This section includes:

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

Cabinet Office statistics#

Print this section

for the year ended 30 June 2023

	2022/23 Actual	2021/22 Actual	2020/21 Actual
Meetings
Executive Council	45	45	33
Cabinet	45	50[16]	52[16]
Cabinet committees	185	176	115
Submissions
Summary cover sheets to Cabinet and Cabinet committee papers	1,735	1,556	1,083
Submissions lodged by Ministers' offices by the Cabinet Office deadline	81%	73%	61%
Papers published by the close of business, two days before the meeting	93%	96%	96%
Cabinet and Cabinet committee minutes
Cabinet and Cabinet committee minutes[16]	2,096	1,964	1,520
Cabinet and Cabinet committee minutes requiring an amendment by the Cabinet Office[17]	3	10	2
Cabinet minutes published by the close of business, three days after the Cabinet meeting	98%	96%	99%
Other Services
Cabinet Office circulars	7	2	9
Briefing seminars to departments, Ministers' offices and other interested parties on the Cabinet decision-making process	33	20	20
Enquiries and requests from Ministers' offices and departments about Cabinet papers and related information	119	86	141

Cabinet and Cabinet committee meeting statistics#

Print this section

for the year ended 30 June 2023

	Number of Meetings	Number of Agenda Items	Average Number of Items per Meeting
Executive Council	45[18]	301	7
Cabinet	45	388	9
Cabinet committee meetings
Cabinet Appointments and Honours Committee	27	359	13
Cabinet Business Committee	8	29	4
Cabinet Economic Development Committee	28	267	9
Cabinet Environment, Energy and Climate Committee	13	72	5
Cabinet External Relations and Security Committee	14	81	6
Cabinet Extreme Weather Recovery Committee[19]	10	46	5
Cabinet Government Administration and Expenditure Review Committee	10	55	5
Cabinet Legislation Committee	28	228	8
Cabinet Māori Crown Relations: Te Arawhiti Committee	9	32	3
Cabinet Priorities Committee	10	36	4
Cabinet Social Wellbeing Committee	28	205	7
TOTAL CABINET COMMITTEE MEETINGS	185	1,410	8

New Zealand Royal Honours#

Print this section

for the year ended 30 June 2023

The Order of New Zealand
Additional Member	1
The New Zealand Order of Merit
Dame Grand Companion	1
Dame Companion	6
Knight Companion	6
Companion	27
Officer	78
Member	132
Honorary Officer	2
Honorary Member	2
The Queen's Service Order
Companion	4
The Queen's Service Medal	95
Honorary Queen's Service Medal	4
New Zealand Bravery Awards
The New Zealand Bravery Star	1
The New Zealand Bravery Decoration	6
The New Zealand Bravery Medal	1
The New Zealand Antarctic Medal
The New Zealand Antarctic Medal	1
The New Zealand Distinguished Service Decoration
The New Zealand Distinguished Service Decoration	6
TOTAL	373
Other honours and appointments
Grant of the title “The Right Honourable” for life	2
Grant of the title “The Honourable” for life	11
TOTAL	386

Areas of contribution for the New Year and the King's Birthday and Coronation 2023 Honours Lists recipients

Area of contribution	Female	Male	Total
Arts and Media	30	16	46
Business and the Economy	7	12	19
Community, Voluntary and Local Services	62	71	133
Education	21	16	37
Health	32	24	56
Science and Technology	3	11	14
Services to the State	8	12	20
Sport and Recreation	19	21	40
Total	182	183	365

Ethnicity of the New Year and the King's Birthday and Coronation 2023 Honours Lists recipients

Ethnicity	Female	Male	Total	% of Lists
New Zealand European / European	95	100	195	53%
Māori	35	32	67	18%
Pacific Peoples	23	18	41	11%
Asian	7	9	16	4%
Middle Eastern / Latin America / African	3	1	4	1%
Unspecified	19	23	42	12%
Total	182	183	365

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

Print this section

This report meets the requirement, set in the Vote Prime Minister and Cabinet Supplementary Estimates of Appropriations for 2022/23, for information on a Non-departmental Appropriation to be reported by the Minister for Cyclone Recovery.

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 2022/23.

Extreme Weather - Regional and Local Support#

Print this section

This appropriation is intended to provide funding to be administered by Regional and Local Recovery Structures to support recovery from the sequence of 2023 North Island weather events.

What we achieved

Performance measure	Target 2022/23	Result 2021/22	Result 2022/23	Achieved
Payments to support recovery efforts are made in accordance with criteria (see Note 1)	100%	New Measure	Not Applicable - No payments were made in 2022/23	-

Note 1 - This is a new appropriation. This performance measure was selected based on similar measures of performance used in other appropriations administered by the Department for similar bodies and provides sufficient and quantifiable information on the level of performance.

How much it cost

2021/22 Actual $000		2022/23 Actual $000	2022/23 Budget $000	2022/23 Supp. Estimates $000
-	Expenses	-	-	5,000

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

Print this section

This report meets the requirement, set in the Vote Prime Minister and Cabinet Estimates of Appropriations and Supplementary Estimates of Appropriations for 2022/23, for information on a Non-departmental Appropriation 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 2022/23.

Local Authority Emergency Expenses PLA#

Print this section

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 2022/23	Result 2021/22	Result 2022/23	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

2021/22 Actual $000		2022/23 Actual $000	2022/23 Budget $000	2022/23 Supp. Estimates $000
8,808	Expenses	49,138	5,000	402,000