Annual Report 2024

Chief Executive's foreword#

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Kupu whakataki a te Tumu Whakarae

Kia ora koutou

The Department of the Prime Minister and Cabinet (DPMC) has a unique and important purpose.

We apply our whole-of-government perspective, skills, specialist expertise and leadership across the public sector to enable the Governor-General, the Prime Minister and Cabinet to lead and govern New Zealand.

We also do this with other agencies, civil society, and communities to build a stronger, more secure nation through our national security, and national risk and resilience activity.

The DPMC Annual Report 2023/24 is an opportunity to be held accountable for our work, while providing insights into the impact of what we do and how we operate.

During 2023/24, two Prime Ministers and two governments have been able to move quickly to deliver on their work programmes with our support. Significant examples in the past 12 months – also an election year – include the Cabinet Office’s work providing procedural and constitutional advice in the pre- and post-election periods for the 2023 General Election. After the election, the development and delivery of the Prime Minister and Cabinet’s 100-Day Plan initiatives and Targets were supported by DPMC insights, advice and coordination.

Like many organisations and for many people across New Zealand, DPMC operates in an environment of change. For us it is part of our DNA and operating effectively is built into our ways of working. We draw on these skills to move quickly when the country needs to deal with unusual or extraordinary events.

For the communities impacted from Cyclone Gabrielle, this has meant a more coordinated and effective response to their evolving challenges through our support to the Chief Executive, Cyclone Recovery and the Cyclone Gabrielle Recovery Taskforce.

New Zealand continues to strengthen its national security approach and systems through the first ever National Security Strategy guiding New Zealand’s approach to national security threats, released in August 2023. DPMC also concluded its role coordinating implementation of the Government response to the report of the Royal Commission of Inquiry into the Terrorist Attack on Christchurch Mosques on 15 March 2019.

During the year we made some changes to ensure that we’re set up to deliver for the Government and for New Zealand. We separated our national security functions from our wider resilience ones to ensure a focus on both. We successfully transitioned the Child Wellbeing and Poverty Reduction Group to its new home within the Ministry of Social Development where it can continue its work within the wider social sector.

Government House supported the Governor-General to deliver her ceremonial, constitutional and community role. This year our role included supporting the Governor-General during the change of administration, the swearing in of the new administration and the delivery of the Speech from the Throne.

In April 2024, I had the privilege of taking over the reins of DPMC as Chief Executive. I want to acknowledge and thank Rebecca Kitteridge CVO, for her role leading and shepherding DPMC through the majority of 2023/24.

I would like to also recognise the wisdom, commitment and leadership of the former Chief Executive, Dr Brook Barrington, who has been appointed to the role of Secretary of Defence.

I want to thank our people for the way they have navigated this, and other change over the past year.

While DPMC will continue to evolve, what won’t change is the value our people bring to their work, and the critical role each of them plays in our success and delivering on DPMC’s purpose. I am looking forward to continuing to build an environment within DPMC where our people are valued, empowered and engaged, and continue to deliver for the government of the day.

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

Our story#

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Te kōrero

Our strategic intentions#

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He takunetanga rautaki

Who we are and what we do#

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Ko wai mātou, he aha ā mātou mahi

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

At the Department of the Prime Minister and Cabinet (DPMC) Te Tari o te Pirimia me te Komiti Matua, we support 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 a central agency, we play a vital role in leading and coordinating public service agencies. We are uniquely placed to draw together and focus other public sector agencies to support the Government's priorities and to address effectively with issues and delivery of agreed programmes and policies.

Our functions and services are adapting to meet evolving needs and expectations, while our core purpose and enduring roles remain unchanged.

Our enduring roles which help us deliver on our purpose

Supporting informed decision-making

We provide the Prime Minister, Ministers and Cabinet with intelligence, advice, support and brokerage on the business of the day. We provide strategic advice, taking a comprehensive all-of-government view to assist the Government shape its agenda. Our advice aims to achieve alignment and greater momentum across the public sector. Additionally, we are responsible for shaping and progressing critical emerging issues.

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, the response to the Royal Commission of Inquiry into the terrorist attack on Christchurch mosques on 15 March 2019, Emergency Management and Recovery, Infrastructure, and the Christ Church Cathedral Reinstatement Act. Through the National Emergency Management Agency (NEMA) Te Rākau Whakamarumaru, we provide advice to the Minister for Emergency Management and Recovery.

Supporting well-conducted government

We support the Governor-General, Prime Minister and Ministers to exercise their constitutional roles. We ensure the smooth, lawful and trustworthy running of executive government through the provision of secretariat services, constitutional advice and support, legislative support and administration of the New Zealand Royal Honours system.

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 and Emergency Management Systems

We lead and steward the New Zealand security and intelligence sector in strengthening national resilience, developing situational understanding and improving coordination and collaboration on nationally significant issues. We support the Prime Minister in international engagements and are focused on advancing New Zealand's international interests. We also, through NEMA, lead and coordinate across the emergency management system to reduce risk, and enable the system and communities to be ready for and able to respond to and recover from emergencies.

At the system level, this includes supporting the National Risk Framework, strategic and administrative governance support to the Chief Executive-level boards (National Security Board and National Hazards Board), and stewardship and leadership to the country's all-of-government strategic crisis management arrangements. It involves supporting the Officials' Committee for Domestic and External Security Coordination (ODESC) in a crisis.

Our year at a glance#

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Te tau kua hipa

Outcome 1: The Government is supported to shape and deliver its priorities#

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What we intended to achieve

DPMC is part of the glue that holds our system of government together and the oil that makes it run smoothly. We are uniquely placed at the centre, applying our whole-of-government perspective and our proximity to Ministers to steward the system of Government decision-making.

We play a pivotal role in shaping strategic policy priorities for the Government. DPMC also ensures the public service is aligned with, and gets traction on, delivery of Government targets.

Ministers require timely, well-informed, free and frank advice from a proactive and responsive public service. We are committed to lifting policy quality and capability across the public sector. Our targeted learning opportunities and ongoing guidance aim to build a high-performing policy system.

With a keen eye to the future, we support agencies in their stewardship role through the development of their Long-term Insights Briefings.

Like other policy agencies, DPMC also has a role in providing functional delivery and first-opinion policy advice. This includes a number of time-limited functions such as addressing wellbeing and poverty reduction for children and young people, and recovery from the North Island severe weather events, as well as in our enduring role in national security, risk and resilience.

What we achieved in 2023/24

Provided effective oversight and support for significant Government priorities

Supported the Government to achieve its policy priorities

We provided the Prime Minister of the day with free and frank policy advice on all government priorities and matters of interest across all portfolios.

In 2023/24, we provided tracking against the Government's 100-day plan and policy advice on progress to support the Prime Minister in his role as the chair of the 100-Day Committee and Cabinet. The 100-Day Plan had 49 commitments across three areas: rebuilding the economy and easing the cost of living; restoring law and order; and delivering better public services.

Implementation Unit completed its work

The Implementation Unit conducted in-depth analysis on Government priority projects by identifying early and emerging issues that were potential barriers to a successful delivery. In 2023/24, three reports were completed: Rapid Assessment of Nga Tini Whetū (a whānau-centred early support prototype), Stocktake of New Zealand Defence Force Workforce Retention initiatives, and Stocktake of Progress of Whaikaha (Ministry for Disabled People).

The Implementation Unit completed its work and was wound up on 7 April 2024 having published 28 in-depth reports since 2020.

Delivery Unit established

We established the Delivery Unit on 8 April 2024 to support the planning and delivery of the Government's key priorities. This included reporting on the progress and achievement of the Quarterly Government Action Plan. We provided advice to the Prime Minister and Cabinet, keeping them informed on progress made on the deliverables, and on the Nine Government Targets.

We provided guidance to public sector agencies responsible for the delivery of Government priorities, including system level insights and identifying common issues that need to be addressed and risks that need to be mitigated.

Lifted policy quality and capability across the public sector

Providing high-quality policy advice that supports the Government to make informed decisions is a key role of the public sector. DPMC's Policy Project supports the Head of the Policy Profession to build a high-performing policy system.

The Policy Project works at a system level and with individual agencies and policy professionals. We provide tools and resources that help agencies build their capability to provide high-quality advice and works closely with agencies to support their use. This year we delivered 71 workshops to 22 agencies across a range of topics including good commissioning, intervention logic, and risk analysis. 1,729 policy practitioners participated in the project's policy improvement workshops which aim to build policy capability.

Across policy agencies, the overall quality of policy advice was good. This was indicated by a majority of policy briefings being assessed as acceptable (ie, achieving a minimum score of 3 out of 5). Over the past three years scores show more briefings meeting the average score of 3, with fewer achieving higher scores of 4 or above.

Proactive and responsive public service, helping shape and deliver the Government's priorities

Supported strategic long-term insights

The New Zealand Public Service has a duty of stewardship, to look ahead and provide advice on future challenges and opportunities. This requires us to think, anticipate, and act in the future interests of people in New Zealand. To achieve this, the Public Service Act 2020 requires departmental chief executives to publish a Long-term Insights Briefing (Briefing) at least once every three years.

DPMC supports this process through providing guidance and coordination. In 2023/24, 19 briefings were published by agencies on a range of topics including demographic change and its implications, public participation in government, wellbeing, data, and land use. This process has included a strong focus on agencies working together across portfolios and engaging with communities and stakeholders to ensure improving outcomes is front and centre of our advice and action.

Supporting the Government to make New Zealand the best place in the world for children and young people

The vision of the Child and Youth Wellbeing Strategy (Strategy) is that New Zealand is the best place in the world for children and young people. While the majority of children and young people in New Zealand are doing well, not all children and young people are having the same positive experiences.

The high cost of living is providing challenges for many families and we can see the impact of this in many of the indicators we measure. Looking at changes over time, we have seen a mix of some positive progress and some areas where outcomes are worsening. We can see some positive emerging trends, with more young people making positive choices and some incidences of harm against children and young people decreasing. After a period of statistically significant improvement, we have seen worsening outcomes on some measures of child poverty.

Improving child wellbeing and reducing child poverty has wide-ranging and long-term benefits for all New Zealanders. It requires a strategic and coordinated approach which is led by the Minister for Child Poverty Reduction supported in their role by the Child Wellbeing and Poverty Reduction Group (Group).

The Group's role is a leadership one focused on achieving improved outcomes for children and young people and on the system as a whole. To do this it has a strong focus on supporting informed decision-making and action through effective governance, monitoring performance, providing advice on the things likely to have the most impact, and influencing action across the system.

For most of this year, the Group was located in DPMC before being successfully transitioned to the Ministry of Social Development on 25 April 2024. During the year, the Group supported the system to work more effectively by:

• strengthening the governance of the system so that it is focused on the things that make a difference to child wellbeing and poverty reduction
• streamlining reporting to make it more accessible to those who need to use it to inform their decision‑making
• providing advice on achieving the three- and ten-year child poverty targets, and
• supporting the new Government on opportunities provided by the Strategy and Child Poverty Reduction legislative frameworks.

Measuring our progress

This outcome is about supporting informed decision-making and supporting the Government to deliver its priorities.

At an agency level, we achieve this through the advice we provide and the work we do with ministers and agencies across the system to help shape and drive the Government’s priorities. While the decisions that are made are the preserve of others (eg, Ministers and Cabinet), we measure our success through the quality of the advice we provide and the satisfaction of our ministers in our support for them.

Our performance this year against these measures is summarised in the table below which shows that:

• Policy quality – we achieved 3.4 (acceptable) out of 5 (outstanding) for the quality of our policy advice. This is lower than our target of 4 (good) and lower than our score last year. Reversing this trend and improving the quality of our advice is a priority for us in 2024/25.
• Ministerial satisfaction – we achieved 4.2 (expectations met most of the time) out of 5 (expectations always met) which was the same result as last year. This shows we have maintained similar levels of advice and service throughout the change in Government.

At a system level, we support the head of the policy profession and agencies across the system to build the capability needed to provide high-quality advice to their Ministers and Cabinet. While we are not accountable for the policy quality of these agencies, we measure our success in relation to the use of the tools and support we provide.

Our performance this year against these measures is summarised in the table below which shows that:

• Uptake of Policy Project tools and frameworks – a high percentage of agencies are using the Policy Project’s frameworks, however, only half have developed a capability development plan.

Indicator	Desired trend	Baseline 2022/23	Progress 2023/24	Agency contributing to this outcome
Quality of policy advice and assessments	↑	3.6	3.4	DPMC and NEMA
Prime Minister and Ministerial satisfaction with advice and servicing	→ or ↑	4.2	4.2	DPMC and NEMA
Uptake of Policy Project tools and frameworks in support of improving policy quality across the public sector	→ or ↑	See below[1]		DPMC
Percentage of agencies with a policy function that have a capability building improvement plan		-	50%
Number of agencies with a policy function using the Policy Skills Framework		-	85.2%
Number of agencies with a policy function using the Policy Capability Framework		-	89.3%

Key to the indicators: ↑ Increase → Maintain

The way in which we measure these indicators is set out on page 50.

Outcome 2: New Zealand's system and institutions of executive government are trusted, effective and enhance our nation's interests#

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What we intended to achieve

DPMC supports the Governor-General, Prime Minister and Ministers to exercise their constitutional roles. We ensure the smooth, lawful and trustworthy running of executive government through our support services. This is central to DPMC's role in stewarding the system of Government decision-making.

DPMC manages an effective Cabinet system, supporting the conduct of government business during elections, and facilitating the smooth transfer of power between administrations.

We ensure the Governor-General receives comprehensive support to fulfil her ceremonial, constitutional, and community roles. This includes managing heritage buildings and grounds of the Auckland and Wellington residences, and visitor services.

Public awareness of the New Zealand Royal Honours system and its administration contributes to confidence in the way significant contributions from New Zealanders is recognised.

Functional responsibilities that contribute to maintaining public confidence in New Zealand's systems and institutions of executive government include providing governance and all-of-government strategic crisis management across national security, and broader national risk and resilience activities, and our community engagement in the development of policy advice. Our time-limited responsibilities include coordinating New Zealand's response to the national security implications of disinformation by raising public understanding of disinformation to strengthen resilience to disinformation, while protecting freedom of expression, and our community engagement in delivery of cyclone recovery and resilience initiatives.

What we achieved in 2023/24

Provided procedural and constitutional advice in the pre- and post-election periods to the Governor-General, the government, and the public service

In 2023/24, we supported the Governor-General, the Prime Minister and Ministers, and the public sector on matters that arose during the election and government formation periods. This contributed to maintaining confidence in New Zealand's institutions of executive government.

For the 2023 General Election, we collaborated with the Electoral Commission and the Office of the Clerk on the legal requirements and ceremonial aspects of the dissolution of Parliament, including issuing of the writ for the General Election. We informed and assisted the Governor-General to ensure she was well-informed of her constitutional responsibilities. We also provided advice to public sector agencies and the former Prime Minister and Ministers on a range of queries on government decision-making both during the pre‑election and caretaker periods to ensure decisions were made appropriately.

In November 2023, following the appointment of the new Government, we supported the Prime Minister and Ministers in their roles by providing induction briefings covering Cabinet, policy, legislation, accountability processes and the New Zealand Honours system.

We supported the incoming Prime Minister in establishing the processes of the new government, including providing advice as required on the structure and organisation of Cabinet and its committees, and the allocation of portfolios.

We also arranged and conducted the swearing-in ceremony for the new government. This ceremony was live-streamed on the Governor-General's website to enable full public access to this significant constitutional event.

Increased public awareness of the New Zealand Royal Honours system

The Queen's Service Order and Queen's Service Medal have been pillars of the New Zealand Royal Honours system since they were established in 1975, with large numbers of the Medal having been awarded across New Zealand for local voluntary community service.

In May 2023, Cabinet agreed to rename these honours as ‘The King's Service Order and King's Service Medal' to acknowledge and honour the King. New insignia for the Order was designed to include the effigy of the King. The first appointments were announced in June 2024, as part of the King's Birthday Honours List 2024.

The Governor-General holds investiture ceremonies at Government House for people named in Honours Lists. During a five-day visit in June 2024 to Hawke's Bay and Tāirawhiti communities severely impacted by Cyclone Gabrielle, Dame Cindy Kiro undertook two special investiture ceremonies in Ruatoria and Tolaga Bay for Ngāti Porou leader, Sir Selwyn Parata, KNZM and Eruera Kaiwai, QSM respectively, who are leading efforts to build resilience and self-reliance amongst communities in Tāirawhiti.

Identified and addressed mistrust of, and disinformation about, New Zealand’s systems and institutions of executive government

Strengthening resilience to disinformation

In 2023/24, DPMC worked with individuals and organisations to deliver initiatives aimed at building awareness of disinformation in New Zealand and strengthening resilience to its harms. This time-bound work led us to support the building of a lasting, publicly available evidence base. The three key initiatives, we supported were:

• Civil society-led advice on strengthening resilience to disinformation - a multi-stakeholder group, drawn from business, technology, academic, legal, community, and media backgrounds, made recommendations to DPMC about ways to strengthen resilience to disinformation, while protecting freedom of expression.
• Support for capacity-building and community resilience - DPMC partnered with Internet NZ Ipurangi Aotearoa to deliver a one-off fund for community-based initiatives that develop domestic expertise and support education and community outreach. Fourteen initiatives were funded, many focused-on education and awareness and increasing digital information literacy.
• Public research and insights into disinformation - Independent research was commissioned over 2023/24 from Hate and Extremism Insights Aotearoa and Logically, a United Kingdom-based technology company. The work programme provides a publicly available evidence base to better understand the challenges of disinformation here in New Zealand and to strengthen future resilience.

These initiatives contributed to identifying and addressing mistrust of, and disinformation about, New Zealand's systems and institutions and increasing resilience to disinformation across New Zealand society.

Engaged meaningfully with communities and others we work with

Response to the report of the Royal Commission of Inquiry into the Terrorist Attack on Christchurch Mosques on 15 March 2019 (RCOI)

Enhanced community engagement and strong stakeholder relationships have been a vital part of the coordinated response to the recommendations of the RCOI. Government agencies have regularly engaged with community groups and representatives on the RCOI response as well as on wider national security matters.

Addressing shared national security challenges: New Zealand and our Pacific partners

We worked with Pacific Islands Forum countries to tackle shared national security challenges and promote a secure, safe, and resilient Pacific region. In supporting commitments made in the Forum's Boe Declaration on Regional Security, in 2023/24, we worked with Pacific countries to develop national security strategies, improve cyber security and infrastructure resilience and strengthen information sharing.

Key achievements during 2023/24 include:

• exchanged national security insights with the majority of Pacific Islands Forum countries, and
• supported the Government of Niue to develop its first National Security Strategy.

Supported building trust and confidence in government agencies

Coordinated all-of-government crisis management through ODESC

The Officials' Committee for Domestic and External Security Coordination (ODESC) system is New Zealand's all-hazards, all-threats strategic crisis management system. The system guides 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.

The Prime Minister is the lead decision maker in the ODESC system, supported by the Secretary of DPMC as Chair. We supported all-of-government coordinated decision-making through convening the ODESC system.

Effective responses to crises builds trust and confidence in government agencies. This is because those affected the most experience the results of cross-agency collaboration through clear communication, rapid resolution and mitigation of impacts.

In 2023/24, the ODESC system was activated in response to a number of matters including:

• civil unrest in New Caledonia to ensure the safe departures for New Zealanders and international partners' citizens
• Israel/Hamas conflict to consider risks arising to security
• El Niño summer season to ensure readiness for potential concurrent events, and
• continuing support for the safe release of the New Zealand citizen being held hostage in Papua.

Additionally, we led preparations to deliver safe and secure major events including FIFA 2023 Women's World Cup and the 2023 General Election.

Coordinated input to Royal Commission into COVID-19 Lessons Learned

DPMC's time-limited All-of-Government function coordinated provision of all-of-government information into the Royal Commission of Inquiry into Lessons Learned from Aotearoa New Zealand’s Response to COVID-19 That Should Be Applied in Preparation for a Future Pandemic. We reduced the risk of duplication of effort, gaps, and high transaction costs in relation to all-of-government information. This contributes to building public trust and confidence in the information available to the Royal Commission.

Measuring our progress

This outcome is about supporting trust and confidence in government.

Public trust and confidence in government is enhanced if our constitutional structures work well and are seen to do so, and if government agencies engage effectively with communities and stakeholders in policy making so that those who are affected by a decision or interested in an issue are involved in policy development.

We support executive government and the Governor-General to fulfil their roles through the provision of advice and support. We measure our success in relation to this by their satisfaction with the advice and support we provide. We engage with communities and stakeholders to inform our policy advice in a way that builds trust and confidence.

Our performance this year against these measures is summarised in the table below which shows that:

• Ministerial satisfaction - we achieved 5 out of 5 (expectations always met) which was the same result as last year. This shows we have maintained similar levels of satisfaction with systems and institutions of executive government throughout the change in Government.
• Governor-General Satisfaction - we achieved a rating of 4.2 (expectations met most of the time) out of 5 (expectations always met) from the Governor‑General in relation to the support we provide her. This is similar to last year's score.
• Engagement that builds trust and confidence - this is a new measure which is under development. The intervention logic proposed that if community engagement complied with the Policy Quality Framework and that communities received feedback from the engagement, it would have the effect of building their trust and confidence in government. Initial discussions with business units conducting engagement identified methodological challenges in identifying the policy making impacts arising from community engagement that would need to be resolved.

Indicator	Desired trend	Baseline 2022/23	Progress 2023/24	Agency contributing to this outcome
Ministerial satisfaction with the systems and institutions of executive government	→ or ↑	5.0	5.0	DPMC
Governor-General satisfaction with support provided	→ or ↑	4.5	4.2	DPMC
Our community engagement builds trust and confidence in government	→ or ↑	Indicator under development	Indicator under development	DPMC and NEMA

Key to the indicators: → Increase ↑ Maintain

The way in which we measure these indicators is set out on page 50.

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

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What we intended to achieve

DPMC has a functional role to steward and lead the all-hazards, all-threats national resilience system to strengthen New Zealand's resilience to our most serious hazards and threats. Given the range of complex national risks facing New Zealand, strategic leadership in reduction, readiness, response and recovery ensures there is effective management across government of national risks. This includes supporting the National Hazards Board and National Security Board in their governance and oversight of New Zealand's national security risks.

We lead, coordinate and support the national security community (which form the national security system) to safeguard New Zealand's national security interests. We support the Prime Minister in international engagements and advancing our international interests.

NEMA, our departmental agency, leads and coordinates across the Emergency Management system to reduce risk, and enable the systems and communities to be ready for, able to respond to and recover from emergencies.

Our time-limited responsibilities include hosting the functional Chief Executive, Cyclone Recovery to provide national-level leadership and cross-government coordination for recovery from the 2023 North Island weather events.

DPMC ensures that the Government's response to risks and building resilience across these systems is effective, connected and aligned, building confidence in the systems and greater capacity to respond.

What we achieved in 2023/24

Strategic leadership of the National Security and Emergency Management Systems

Implemented the National Security Strategy

New Zealand's first National Security Strategy was launched on 3 August 2023. It sets a vision for a secure and resilient New Zealand - one that is protected as a free, open, and democratic society for future generations.

The Strategy established three clear priorities for the National Security System:

• acting early - using the intelligence, foreign policy, defence tools to prevent national security threats and build New Zealand's resilience
• collaborating across New Zealand and with international partners to foster collective understanding, and
• leading an integrated approach with clear leadership, coordinated intelligence, policy advice, and a system-wide approach to national security capabilities development.

Less than one year into its two-year establishment phase, the Strategy has shaped system-wide efforts to build more mature information for the refreshed National Security Board, canvassing the complexities, challenges and milestones, across core national security issues.

Updated National Security Intelligence Priorities

The updated National Security Intelligence Priorities were released in August 2023, alongside the National Security Strategy. The 14 National Security Intelligence Priorities cover a range of actual and potential threats and risks to New Zealand's national security. They support intelligence and assessment agencies to prioritise effort and add value to decision-making.

We led the development and implementation of the updated priorities, in close consultation with government agencies that produce intelligence, assessment and reporting to support decision-making on national security. Public engagement on our national security strategy and national security long-term insights briefing helped to inform the development of the priorities.

Aligned national security and broader national risk functions with the future needs of the system

In 2023/24, DPMC restructured its national security and risk function. This followed the report of the Royal Commission of Inquiry into the Terrorist Attack on Christchurch Mosques on 15 March 2019 and an internal review focused on aligning with the future needs of the system. The restructure created two groups:

• The National Security Group which leads the national security community through the provision of advice on strategy and policy, 'all source' assessments on events and developments affecting New Zealand's security interests, and strategic system coordination on specific core national security issues.
• The Risk and Systems Governance Group which stewards and leads the all-hazards, all-threats national resilience system, the National Risk and Resilience Framework and the all-of-government strategic crisis management arrangements. As part of this, the Group provides strategic governance support to the Chief Executive-level boards (National Security Board and National Hazards Board).

More comprehensive approach to managing risk

Development of the National Risk and Resilience Framework

New Zealand is exposed to a range of risks that have the potential to significantly impact the safety and livelihoods of people and communities, and cause disruption and damage to the things we value. New Zealand has a high exposure to many of these risks, particularly natural hazards. It is important that we are resilient to these risks.

Being more resilient requires a targeted and proactive approach. With this in mind, DPMC has led work this year to update and strengthen the National Risk and Resilience Framework. This work will continue in the coming year. Through this work we aim to support informed and proactive decision-making across government that builds New Zealand's resilience to the most significant hazards and national security threats we face.

Contribution to New Zealanders being confident and secure online

Strengthened cyber security

Strengthening New Zealand's cyber security strength and resilience in an increasingly complex threat environment is a priority across government. Cyber attacks are among the top three national security threats of concern to New Zealanders.

We are the lead policy agency for cyber security, working alongside the Government Communications Security Bureau as the operational lead. In 2023/24, we focussed on policy initiatives that will strengthen our national cyber capability and resilience.

Key achievements for 2023/24 include:

• supporting the integration of the CERT[2] into the National Cyber Security Centre, which will improve the coordination of cyber incident reporting and response through the consolidation of agencies with these functions
• continuing efforts to promote rules and norms on the internet including through attributions of unacceptable state behaviour alongside partners, which are intended to deter malign actors
• playing a key role in negotiations for the United Nations Cybercrime Convention that establishes a harmonised, modern and effective global framework for cooperation and coordination between states to tackle the growing threat posed by cybercrime to individuals, business and governments, and
• coordinating and funding cross-agency projects that support building New Zealand's cyber security capability, which allow agencies to progress system-wide gaps such as funding research projects that span a variety of agencies.

Christchurch Call transferred to new non‑governmental organisation

The Christchurch Call is a series of voluntary commitments that bring Governments, technology companies and civil society together, with the common goal of eliminating terrorist and violent extremist content online.

We improved online safety by reducing the likelihood of users encountering terrorist and violent extremist content through the following interventions:

• enhancing the terms of use of technology platforms
• improving user reporting mechanisms
• more use of digital fingerprinting and artificial intelligence tools to monitor online content
• establishing better controls on live streaming, and
• increasing reporting on ways terrorist content is identified and removed.

Key achievements during 2023/24 include:

• 25 commitments made by governments and online service providers to eliminate terrorist and extremist content online. The multistakeholder community included 56 governments, 19 online service providers, 13 partner organisations, and more than 50 civil society organisations, and
• in response to the Leaders' Summit in 2023, the Crisis response protocol was improved to include the response to the online content generated in the Israel/Gaza conflict, impacting individuals, communities, and societies globally.

As planned, the Government stepped back from its role in the Christchurch Call with New Zealand taxpayer funding for the Call ending on 30 June 2024. The Christchurch Call supported the establishment of a new legal non-government entity, the Christchurch Call Foundation launched on 14 May 2024.

The Foundation received pledges from members of the Call Community and philanthropic donors and its Secretariat commenced on 1 July 2024.

Worked with local and central government, iwi and other partners to understand, enable, empower and support community resilience

Countering foreign interference

Foreign interference (activity intended to influence, disrupt or subvert another country's interests by corruptive, deceptive or threatening means) is a core issue in New Zealand's national security strategy. Understanding the risks of foreign interference helps empower and equip groups and individuals to better manage their exposure. We partnered with other agencies to engage with exposed sectors of our economy and society to build a general understanding of foreign interference in New Zealand; raise awareness of the risks to which certain sectors may be exposed; and provide support where required to strengthen resilience to its harms.

The high-level impact of this work improves detection, disruption and deterrence of this harmful activity. Through this work we have helped organisations to better understand and therefore identify and manage the risks of foreign interference, and we have supported them to avoid specific attempts at interference that would have significantly damaged New Zealand's national interest.

Critical Infrastructure Resilience

Events like Cyclone Gabrielle highlight how interdependent New Zealand's infrastructure is. Disruptions in one sector can rapidly cascade to affect the entire system. Ensuring the resilience of critical infrastructure, such as electricity, telecommunications, transport, and finance, is crucial during various crises.

Consistent with leading global practice and New Zealand’s first Infrastructure Strategy and National Adaptation Plan, DPMC is leading the work to design a targeted set of requirements to bring the entire critical infrastructure system to a common baseline level of resilience. This is expected to reduce the risk of outages cascading within and across sectors.

Options are informed by widespread consultation undertaken throughout 2023 and 2024 with asset owners, local government, iwi and Māori, academics, and individual New Zealanders. This included town-hall style meetings in Auckland, Wellington, Christchurch and online as well as targeted engagements with industry, local government and communities that have been affected by extreme weather and other national hazards.

Public Survey

We released the second National Security Public Survey to increase our understanding of New Zealanders' perceptions of significant hazards and national security threats. The survey results, which are available on our website, provide insights into public confidence in government agencies' abilities to protect and respond to National Risks, help identify opportunities to build confidence, share information, and better engage.

Supported the Government to enable New Zealand to respond and recover from nationally-impactful events

Emergency Management System Improvement Project

In April 2024, DPMC established the Emergency Management System Improvement Project (the Project) to ensure New Zealand's emergency management system is capable of responding to major emergencies that impact multiple regions at once. The Project is providing advice to the Minister for Emergency Management and Recovery in 2024/25. It will set the direction for the emergency management system over five years by providing advice on choices to prioritise resources to achieve the changes we need in the system. The Project will also deliver advice on a response to the recommendations in the North Island Severe Weather Event Inquiry.

Cyclone recovery efforts

The functional Chief Executive, Cyclone Recovery (CE, CR) is responsible for leading and coordinating the Government's recovery programme from the early 2023 North Island weather events[3]. The CE, CR is supported by DPMC through the Cyclone Recovery Unit (CRU), a temporary unit funded until 30 June 2025.

We supported the CE, CR's strategic oversight and coordination of the policy work programme working with multiple agencies and the affected regions. The affected regions were Northland, Auckland, Waikato, Thames-Coromandel, Tairāwhiti, the Hawke's Bay, Tararua, and Masterton. The regions with the most significant impacts and the largest recovery needs are Auckland, Tairāwhiti and Hawke's Bay.

In the first year of cyclone recovery, we supported the CE, CR to lead central government's implementation of the Future of Severely Affected Locations (FOSAL) programme. Local authorities led on designing and delivering FOSAL categorisation policies and voluntary buyout scheme. Local authorities also led on identifying, planning and delivering interventions for flood and landslide risk mitigation and priority local transport projects. The CE, CR provides support to councils as they deliver these interventions to ensure the policy intent of the FOSAL programme is maintained and provides monitoring and assurance for the Crown’s financial support.

We also supported the CE, CR to lead the Whenua Māori and Marae Pathway of FOSAL following categorisation of whenua Māori and Marae by local authorities. This involves working directly with whenua Māori landowners and residents on Category 3 land to provide a support package to enable people to move out of harm's way.

Key achievements for 2023/24 include:

• eight councils were supported to increase capacity and capability to support a locally-led recovery effort including funding for governance, iwi partnership and recovery staff
• supported the Crown to enter into funding agreements with local authorities in Hawke's Bay, Tairāwhiti and Auckland to share costs of Category 3 property buyouts, flood protection and regional transport projects and involving $1.6 billion of Crown funding
• worked with other North Island weather events affected regions who were invited to enter into funding agreements with the Crown for the buyout of Category 3 properties, including entering a funding agreement with Masterton District Council
• engaged Crown Infrastructure Partners for a period of five years to support and review project delivery plans, disperse funds according to agreed milestones and monitor councils to deliver on recovery initiatives
• 14 Project Delivery Plans approved for local transport projects and Category 2 flood risk mitigation infrastructure projects across Auckland, Hawke's Bay and Tairāwhiti
• 35 projects across 15 councils co-funded under the Local Government Flood Resilience Co-Investment Fund. The projects include stopbanks to mitigate future flood risk, proactive management of climate-exacerbated flood risk, early warning equipment and system, raising homes, wastewater resilience, culvert upgrades, river mouth clearing, storm-damaged tree removal and slip stabilisation
• 18 Orders in Council (OIC) developed under the Severe Weather Emergency Recovery Legislation Act 2023. Through CRU, we assisted with the development of OICs by coordinating the delivery of the OICs through Cabinet, ensuring they meet the necessary legal tests and providing secretariat functions for the Regulation Review Panel.

The ministerial advisory group, the Cyclone Gabrielle Recovery Taskforce, supported initial recovery efforts to ensure local, iwi, and business voices have input into decision-making. The Taskforce provided advice to Ministers on aligning elements of the locally led and centrally enabled recovery and the prioritisation and sequencing of recovery needs. It was wound down, together with the CRU-based secretariat, with responsibilities transferred to the CRU in February 2024.

Measuring our progress

This outcome is about ensuring that people living in New Zealand are, and feel, resilient, safe and secure.

Our contribution to this outcome relates to our leadership of the national security, national resilience, and emergency management systems through DPMC and NEMA. When these systems are working well, risks and threats are identified and managed so that issues are avoided or at least their impact minimised, the system is ready and able to respond if an emergency occurs, and our response works well for the people and communities impacted at the time and in recovery.

These systems are made up of many central and local agencies as well as communities themselves. Our role is to support those leading and working in these systems, as well as those who are impacted by them, to do what they need to do. We do this in a range of ways including the development of advice and working across the system to support the agencies and communities.

We measure success through asking those we work with about their satisfaction with the advice and services we provide. We also measure public confidence in government agencies to deal with national security threats and emergencies, and the preparedness of New Zealanders in the event of an emergency.

Our performance this year against these measures is summarised in the table below which shows that:

• Public confidence – this measure is sitting at 50 percent which is similar to last year and lower than what we aspire to achieve.
• Ministerial Satisfaction – we achieved 4 (expectations met most of the time) out of 5 (expectations always met) which was a decrease from last year. This shows we have further work to do to improve satisfaction with leadership of the National Security and Emergency Management Systems.
• Satisfaction of the agencies we work with – we achieved a rating of 3.8 (expectations met about half of the time) out of 5 (expectations always met) from the Chief Executives of the agencies that make up the National Security Board who provide leadership to the national security system. The increase in the score this year reflects the role of the National Security Strategy in providing a guiding framework for the sector, and changes made to our national security and risk functions (page 19). While we have seen an increase in this score there is more to do to increase this further.
• Readiness in New Zealand communities – we have seen an increase in the knowledge of correct action to take during a long or strong earthquake near the coast, although overall preparedness has dropped. Results in these areas are linked to the occurrence of emergency events, as well as promotional activities over which we have more control.

Indicator	Desired trend	Baseline 2022/23	Progress 2023/24	Agency contributing to this outcome
Public confidence in government agencies to deal with national security threats and emergencies	→ or ↑	53%	50%	DPMC and NEMA
Ministerial satisfaction with leadership of the National Security and Emergency Management Systems	→ or ↑	4.5	4	DPMC and NEMA
National security agencies are satisfied with the leadership of the national security system	↑	3.3	3.8	DPMC
New Zealanders who:[4]
have taken action to prepare for an emergency in the last 12 months	↑	43%	38%	NEMA
know the correct action to take during an earthquake and during a long or strong earthquake near the coast	↑	64%	73%	NEMA

Key to the indicators: ↑ Increase, → Maintain

The way in which we measure these indicators is set out on page 51.

Outcome: An influential, agile, high‑performing organisation in which our people feel empowered, valued and engaged#

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DPMC advances an ambitious, resilient and well-governed New Zealand. To achieve this we require an influential, agile, high-performing organisation in which our people feel empowered, valued and engaged.

We want our workforce (ohu mahi) to reflect the diversity of New Zealand. Every person needs to be culturally competent, so we can engage respectfully with our diverse local and global communities of interest.

The way in which we work needs to value the diversity of people, thought, approach and experience. Being inclusive in how we engage with one another means our people feel they belong both to our community and many others, they can be themselves at work, speak up safely and contribute. This enhances our performance and delivery impact.

Contemporary, responsive and future‑focused way of working (tāera mahi)

As a trusted and effective central agency delivering on new and emerging government priorities and risks we need to be a responsive, scalable, learning organisation. We require an effective operating model, flexible systems and policies which empower our people to deliver at pace.

During the year we worked closely with other central agencies to lead the public service and deliver results for New Zealanders. We contributed to the Government's fiscal sustainability programme, reduced our greenhouse gas emissions and began the process to review our operating model and baseline so that it is fit-for-purpose and transparently costed.

We supported transitions of functions out of DPMC and stood up a new Delivery Unit. These have provided an opportunity to refine our systems and policies so that these remain effective. Our move of most of our Wellington-based people into new premises provided an opportunity to reflect on our ways of working and to make important adjustments to policies and procedures.

Positive and safe work environment (wāhi mahi)

Positive and safe workplaces improve wellbeing, productivity and performance. We aim to be inclusive so our people feel they belong and can be themselves at work, speak up safely and contribute.

Our aspiration for our people is that they:

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

Our business units have shared internal priorities that focus on:

• improving our te ao Māori capability (including te reo Māori and Whāinga Amorangi actions), and
• foster a positive and inclusive wāhi mahi (work environment).

We actively support our staff-led networks and provide access to those within the wider public service.

DPMC and NEMA each have a Diversity, Equity and Inclusion Plan (DEI plan) originally developed following discussions with our employee-led networks, staff workshops, all-staff and people leaders' hui, and workshops with Executive Leadership Teams. Initially separate plans for Diversity and Inclusion, and Kia Toipoto were developed. Our DEI plans incorporate our intentions to deliver our these and our Papa Pounamu commitments. These DEI plans are available on our website www.dpmc.govt.nz/publications.

Gender balanced leadership[5]

Women occupied 67 percent of all leader roles (33 of 49) and 72 percent of T2 and T3. This is similar to last year.

Gender pay gap

Our gender pay gap improved by 4.1 percentage points over the final quarter of reporting to 30 June 2024 due to a number of senior male staff exiting DPMC and a number of senior female staff joining.

Our gender pay gap for permanent staff improved from 16 percent to 9.1 percent in the last year. This result relates to more women being recruited in higher grades.

Skilled, energised and high‑performing workforce (ohu mahi)

We need our workforce of permanent, fixed term and seconded public servants to be equipped with the skills and capabilities they need to be leading policy practitioners, and able to engage meaningfully with our diverse communities and stakeholders.

We continued our focus on building our capability to engage effectively with diverse communities and with Māori as we develop policy and advice for Ministers. Our internal policy quality working group continued to drive ways to lift the performance of our policy quality to achieve our ambitious targets. People leaders are key to supporting growth and development of our people. During the year we developed a 90-day survey to support our new starters. This enabled better understanding of their experiences and challenges. It also provided a way to better connect them with their people leaders and enhanced our induction programme.

Our people

*Further information on our workforce is available in our DEI plan on our website www.dpmc.govt.nz/publications.

Measuring our progress

The table below sets out the indicators we use to monitor our progress towards being an influential, agile, high-performing organisation in which our people feel empowered, valued and engaged. Our measures reflect the breadth of our ambition in this area and the results are consolidated across both DPMC and NEMA.

Our performance this year against these measures is summarised in the table below which shows that:

• staff satisfaction in both agencies is similar to the public sector average. We aspire to have engagement levels that are higher than this and are working to increase this during the coming year
• the diversity of our workforce is relatively static. Increasing the diversity of our workforce is a long-term strategy for us
• gender pay gap in both agencies has fallen this year. Both DPMC and NEMA have Kia Toipoto plans that guide their activity in this area
• Te ao Māori capability in both agencies is relatively static and remains an area of focus for us
• the number of employee-led networks in DPMC and NEMA provides an indication of staff engagement and also contributes towards a culture in which staff feel included. Overall, the number or networks within the organisations has risen this year
• greenhouse gas emissions in both agencies show a significant reduction as a result of the actions taken during the year. This has been an area of action for us.

Indicator	Desired trend		Baseline 2022/23	Progress 2023/24
Employee-led networks	→ or ↑	DPMC	5	5
		NEMA	5	8
Te ao Māori capability of our workforce	↑	DPMC	50.2%	49.0%
		NEMA	43.2%	43.7%
Diversity of workforce	↑	DPMC	13.5%	14.1%
		NEMA	14.3%	12.4%
Gender pay gap	↓	DPMC	15.5%	9.9%
		NEMA	4.5%	3.6%
Staff satisfaction	↑	DPMC	61.0%	61.0%
		NEMA	55.0%	59.0%
Greenhouse gas emissions[6]	↓	DPMC	1,159.1	797.2
		NEMA	467.1	290.8

Key to the indicators: ↑ Increase, → Maintain Decrease ↓

The way in which we measure these indicators is set out on page 52.

Māori Crown relations capability#

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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. 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.

We continued to offer a range of learning and development opportunities in areas linked to individual role success. Across DPMC and NEMA during 2023/24, 27 percent of our people had undertaken some development in Māori Crown relations compared with 36 percent of people in 2022/23. This year 63 percent of people reported they had studied te reo Māori at any time compared with 69 percent in 2022/23. Our confidence in te reo Māori pronunciation increased to 74 percent in 2023/24, from 2022/23 when 68 percent of people reported feeling comfortable.

Treaty settlement commitments#

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He Korowai Whakamana

Reporting on commitments

He Korowai Whakamana, a Cabinet agreed framework, enhances the Crown’s accountability for its Treaty settlement commitments. He Korowai Whakamana requires core Crown agencies to record and track the status, and report annually on, their settlement commitments. DPMC is one of the agencies responsible for settlement commitments. DPMC is responsible for tracking the Crown’s overall progress with delivering on Treaty settlement commitments.

In 2023, core Crown agencies used Te Haeata – the Settlement Portal to record whether each of their commitments is complete, on track, yet to be triggered or has delivery issues.

As part of He Korowai Whakamana, core Crown agencies will report on the status of their settlement commitments from financial year 2023/24.

Status of DPMC commitments

As a supporting agency responsible for negotiating the settlement of historical Treaty of Waitangi claims, we are responsible for a variety of settlement commitments. This includes commitments relating to participation arrangements over natural resources, relationship redress, vesting and gift back.

As at 30 June 2023, DPMC was responsible for 26 Treaty settlement commitments. The status of these commitments, which have not changed as at 30 June 2024, is summarised below:

Carbon Neutral Government Programme#

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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 2024.

Independent verification

We have achieved Toitū Carbonreduce Certification in June 2024 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.

In 2019/20 the 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 1,159.12 tCO₂e emitted in 2022/23. This year we emitted less than in the two previous years.

Emissions relating to our role supporting the Governor-General, and the remainder of DPMC are combined to obtain total annual emissions as shown in the table below. The breakdown of the total annual emissions is also shown below:

Total annual emissions

Total annual emissions: Government House (GH)

Total annual emissions: DPMC ex-GH

Emissions profile broken down by category, scope and total annual emissions[7]

Category	Scope	2019/20 (tCO2e)	2022/23 (tCO2e)	2023/24 (tCO2e)
1 Direct emissions
Natural Gas Transport fuels Fuel use for generators Refrigerants LPG bottles	Scope 1	124.73	164.49	153.29
2 Indirect emissions from imported energy[7]
Electricity use	Scope 2	91.38	126.53	73.65
3 Indirect emissions from transportation
Air Travel Rental vehicles use Taxis and rideshare Accommodation Staff working from home	Scope 3	682.35	821.06	534.05
4 Indirect emissions from products and services used by organisation
Transmission of energy Water supply and treatment Waste disposal	Scope 3	36.76	47.04	36.24
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	Scope 3	0	0	0
Total Gross Emissions (tco2e)		937.22	1,159.12	797.23
Change in gross emissions from previous financial year			42.06%	31.22%
Change in gross emissions since base year			25.36%	14.94%

The table above shows our greenhouse gas emissions profile broken down by the four CNGP Categories[8] applicable to DPMC. Emissions from transportation (Category 3) are the largest contributor to greenhouse gas emissions, with air travel being the primary emissions source (see chart below).

Total transportation emissions (tCO₂e) 2023/24 compared to base year and prior year[9]

Emissions intensity by full-time equivalent (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 3.08 tCO₂e per FTE staff members as shown below.

FTE and Expenditure for 2023/24 compared to base year and prior year

KPI	2019/20	2022/23	2023/24
FTEs	198.99	288.43	258.60
Expenditure ($m)[10]		69.31	58.332
Emissions intensity
Total gross emissions per FTE (tCO2e)	4.71	4.01	3.08
Total gross emissions per million dollars of expenditure (tCO2e)		16.72	13.67

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 percent reduction in gross emission compared to base year.
• 2030 target: Gross emission (all Categories) to be no more than 543.59 tCO₂e - a 42 percent 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 in 2023/24, including:

• business groups given emissions reduction targets as part of 2023/24 business planning
• received report of specialist adviser for energy efficiency investment options for Government Houses in Auckland and Wellington, and
• revised the Emissions Reduction Plan to future proof the plan.

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 work.

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 continue to analyse our business-related travel and make available necessary insights to foster climate positive behaviours in our engagement with both domestic and international partners.

Critical assets performance #

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The assets we use comprise intangible assets, including acquired and internally generated software as well as property, plant and equipment assets. These assets include both assets owned by the Department as well as software provided as a service.

Strong asset and investment management practices are critical to our long-term success as not only are these a key enabler for all our services, they are also vital in achieving value for money.

However, while all assets are important, some service areas use assets that are service critical. A service critical asset is defined as an asset which, if damaged or destroyed, is likely to have a significantly adverse impact on the delivery of the agency's services. For the Department these areas include:

• Support to Cabinet and Cabinet committees: Software is used to securely support Cabinet and Cabinet committee processes. The performance indicator is set out below:

Indicator Category	Service Area	Indicator	Result
Availability	Support to Cabinet and Cabinet committees	Proportion of time that CabNet is available for use (outside of scheduled maintenance windows)	100%

• Tsunami Monitoring and Detection Network: The Deep-ocean Assessment and Monitoring of Tsunami (DART) buoys' network improves New Zealand's ability to monitor, detect and issue warnings about tsunami. The asset performance indicator is set out on page 64.

National Emergency Management Agency Annual Report 2023/24#

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Te Rākau Whakamarumaru Pūrongo-ā-tau 2023/24

Our Strategic Framework#

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Ko te Mahere Rautaki#

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Introduction from the Chief Executive#

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Kupu whakataki a te Tumu Whakarae

Following the response to the North Island Severe Weather Events of early 2023, the past year has seen NEMA focus on identifying and addressing gaps in operational readiness for ourselves and the wider emergency management system.

We have sought to make improvements across a range of areas, including a requirement for all NEMA staff to devote 20 percent of their time to operational readiness. We have streamlined the deployment process for surging support staff into impacted areas during emergencies and developed a Tākaihere function to strengthen the connection between emergency management and iwi, hapū and whānau in support of the response to a national event.

We are a small agency and cannot do this work on our own. Collective approaches, particularly with our Civil Defence Emergency Management Group partners, are needed to address the significant capacity and capability issues the system faces.

Supported by partner agencies, we have been building national leadership capacity. This has included the establishment of a new National Controllers Working Group who will deliver a sustainable, fit for purpose and agile pool of Wellington and non-Wellington based Alternative National Controllers. In conjunction with the Auckland Policy Office we have established a Delegated Chief Executives Network to support continuity leadership during catastrophic events.

The Government's forthcoming response to the Government Inquiry into the Response to the North Island Severe Weather Events will set the direction for NEMA, and the wider emergency management system for future years. Supporting the work led by DPMC to develop this response, as well as a new Emergency Management Bill, has been, and will continue to be, a key priority for NEMA.

The emergency management system must be ready to respond to hazards beyond those we are familiar with. This year we have seen heightened activity with space weather and become more widely aware of the hazard and potential risk to the community. While extreme space weather is a low probability event, it has the potential for far reaching, and potentially catastrophic consequences. We have rapidly developed an interim New Zealand Government Space Weather Response Plan and will continue to refine response arrangements over the coming months.

We closed this year with Day One and Two of Exercise Rū Whenua. Day Three will take place in the next financial year and focus on recovery. This tier 4 national exercise aimed to improve New Zealand's ability to respond to and recover from a Magnitude 8 Alpine Fault earthquake. It allowed us to test the improvements we have made to date and identify further gaps that should be addressed.

Finally, I would like to acknowledge NEMA staff for their commitment to ensuring NEMA and the wider emergency management system are better prepared to support communities when emergencies happen.

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 #

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Ko wai mātou, he aha ā mātou mahi

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. As steward, NEMA looks to provide strategic leadership for the 4Rs (Risk Reduction, Readiness, Response and Recovery), 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. Many emergencies over the past year were local or regional emergencies; during these, NEMA supported 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 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 people

Further information on our workforce is available in our DEI plan on our website www.dpmc.govt.nz/publications.

Our year at a glance#

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Te tau kua hipa

Our performance#

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Ko tā mātou mahi

What we achieved in 2023/24

We are learning from the past

The effects of the 2023 North Island Severe Weather events (NISWE) continue to impact communities, the emergency management sector, and NEMA. These effects will continue to be felt for years to come.

In the year following these events, NEMA released an internal operational lessons report to identify and share lessons learned and pinpoint areas for improvement. While this report focused on NEMA's internal response, the lessons identified align closely with the Government Inquiry's findings and recommendations.

This report has helped identify and prioritise actions for our 2024/25 work programme.

This year, we have formed internal teams dedicated to handling financial requests, and supporting the health and wellbeing of staff working in a response.

The importance of science in emergencies was clearly demonstrated during the response and ongoing recovery to the North Island Severe Weather Events. NEMA remains committed to advancing the integration of science and the science community into emergency responses. In 2023, NEMA established a National Heat Reference Group which is an interagency group that provides national leadership for heat (in the context of severe weather) risk management across the 4Rs. We also stood up a Science Desk, which will operate during NEMA-led National Crisis Management Centre activations to coordinate and facilitate the best available science expertise to inform decisions and operations.

The North Island Severe Weather Events highlighted the importance of planning and relationship building before a response. NEMA has been steadily strengthening relationships and works with over 50 agencies and entities along with the 16 CDEM Groups to grow response workforce capability and capacity.

The isolation experienced by communities during the North Island Severe Weather Events confirmed the critical role marae, hapū and iwi have in emergency management and revealed areas where NEMA and the broader emergency management system can improve.

In 2023, NEMA further developed its Kaitohutohu response function, renaming it Tākaihere. This national level Māori Liaison function manages relationships and matters pertaining to iwi and hapū during a response. Additionally, we appointed a Chief Advisor Māori, who will continue the development of NEMA's Te Kāhui Mataara (Māori strategy).

We have been in a constant state of recovery

NEMA continued to support active recoveries across New Zealand. At 30 June 2024, almost three quarters of Civil Defence Emergency Management Groups were in active recovery.

We established a permanent National Recovery Coordination Group. Key achievements included clarifying central government agency recovery roles and responsibilities; funding mechanisms; and existing networks. Additionally, NEMA set up a fortnightly Recovery Specialists Network meeting to strengthen relationships between local and central government practitioners. Through this initiative, we co-developed three multi-year workstreams: pre-disaster recovery planning; recovery capability development; and refreshing the recovery toolkit. We also co-convened a National Recovery Practitioners' Hui.

NEMA supported the Cyclone Recovery Unit which coordinates the recovery from the North Island Severe Weather Events.

We have helped prepare New Zealanders and build resilience

NEMA's public education programme encouraged readiness among New Zealanders, teaching them the right life safety actions to take during emergencies, helping them have plans, and gather supplies to get through the first few days. This year, we ran eight campaigns covering preparedness, tsunami safety, earthquake awareness, Emergency Mobile Alert awareness, and flooding awareness.

The percentage of New Zealanders who know the correct action to take if they feel a long or strong earthquake near the coast has increased by 11 percent from 75 percent to 86 percent. This is due to an increased focus of this topic in our public education programme.

To build community resilience, NEMA established the NEMA and CDEM Community Resilience Practitioners Group to enable more effective knowledge sharing across the emergency management sector. This initiative supports the sector to build relationships, capability and knowledge about the role of communities before, during and after emergencies.

NEMA continued to support grassroots initiatives that improve community readiness and overall resilience, including administering the CDEM Resilience Fund of $889,000. This fund supports development of local and regional capability and practices, and providing technical advice to the Community Renewable Energy Fund.

We invested in response readiness

Recent advances in science and modelling techniques have improved our understanding of the likelihood and consequences of catastrophic events for New Zealand. NEMA's Catastrophic Planning Programme improves New Zealand's readiness for such events. We are developing a hazard agnostic Catastrophic Event Handbook to guide a response through a catastrophic event.

In 2023, NEMA introduced a weekly commitment for all staff to participate in response and recovery readiness training, including developing and testing standard operating procedures, tools and processes. This significant commitment will have far reaching impacts on our operational readiness and the future success of emergency responses and early recovery.

We have already begun to see benefits of this time commitment, as it has helped us prepare for Exercise Rū Whenua. Exercise Rū Whenua was an all-of-government national exercise programme based on an Alpine Fault magnitude 8 earthquake.

Research indicates there is a 75 percent probability of an Alpine Fault earthquake occurring in the next 50 years. There is a 4 out of 5 chance it will be a magnitude 8+ event. Responding to an event of this size will require a coordinated multi-agency national response.

NEMA held the first two days of Exercise Rū Whenua this year, Day Three will take place in the next financial year.

Through Exercise Rū Whenua, NEMA has established relationships with Te Rūnanga o Ngāi Tahu and Te Tau Ihu to examine the development of the previously mentioned Tākaihere function. NEMA is in the early stages of developing relationships with the National Iwi Chairs and the New Zealand Māori Council to assist in developing an iwi wide approach to the 4Rs.

We worked to uplift the emergency management system

NEMA delivered foundational Coordinated Incident Management System (CIMS) training in Auckland, Wellington, and Christchurch, including train-the-trainer workshops.

This year, NEMA established the CDEM/NEMA Workforce Development Project to create common training materials, ensuring consistent understanding and implementation of the roles and tasks required in a response. This will enable more staff to confidently assist in regions and/or the National Crisis Management Centre.

In conjunction with the Auckland Policy Office, NEMA created a Delegated Chief Executive Network to build leadership capability outside of Wellington.

A National Controller Working Group was established in December 2023, delivering a pool of Alternative National Controllers who will work with consistent intent, a first step in building nationally consistent response leadership capability and capacity.

Building our organisational health and capability

In 2023 we launched a new, enduring strategic framework to future proof NEMA's role in the emergency management system and our ability to deliver on government expectations. This will enable us to mature our prioritisation processes for years to come.

While NEMA shares a health and safety policy with DPMC, we face additional risks due to the emergency related nature of our work.

We are developing a comprehensive, NEMA-specific health and safety plan to address these additional risks. For more information on progress related to shared DPMC and NEMA organisational health and capability objectives, refer to page 25 of the DPMC Annual Report.

NEMA staff members have individual development plans which include personal development, modelling NEMA values and developing te ao Māori capability and cultural competency.

Staff wellbeing has been a focus for NEMA in 2023/24. We launched an internal wellbeing plan to reflect a desire to invest in our people, and in recognition that staff fatigue is a risk for NEMA. This plan aims to ensure NEMA is connected and resilient, and that workloads are manageable.

Following the North Island Severe Weather Events, NEMA established an internal Health and Wellbeing function to support staff working in the National Crisis Management Centre during a response. We anticipate that this will make a difference to the resilience of our workforce who are expected to respond to escalating and concurrent emergencies as they occur, with little notice and under uncertain circumstances.

Our Diversity, Equity and Inclusion (DEI) Plan includes a set of actions to help close gender, Māori, Pacific and ethnic pay gaps at NEMA. This plan indicates our commitment to workplace diversity. NEMA's gender pay gap has decreased from 16 percent in June 2021 to 5 percent in 2023. Women are no longer over-represented in lower paid roles or under-represented in higher paid roles. This is significant progress. Understanding and addressing our challenges in ethnic diversity will be a future focus. Our DEI plan is available on the DPMC website www.dpmc.govt.nz/publications.

Gender balanced leadership

Women occupied 53 percent of all leader roles (18 of 35) and 60 percent of T2 and T3. This is similar to last year.

Gender pay gap

• NEMA's gender pay gap has improved by 1.4 percentage points in the last year.
• The gender pay gap for new permanent staff in 2023/24 was 2.6 percent.
• NEMA currently has 56 percent female staff and 43 percent male.

Treaty settlement commitments#

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He korowai whakamana

He Korowai Whakamana, a Cabinet agreed framework, enhances the Crown’s accountability for its Treaty settlement commitments. It requires core Crown agencies to record and track the status, and report annually on, their settlement commitments.

In 2023, core Crown agencies used Te Haeata – the Settlement Portal to record whether each of their commitments is complete, on track, yet to be triggered or has delivery issues. Core Crown agencies now must report on the status of their settlement commitments from financial year 2023/24.

As of 30 June 2024, NEMA was listed as a responsible entity for two Treaty Settlement commitments, both from the Ngāti Rangi Claims Settlement Act 2019 (section 109 and 110). These relate to participation arrangements over natural resources.

Section 109 provides that decision makers under the Civil Defence Emergency Management Act must have regard to Te Mana Tupua and Ngā Toka Tupua. This commitment is recorded as on track.

Section 110 provides that Persons exercising or performing statutory functions, powers, or duties that relate to the Whangaehu River, or to activities in the Te Waiū-o-Te-Ika catchment that affect the Whangaehu River, may consider Te Mana Tupua and Ngā Toka Tupua as a relevant consideration.

This commitment is recorded as yet to be triggered (ie, the commitment is not yet due to be delivered. This may be because the commitment is conditional on another action that is yet to be triggered).

This is because none of NEMA's functions, powers or duties (under the Civil Defence Emergency Management Act 2002) have yet needed to be exercised that relate directly to the Whangaehu River (or to activities in the Te Waiū-o-Te-Ika catchment that affect the Whangaehu River).

The status of our Treaty settlement commitments

Source: Te Haeata Settlement Portal.

Our numbers at a glance#

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Carbon Neutral Government Programme#

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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 2024.

Independent verification

We are proud to have achieved Toitū Carbon reduce Certification in June 2024 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.

Total annual emissions and their source

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 467.14 tCO₂e emitted in 2022/23 when we activated the National Coordination Centre in response to the North Island severe weather events. This year we emitted more than our previous years due to higher levels of international air travel.

Emissions profile broken down by category, scope and total annual emissions[11]

Category	Scope	2019/20 (tCO2e)	2022/23 (tCO2e)	2023/24 (tCO2e)
1 Direct emissions
Natural gas Transport fuels	Scope 1	36.66	70.38	74.18
2 Indirect emissions from imported energy[11]
Electricity use	Scope 2	7.34	22.37	10.62
3 Indirect emissions from transportation
Air Travel Rental vehicles use Taxis and rideshare Accommodation Staff working from home	Scope 3	205.02	354.33	188.17
4 Indirect emissions from products and services used by organisation
Transmission of energy Water supply and treatment Waste disposal	Scope 3	4.38	20.05	17.84
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	Scope 3	0	0	0
TOTAL GROSS EMISSIONS (tCO2e)		253.40	467.14	290.81
Change in gross emissions from previous financial year			52.28%	37.74%
Change in gross emissions since base year			84.34%	14.76%

The table above shows our greenhouse gas emissions profile broken down by the four CNGP Categories[12] 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 an increase in the number of staff, travel related to the North Island Severe Weather Events and Cyclone Recovery, and an increase in international travel. For example, accompanying the Minister to Australia to visit NEMA Australia, and Ministry of Foreign Affairs and Trade-funded travel requirements.

Total transportation emissions (tCO₂e) 2023/24 compared to base year and prior year[13]

Emissions intensity by full-time equivalent (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 FTE staff members increased by 2.5 times since base year, our emissions intensity per FTE has decreased from 4.03 tCO₂e to 1.83 tCO₂e as shown below.

FTE and Expenditure for 2023/24 compared to base year and prior year

KPI	2019/20	2022/23	2023/24
FTEs	63.10	167.87	158.7
Expenditure ($m)[14]		44.11	49.18
Emissions intensity
Total gross emissions per FTE (tCO2e)	4.03	2.78	1.83
Total gross emissions per million dollars of expenditure (tCO2e)		10.59	5.91

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 percent reduction in gross emission compared to base year.
• 2030 target: Gross emission (all Categories) to be no more than 147.64 tCO₂e - a 42 percent 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:

• revised the Emissions Reduction Plan, and
• analysed group level travel profiles as part of our quarterly reporting.

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.

Notes

Our performance reporting#

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Tā mātou pūrongo mahi

Service performance judgements and assumptions#

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The service performance information on pages 4 to 24, and pages 48 to 51 and pages 57 to 66 was prepared in accordance with PBE FRS 48. Performance measures deleted or expired through the Supplementary Estimates of Appropriations 2023/24 from the Estimates of Appropriations 2023/24 are explained on pages 61, 63, and 65.

Disclosure of judgements

In preparing the service performance information for the 2023/24 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 not a 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.

Explanatory commentary for non-achievement

In our reporting non-achievement of a target we provide an explanation where it assists in telling a better performance story. We do so in instances where non-achievement is 8 percent or more as such variation is generally accompanied by written commentary that provides insights into the results. 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  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 a randomly selected sample of policy advice and assessments. 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 DPMC. NEMA report a separate score.

The review panel consists of senior policy staff across DPMC and NEMA. In past years the review panel has been chaired by an external contractor. In 2023/24 a senior staff member from the Policy Advisory Group, whose work is not included in the policy quality review, chaired the panel. All other aspects of the process meet the Policy Quality Framework and remained the same, other than that the selection of the random sample was conducted using a technology tool by the team administering the panel.

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. The Department 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, and
• 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, and
• 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, and
• achieved - where all of the three dimensions of the policy quality distribution score have been met.

Satisfaction measures

Measuring Ministerial, Governor-General or stakeholder satisfaction with advice and services is conducted annually for the entire financial year by survey. Two types of satisfaction measures are reported on: Satisfaction with policy advice and satisfaction with advice and services. Satisfaction is measured on a scale from 1 to 5, where 1 means never met expectations and 5 means always exceeded expectations.

Satisfaction with policy advice

Ministerial satisfaction with policy advice is either an overall satisfaction rating or measured using the Policy Project's Ministerial Policy Satisfaction Survey. The survey contains a common set of questions that agencies use to assess their Minister's satisfaction with the services provided. 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 policy satisfaction measures have a target of 4 out of 5, reflecting the high level of ambition for a well-governed New Zealand.

Satisfaction with advice and services

Satisfaction in relation to advice and/or services is either an overall satisfaction rating or an average of overall satisfaction in the following dimensions: advice meets needs, is timely and of a high quality. Satisfaction is measured on a scale from 1 to 5, where 1 means never met expectations and 5 means always exceeded expectations.

Changes in responsibility

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

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 2023/24, due to the change in Government, the following Ministers were sent Ministerial satisfaction surveys to complete the at year end:
  • Prime Minister Rt Hon Christopher Luxon – Prime Minister and Minister for National Security and Intelligence
  • Hon Chris Bishop – Minister for Infrastructure
  • Hon Judith Collins KC – Lead Coordination Minister for the Government’s Response to the Royal Commission’s Report into the Terrorist Attack on the Christchurch Mosques, and
  • Hon Mark Mitchell – Minister for Emergency Management and Recovery.

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 (2022/23: 3.6)	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 Explanation: 8% or 0.29 from baseline
Prime Minister and Ministerial satisfaction with advice and servicing is maintained or increases over baseline year (2022/23: 4.8)	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 Explanation: 8% or 0.33 from baseline
Uptake of Policy Project tools and frameworks is maintained or increases over baseline year (2023/24: Percentage of agencies with a policy function that have a capability building plan improvement plan: 50.0% Number of agencies with a policy function using the Policy Skills Framework: 85.7% Number of agencies with a policy function using the Policy Capability Framework: 89.3%)	This indicator is calculated using the activities of the Policy Project to build policy quality capability in the public service. This consists of the prior years' uptake of tools and frameworks. The indicator baseline, consisting of three data points, is set from the 2023/24 year due to a lag in data availability.	Not achieved - where fewer than two out of the three dimensions of the indicator have been met Partially achieved - where two out of the three dimensions of the indicator have been met Achieved - where all of the three dimensions of the indicator have been met. Explanation: 8% from baseline
Outcome 2: Aotearoa New Zealand's systems and institutions of executive government are trusted, effective and enhance our nation's interests
Ministerial satisfaction with the systems and institutions of executive government is maintained or increases over baseline year (2022/23: 5.0)	The Prime Minister, on behalf of all Ministers satisfaction survey response. This indicator is calculated as an average of questions asked to the Prime Minister, in their role as Chair of Cabinet, regarding satisfaction with DPMC's performance in ensuring systems and institutions of executive government are trusted and effective.	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 Explanation: 8% or 0.4 from baseline
Governor-General satisfaction with support provided is maintained or increases over baseline year (2022/23: 4.5)	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 Explanation: 8% or 0.36 from baseline
Outcome 3: People living in Aotearoa New Zealand are, and feel, resilient, safe and secure
Public confidence in government agencies to deal with national security threats and emergencies (2022/23: 53%)	Average of the following subset of questions/threat areas from National Security Public Survey, conducted by IPSOS, that relate to the National Security Group and NEMA work programmes: Disinformation Breakdown in national infrastructure due to an attack Terrorist attack/violent extremism Other countries threatening New Zealand interests in the Pacific Other countries interfering in New Zealand affairs Foreign country/actor coercing New Zealand to act against its interests Hacking into information systems Emerging technology (e.g. deep fakes, autonomous weapons) Natural disaster.	Not on track - where the average confidence score for relevant questions is less than the baseline score On track - where the average confidence score for relevant questions meets or exceeds the baseline score Explanation: 8% or 4 percentage points from baseline
Ministerial satisfaction with leadership of the National Security and Emergency Management Systems is maintained or increases over baseline year (2022/23: 4.50)	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 Explanation: 8% or 0.36 from baseline
National security agencies are satisfied with the leadership of the national security system (2022/23: 3.3)	Responses to a satisfaction survey sent to Chief Executives of agencies on the Security and Intelligence Board 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 Explanation: 8% or 0.26 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 (2022/23: 57%)	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 Explanation: 8% or 5.49 from baseline
Outcome: An influential, agile, high-performing organisation in which our people feel empowered, valued and engaged
The number of DPMC and NEMA employee-led networks is maintained or increased (2022/23: DPMC 5, NEMA 5)	This indicator is a calculated as a count of employee-led networks at DPMC and NEMA.	Not on track - where the number of DPMC and NEMA employee-led networks is less than the baseline score On track - where the number of DPMC and NEMA employee-led networks exceeds the baseline score No change - where the number of DPMC and NEMA employee-led networks has not changed from the baseline score Explanation: 8% or 1 from baseline
The Te Aō Māori capability of our workforce is increased (2022/23: DPMC 50.2%, NEMA 43.2%)	This indicator is an average of the results of four competency related questions in the Whāia te Mātauranga survey (using the Te Arawhiti model). The percentage of respondents reporting moderately confident and above is used as the result for each question.	Not on track - where the Te Aō Māori capability of our workforce is less than the baseline score On track - where the Te Aō Māori capability of our workforce exceeds the baseline score No change - where the Te Aō Māori capability of our workforce has not changed from the baseline score Explanation: 8% from baseline
The diversity of our workforce is increased (2022/23: DPMC 13.5%, NEMA 14.3%)	This indicator is calculated as a percentage of staff from DPMC and NEMA (of those who identify with an ethnicity) who identify only as European/Pākehā. The remainder percentage is the result for the year.	Not on track - where the percentage of people who identify from non-European/Pākehā ethnicities is less than the baseline score On track - where the percentage of people who identify from non-European/Pākehā ethnicities exceeds the baseline score No change - where the percentage of people who identify from non-European/Pākehā ethnicities has not changed from the baseline score Explanation: 8% from baseline
Our Gender Pay Gap is decreased (2022/23: DPMC 15.5%, NEMA 4.5%)	This indicator is calculated as the average Gender Pay Gap as at 30 June for DPMC and NEMA.	Not on track - where the GPG is less than the baseline score On track - where the GPG exceeds the baseline score No change - where the GPG has not changed from the baseline score Explanation: 8% from baseline
Our staff satisfaction is increased (2022/23: DPMC 61.0%, NEMA 55.0%)	This indicator is calculated as the percentage of respondents who reported somewhat agree and above for a set of 21 questions in the Kōrero Mai staff experience survey. This is called the People Score.	Not on track - where staff satisfaction is less than the baseline score On track - where staff satisfaction exceeds the baseline score No change - where staff satisfaction has not changed from the baseline score Explanation: 8% from baseline
Our Greenhouse Gas Emissions are decreased (2022/23: DPMC 1159.1 tCO2e, NEMA 467.1 tCO2e)	This indicator is a calculated as a count of emissions sources included and identified within organisation operations, including direct and indirect emissions sources from both DPMC and NEMA.	Not on track - where the Greenhouse Gas Emissions is less than the baseline score On track - where the Greenhouse Gas Emissions exceeds the baseline score No change - where the Greenhouse Gas Emissions has not changed from the baseline score Explanation: 8% from baseline

Appropriation statements#

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

for the year ended 30 June 2024

	2023/24 Actual $000	2023/24 Budget $000	2023/24 Supp. Estimates $000	Where performance information is reported
DEPARTMENTAL OUTPUT EXPENSES
Cyber Security	1,613	1,945	2,233	Our performance reporting section
Extreme Weather Events All of Government Response	7,685	15,702	14,755	Our performance reporting section
TOTAL DEPARTMENTAL OUTPUT EXPENSES	9,298	17,647	16,988
DEPARTMENTAL CAPITAL EXPENDITURE
Department of the Prime Minister and Cabinet - Capital Expenditure PLA	5,139	2,960	2,960	Our performance reporting section
TOTAL DEPARTMENTAL CAPITAL EXPENDITURE	5,139	2,960	2,960
NON-DEPARTMENTAL OUTPUT EXPENSES
Centre of Excellence for Preventing and Countering Violent Extremism	1,325	2,150	1,325	Exempt under section 15D(2)(b)(iii) of the Public Finance Act 1989
North Island Severe Weather Events - Administrative Services (MYA Expense)	1,108	-	2,400	Exempt under section 15D(2)(b)(iii) of the Public Finance Act 1989
TOTAL NON-DEPARTMENTAL OUTPUT EXPENSES	2,433	2,150	3,725
NON-DEPARTMENTAL OTHER EXPENSES
Extreme Weather Events - Regional and Local Support	15,000	15,000	15,000	Minister's Report appended to the DPMC Annual Report
Flood Resilience Projects (MYA Expense)	11,122	-	25,655	Minister's Report appended to the DPMC Annual Report
Governor-General's Programme PLA	2,090	1,650	1,650	Exempt under section 15D(2)(b)(iii) of the Public Finance Act 1989
Governor-General's Salary and Allowance PLA	460	500	500	Exempt under section 15D(2)(b)(ii) of the Public Finance Act 1989
Governor-General's Travel Outside New Zealand PLA	125	407	407	Exempt under section 15D(2)(b)(iii) of the Public Finance Act 1989
Local Authority Emergency Expenses PLA	21,964	5,000	5,000	Minister's Report appended to the DPMC Annual Report
North Island Severe Weather Events (MYA Expense)	778,660	-	700,060	Minister's Report appended to the DPMC Annual Report
Remuneration of Commissioners of Intelligence Warrants PLA	47	174	174	Exempt under section 15D(2)(b)(ii) of the Public Finance Act 1989
TOTAL NON-DEPARTMENTAL OTHER EXPENSES	829,468	22,731	748,446
MULTI-CATEGORY EXPENSES AND CAPITAL EXPENDITURE
Advice and Support Services MCA
DEPARTMENTAL OUTPUT EXPENSES
Advice and Support to Government and the Governor‑General	49,639	51,968	57,965	Our performance reporting section
NON-DEPARTMENTAL OTHER EXPENSES
Depreciation and Maintenance of Government House Buildings and Related Assets	2,022	2,232	2,482	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	857	550	550	Exempt under section 15D(2)(b)(iii) of the Public Finance Act 1989
TOTAL ADVICE AND SUPPORT SERVICES MCA	53,313	55,545	61,792
Emergency Management Leadership and Support MCA
DEPARTMENTAL OUTPUT EXPENSES
Advice and Support for Emergency Risk Reduction, Readiness, Response and Recovery	49,108	42,618	57,776	Our performance reporting section
NON-DEPARTMENTAL OTHER EXPENSES
Emergency Risk Reduction, Readiness, Response and Recovery	14,453	3,666	31,236	Exempt under section 15D(2)(b)(ii) of the Public Finance Act 1989
TOTAL EMERGENCY MANAGEMENT LEADERSHIP AND SUPPORT MCA	63,561	46,284	89,012
TOTAL MULTI-CATEGORY EXPENSES AND CAPITAL EXPENDITURE	116,874	101,829	150,804
TOTAL ANNUAL AND PERMANENT APPROPRIATIONS	963,212	147,317	922,923

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

2022/23 Actual $000		2023/24 Actual $000
120,883	Total expenses in Departmental Statement of Comprehensive Revenue and Expenses	108,045
(31)	Administration and Use of Ministry of Health appropriation: National Response to COVID-19 Across the Health Sector Multi-Class Appropriation	-
-	Remeasurements	-
120,852	TOTAL APPROPRIATIONS FOR DEPARTMENTAL EXPENSES	108,045

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

2022/23 Actual $000		2023/24 Actual $000
88,815	Total expenses in Schedule of Non-departmental Expenses	898,334
(2,650)	GST Input expense	(49,163)
86,165	TOTAL APPROPRIATIONS FOR NON-DEPARTMENTAL EXPENSES	849,171

Reconciliation to Total Annual and Permanent Appropriations

2022/23 Actual $000		2023/24 Actual $000
120,852	Total Appropriations for Departmental Expenses	108,045
86,165	Total Appropriations for Non-departmental Expenses	849,171
560	Total Departmental Capital Expenditure	5,139
401	Total Non-departmental Capital Expenditure	857
207,978	TOTAL ANNUAL AND PERMANENT APPROPRIATIONS	963,212

Statement of Departmental and Non-departmental Expenses and Capital Expenditure incurred without, or in excess of Appropriation, or other Authority

for the year ended 30 June 2024

The Department has not incurred any departmental or non-departmental expenses or capital expenditure without, or in excess of appropriation, or other authority (2023: Nil).

Statement of Capital Injections

for the year ended 30 June 2024

2022/23 Actual $000		2023/24 Budget $000	2023/24 Supp. Estimates $000	2023/24 Actual $000
208	Capital Injection	2,860	2,860	2,860

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

for the year ended 30 June 2024

DPMC has not received any capital injections during the year without, or in excess of, authority (2023: Nil).

Reporting against our appropriations#

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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 2023/24	Result 2022/23	Result 2023/24	Achieved
Percentage of projects under the Cyber Security Strategy work programme on track to meet key delivery and funding milestones, as reported to the Cyber Security Strategy Coordination Committee (CSSCC) tracker	80%	New measure	90%	✔

How much it cost

2022/23 Actual $000		2023/24 Actual $000	2023/24 Budget $000	2023/24 Supp. Estimates $000
3,725	Revenue Crown	2,233	1,945	2,233
-	Revenue Other	-	-	-
3,725	TOTAL REVENUE	2,233	1,945	2,233
3,451	Expenses	1,613	1,945	2,233
274	Net Surplus/(Deficit)	620	-	-

Expenditure was lower than both the Budget and the Supplementary Estimates as some Cyber Security Strategy projects were delayed due to the agencies leading the projects being impacted by other organisational and system priorities. The projects are now expected to be delivered in 2024/25.

The full programme was approved by the Cyber Security Coordination Committee in 2023/24, which included new projects. During the year agencies faced pressures due to other organisational and system priorities, the full programme was rescheduled for delivery in 2024/25.

Extreme Weather Events All of Government Response  #

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

What we achieved

Performance measure	Target 2023/24	Result 2022/23	Result 2023/24	Achieved
The Minister for Emergency Management and Recovery is satisfied with the leadership and coordination of the extreme weather events recovery	4	Revised measure	4.75	✔
The Minister for Emergency Management and Recovery is satisfied with the policy advice service provided by the Cyclone Recovery Unit and Taskforce	4	New measure	4.86	✔
The Cyclone Recovery Chief Executive Governance Group is satisfied with the coordination of the extreme weather events recovery	4	New measure	N/A	N/A
Average score for assessed policy papers	4	New measure	3.17	✗
Quality of policy advice papers - 70% score 3 or higher, 30% score 4 or higher and no more than 10% score 2 or less	Achieved	New measure	Partially achieved	✗

How much it cost

2022/23 Actual $000		2023/24 Actual $000	2023/24 Budget $000	2023/24 Supp. Estimates $000
2,889	Revenue Crown	14,755	15,702	14,755
-	Revenue Other	-	-	-
2,889	TOTAL REVENUE	14,755	15,702	14,755
1,754	Expenses	7,685	15,702	14,755
1,135	Net Surplus/(Deficit)	7,070	-	-

Departmental expenditure for this appropriation was lower than both the Budget and the Supplementary Estimates due to the disestablishment of the Cyclone Gabrielle Recovery Taskforce and an underspend for Whenua Māori and Marae Pathway work, due to delays in ministerial decisions and an increased number of impacted maraes and properties identified for action. Some budget was also held to support potential variations in the work programme that was not ultimately required.

Department of the Prime Minister and Cabinet - Capital Expenditure PLA#

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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 2023/24, expenditure was in accordance with the Department's approved capital asset management plan.

How much it cost

2022/23 Actual $000		2023/24 Actual $000	2023/24 Budget $000	2023/24 Supp. Estimates $000
560	Property, Plant and Equipment	5,139	2,960	2,960
560	TOTAL APPROPRIATION	5,139	2,960	2,960

Advice and Support Services#

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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 2023/24	Result 2022/23	Result 2023/24	Achieved
The Prime Minister is satisfied with the services and support provided by the Department of the Prime Minister and Cabinet	4	4.50	4.25	✔
The Governor-General is satisfied with the services and support provided by the Department of the Prime Minister and Cabinet	4	4.46	4.21	✔

How much it cost

2022/23 Actual $000		2023/24 Actual $000	2023/24 Budget $000	2023/24 Supp. Estimates $000
54,639	Revenue Crown	55,081	51,888	55,081
1,105	Revenue Department	860	50	2,714
161	Revenue Other	166	30	170
55,905	TOTAL REVENUE	56,107	51,968	57,965
46,156	Departmental Expenses	49,639	51,968	57,965
9,749	Net Surplus/(Deficit)	6,468	-	-
3,123	Non-departmental Expenses	2,817	3,027	3,277
401	Non-departmental Capital Expenditure	857	550	550

Departmental expenditure was lower than both the Budget and the Supplementary Estimates mainly due to lower than anticipated expenditure for activity associated with the response to the recommendations of the report from the Royal Commission of Inquiry into the Terrorist Attack on Christchurch Mosques on 15 March 2019, the disinformation programme, reshaping a business group in DPMC, the Prime Minister's Special Envoy and the Policy Project. Some one-off savings were also made for office rent. This was partly offset by higher than expected costs for Government House.

Non-departmental expenditure was underspent against the Supplementary Estimates due to lower than anticipated spend for Government House planned maintenance and capital projects. This is mainly the result of project delays and reprioritisations. Some of these projects will continue into 2024/25.

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

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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 2023/24	Result 2022/23	Result 2023/24	Achieved
Advice to Government
The Prime Minister is satisfied with the policy advice service	4	5	5	✔
The Minister for National Security and Intelligence is satisfied with the policy advice service	4	4	4	✔
Average score for assessed policy papers	4	3.46	3.17	✗
Quality of policy advice papers - 70% score 3 or higher, 30% score 4 or higher and no more than 10% score 2 or less	Achieved	Partially achieved	Partially achieved	✗
The Minister for National Security and Intelligence is satisfied with the leadership, coordination and collaboration within the national security and intelligence system	4	4	4	✔
The Prime Minister is satisfied with the advice and governance services to support national risk and strengthening resilience	4	New measure	3	✗
The Prime Minister is satisfied with the provision of intelligence assessments that support national security priorities	4	4	3	✗
Average score of a sample of intelligence assessments reviewed by an external reviewer	4	4.02	4.07	✔
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	4	3.38	4	✔
The Prime Minister is satisfied with the advice and support provided by the Delivery Unit	4	Revised measure	3	✗
The Minister for Infrastructure is satisfied with the advice and support on the critical infrastructure resilience programme	4	New measure	4	✔
Support to the Prime Minister, Cabinet and the Governor-General
The Prime Minister is satisfied with the support, secretariat and coordination services provided	4	4	5	✔
Cabinet and Cabinet committee minutes requiring subsequent amendment (excluding amendments made as the result of Cabinet decisions)	0.5%	0.14%	0.3%	✔
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%	93%	90%	✔
Cabinet minutes will be published on CabNet by the close of business, three days after the Cabinet meeting	95%	98%	98%	✔
The Governor-General is satisfied with the advisory and constitutional services provided	4	4.33	4.42	✔
The Governor-General is satisfied with the programme and household services provided	4	4.58	4	✔

How much it cost

2022/23 Actual $000		2023/24 Actual $000	2023/24 Budget $000	2023/24 Supp. Estimates $000
54,639	Revenue Crown	55,081	51,888	55,081
1,105	Revenue Department	860	50	2,714
161	Revenue Other	166	30	170
55,905	TOTAL REVENUE	56,107	51,968	57,965
46,156	Departmental Expenses	49,639	51,968	57,965
9,749	Net Surplus/(Deficit)	6,468	-	-

Category: Prime Minister's Chief Science Advisor Research Programme #

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

What we achieved

Performance measure	Target 2023/24	Result 2022/23	Result 2023/24	Achieved
The Prime Minister is satisfied with the scientific advice provided	4	5	4	✔

How much it cost

2022/23 Actual $000		2023/24 Actual $000	2023/24 Budget $000	2023/24 Supp. Estimates $000
795	Expenses	795	795	795

Emergency Management Leadership and Support #

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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 2023/24	Result 2022/23	Result 2023/24	Achieved
The National Emergency Management Agency maintains a positive public reputation index score	At least 5 points above	Revised measure	71%	✔
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 (see the disclosure on page 63)	66%	57%	61%	✗

How much it cost

2022/23 Actual $000		2023/24 Actual $000	2023/24 Budget $000	2023/24 Supp. Estimates $000
71,382	Revenue Crown	56,087	42,388	56,087
796	Revenue Department	102	230	1,539
68	Revenue Other	1,130	-	150
72,246	TOTAL REVENUE	57,319	42,618	57,776
51,780	Departmental Expenses	49,108	42,618	57,776
20,466	Net Surplus/(Deficit)	8,211	-	-
29,967	Non-departmental Expenses	14,453	3,666	31,236
-	Non-departmental Capital Expenses	-	-	-

Departmental expenditure was higher than originally budgeted due to expenditure related to funding carried forward from 2022/23 plus support for Pacific disaster readiness, for which budget was included in the Supplementary Estimates. The underspend against the Supplementary Estimates was mainly due to lower expenditure for North Island extreme weather events response and recovery and maintenance of the Tsunami Detection Network occurring later in the year than assumed, resulting in it continuing into 2024/25.

Non-departmental expenditure was higher than originally budgeted due to expenditure related to funding carried forward from 2022/23 for several emergency management initiatives, including support for communities impacted by the 2023 North Island extreme weather events. Budget for these items carried forward was included in the Supplementary Estimates.

The underspend against the Supplementary Estimates is mainly due to lower expenditure than budgeted to support emergency readiness and response activities, including support for communities impacted by the 2023 North Island extreme weather events where the level of eligible claims was lower than expected.

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

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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 2023/24	Result 2022/23	Result 2023/24	Achieved
Community Awareness and Readiness
Percentage of New Zealanders who have taken action to prepare for an emergency in the last 12 months	50%	43%	38%	✗
Percentage of New Zealanders who know the correct action to take during an earthquake	67%	52%	59%	✗
Percentage of New Zealanders who know the correct action to take if they feel a long or strong earthquake near the coast	85%	75%	86%	✔
Emergency Sector Support and Management
Satisfaction is at least 6 out of 10 in relation to the two measures below:
if a Guideline, Technical Standard, or Code was required did it meet the CDEM sector users' needs	6	7.4	7.7	✔
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	12	12	12	✔
Management of Emergencies
Number of times the National Emergency Management Agency improvement action plan is reviewed	4	Revised measure	3	✗
Policy Advice
The Minister for Emergency Management and Recovery is satisfied with the policy advice service provided by the National Emergency Management Agency	4	Revised measure	4.86	✔
Average score for assessed policy papers	4	3.25	3.08	✗
Quality of policy advice papers - 70% score 3 or higher, 30% score 4 or higher and no more than 10% score 2 or less	Achieved	Partially achieved	Partially achieved	✗

How much it cost

2022/23 Actual $000		2023/24 Actual $000	2023/24 Budget $000	2023/24 Supp. Estimates $000
71,382	Revenue Crown	56,087	42,388	56,087
796	Revenue Department	102	230	1,539
68	Revenue Other	1,130	-	150
72,246	TOTAL REVENUE	57,319	42,618	57,776
51,780	Departmental Expenses	49,108	42,618	57,776
20,466	Net Surplus/(Deficit)	8,211	-	-

Our financials #

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Tauāki pūtea

Statement of responsibility#

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

• the preparation of the Department's Financial Statements, and Statements of Expenses and Capital Expenditure, and for the judgements expressed in them;
• having in place a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting;
• ensuring that end-of-year performance information on each appropriation administered by the Department is provided in accordance with sections 19A to 19C of the Public Finance Act 1989, whether or not that information is included in this Annual Report; and
• the accuracy of any end-of-year performance information prepared by the Department, whether or not that information is included in the Annual Report.
• In my opinion:
• the annual report fairly reflects the operations, progress, and the organisational health and capability of the Department;
• the Financial Statements fairly reflect the financial position of the Department as at 30 June 2024 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 2025 and its operations for the year ending on that date.

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

Date: 30 September 2024

Independent Auditor's Report#

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To the readers of Department of the Prime Minister and Cabinet's annual reportfor the year ended 30 June 2024

The Auditor‑General is the auditor of the Department of the Prime Minister and Cabinet (the Department).The Auditor‑General has appointed me, Ajay Sharma, 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 2024, 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 2024 on pages 4 to 24, 48 to 51 and 57 to 66;
• the statements of expenses and capital expenditure of the Department for the year ended 30 June 2024 on pages 53 to 56; and
• the schedules of non‑departmental activities which are managed by the Department on behalf of the Crown on pages 87 to 93 that comprise:
  • the schedules of assets; liabilities; commitments; and contingent liabilities and contingent assets as at 30 June 2024;
  • the schedules of expenses; and revenue and receipts for the year ended 30 June 2024; 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 2024; 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; and
• the performance information for the appropriations administered by the Department for the year ended 30 June 2024:
  • 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; and
• 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; and
• 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 contingent assets as at 30 June 2024; and
  • expenses and revenue and receipts for the year ended 30 June 2024.

Our audit was completed on 30 September 2024. This is the date at which our opinion is expressed.

The basis for our opinion is explained below and we draw attention to the uncertainty over the provision for voluntary property buyouts. 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.

Emphasis of matter ‑ Uncertainty over the provision for voluntary property buyouts

Without modifying our opinion, we draw attention to note 3(b) on page 93 of the non‑departmental financial schedules, which outlines the factors that generate uncertainty over the $390.41 million estimated Crown contribution for voluntary property buyouts. The provision reflects the agreed maximum obligation of the Crown for the buyouts.

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 2023/24 to 2026/27, Estimates and Supplementary Estimates of Appropriations 2023/24 and the 2023/24 forecast financial figures included in the Department's 2022/23 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 Executiveand, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Department’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the information we audited or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Department to cease to continue as a going concern.
• We evaluate the overall presentation, structure and content of the information we audited, including the disclosures, and whether the information we auditedrepresents the underlying transactions and events in a manner that achieves fair presentation.

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

Our responsibilities arise from the Public Audit Act 2001.

Other information

The Chief Executive is responsible for the other information. The other information comprises the information included on pages 2, 25 to 46, 52, and 96 to 100, 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 report by the Minister for Emergency Management and Recovery 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 Minister's report to be audited and we have performed no procedures over the information in the Minister's report.

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.

Ajay Sharma
Audit New Zealand
On behalf of the Auditor‑General
Wellington, New Zealand

Departmental financial statements#

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Statement of Comprehensive Revenue and Expenses

for the year ended 30 June 2024

2022/23 Actual $000		Note	2023/24 Actual $000	2023/24 Unaudited Budget $000	2024/25 Unaudited Forecast $000
	REVENUE
154,095	Revenue Crown		128,156	111,923	111,422
2,161	Other Revenue	2	2,257	310	1,462
156,256	TOTAL REVENUE		130,413	112,233	112,884
	EXPENSES
66,549	Personnel Costs	3	66,615	66,653	63,559
405	Depreciation and Amortisation Expense	6	440	1,424	985
582	Capital Charge	4	592	612	675
53,347	Other Operating Expenses	5	40,398	43,544	47,665
120,883	TOTAL EXPENDITURE		108,045	112,233	112,884
35,373	NET SURPLUS/(DEFICIT)		22,368	-	-
-	Other Comprehensive Revenue and Expenses		-	-	-
35,373	TOTAL COMPREHENSIVE REVENUE AND EXPENSES		22,368	-	-

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

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

Statement of Changes in Equity

for the year ended 30 June 2024

2022/23 Actual $000		2023/24 Actual $000	2023/24 Unaudited Budget $000	2024/25 Unaudited Forecast $000
11,640	Balance at 1 July	11,848	11,848	14,708
35,373	Surplus for the Year	22,368	-	-
208	Capital Injection	2,860	2,860	93
(35,373)	Return of Operating Surplus to the Crown	(22,368)	-	-
11,848	BALANCE AT 30 JUNE	14,708	14,708	14,801

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

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

Statement of Financial Position

as at 30 June 2024

2022/23 Actual $000		Note	2023/24 Actual $000	2023/24 Unaudited Budget $000	2024/25 Unaudited Forecast $000
	ASSETS
	CURRENT ASSETS
5,958	Cash and Cash Equivalents		10,453	19,155	10,000
63,719	Debtor Crown		35,706	9,055	22,529
550	Debtors and Other Receivables		1,081	500	544
154	Prepayments		116	-	154
307	Inventory		328	199	307
70,688	TOTAL CURRENT ASSETS		47,684	28,909	33,534
	NON-CURRENT ASSETS
1,504	Property, Plant and Equipment	6	5,999	3,223	5,011
29	Intangible Assets	6	11	14	5
1,533	TOTAL NON-CURRENT ASSETS		6,010	3,237	5,016
72,221	TOTAL ASSETS		53,694	32,146	38,550
	LIABILITIES
	CURRENT LIABILITIES
18,903	Creditors and Other Payables	7	10,981	14,506	18,975
35,373	Provision for Repayment of Surplus		22,368	-	-
5,715	Employee Entitlements	8	5,353	2,632	4,774
59,991	TOTAL CURRENT LIABILITIES		38,702	17,138	23,749
	NON-CURRENT LIABILITIES
382	Employee Entitlements	8	284	300	-
382	TOTAL NON-CURRENT LIABILITIES		284	300	-
60,373	TOTAL LIABILITIES		38,986	17,438	23,749
11,848	NET ASSETS		14,708	14,708	14,801
	EQUITY
11,848	Taxpayers' Funds	10	14,708	14,708	14,801
11,848	TOTAL EQUITY		14,708	14,708	14,801

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

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

Statement of Cash Flows

for the year ended 30 June 2024

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

2022/23 Actual $000		2023/24 Actual $000	2023/24 Unaudited Budget $000	2024/25 Unaudited Forecast $000
	CASH FLOWS FROM OPERATING ACTIVITIES
125,932	Receipts from the Crown	156,169	111,923	122,951
10,969	Receipts from Other Revenue	2,029	310	1,462
(57,192)	Payments to Suppliers	(45,883)	(43,626)	(47,750)
(65,323)	Payments to Employees	(66,487)	(66,571)	(63,474)
(582)	Payments for Capital Charge	(592)	(612)	(675)
7,624	Goods and Services Tax (net)	(3,089)	-	-
21,428	NET CASH FLOWS FROM OPERATING ACTIVITIES	42,147	1,424	12,514
	CASH FLOWS FROM INVESTING ACTIVITIES
6	Receipts from Sale of Property, Plant, and Equipment	-	-	-
(560)	Purchase of Property, Plant and Equipment	(5,139)	(2,960)	(193)
(554)	NET CASH FLOWS FROM INVESTING ACTIVITIES	(5,139)	(2,960)	(193)
	CASH FLOWS FROM FINANCING ACTIVITIES
(33,226)	Repayment of Net Surplus to the Crown	(35,373)	-	(12,414)
208	Capital Contribution	2,860	2,860	93
(33,018)	NET CASH FROM FINANCING ACTIVITIES	(32,513)	2,860	(12,321)
(12,144)	Net Increase/(Decrease) in Cash and Cash Equivalent	4,495	1,324	-
18,102	Cash and Bank Balances at the Beginning of the Year	5,958	17,831	10,000
5,958	CASH AND BANK BALANCES AT YEAR END	10,453	19,155	10,000

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

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

Statement of Commitments

as at 30 June 2024

Capital commitment

At 30 June 2024, the Department has no capital commitments (2023: 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 23 Kate Sheppard Place. In Auckland, office space is leased from another government agency for Auckland-based DPMC and 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.

2022/23 Actual $000		2023/24 Actual $000
	OPERATING COMMITMENTS
	NON-CANCELLABLE OPERATING LEASE COMMITMENTS
698	No later than one year	2,552
172	Later than one year and not later than 5 years	10,208
391	Later than five years	2,548
1,261	TOTAL NON-CANCELLABLE OPERATING LEASE COMMITMENTS	15,308

Statement of Contingent Liabilities and Contingent Assets

as at 30 June 2024

Contingent liabilities

At 30 June 2024 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 2024, and no provision has been made (2023: Two).

Contingent assets

At 30 June 2024, the Department has no contingent assets (2023: 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 2024

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.

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 2024 and were approved for issue by the Chief Executive on 30 September 2024.

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 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 base

The Departmental Financial Statements have been prepared on a historical-cost basis.

The accrual basis of accounting has been used.

Functional and presentation currency

The Departmental Financial Statements 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.

Standards issued and not yet effective and not early adopted

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

• Amendments to PBE IPSAS 1 Presentation of Financial Reports - Disclosure of Fees for Audit Firms' Services
  
  The amendments to PBE IPSAS 1 aim to address concerns about the quality and consistency of disclosures an entity provides about fees paid to its audit or review firm for different types of services.
  
  The enhanced disclosures are expected to improve the transparency and consistency of disclosures about fees paid to an entity's audit or review firm.
  
  Application of these amendments is required for accounting periods beginning on or after 1 January 2024.
  
  The Department does not anticipate these amendments to have a significant impact on its financial statements.

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 relate to 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 below.

Revenue Crown - departmental

Revenue from the Crown is measured based on the Department's funding entitlement for the reporting period. The funding entitlement is established by Parliament when it passes the Appropriation 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.

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 2024 budget figures are consistent with the Department's best estimate financial forecast information submitted to the Treasury for the 2023 Budget Economic and Fiscal Update (BEFU) for the year ending 30 June 2024.

The 2025 forecast figures are for the year ending 30 June 2025, which are consistent with the best estimate financial forecast information submitted to the Treasury for the 2024 BEFU for the year ending 30 June 2025.

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 2025 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 2024.

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 2025 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 2024/25 year. The forecast figures have been compiled on the basis of existing government policies and ministerial expectations at the time the Estimates of Appropriations 2024/25 were finalised.

The main assumptions which were adopted as at 5 April 2024 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 2025 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 2024/25 Actual Financial Statements include changes to the baseline budget through new initiatives, transfer of funding across financial years or technical adjustments.

Comparatives

When a presentation or classification of an item in the Departmental Financial Statements is amended or an accounting policy is 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

2022/23 Actual $000		2023/24 Actual $000
1,929	Revenue Department - Other Government Agencies[15]	961
232	Third Party - Other Revenue	1,296
2,161	TOTAL OTHER REVENUE AND GAINS	2,257

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.

2022/23 Actual $000		2023/24 Actual $000
62,261	Salaries and Wages	63,362
1,766	Employer Contributions to Defined-Contribution Plans	1,860
998	Increase/(Decrease) in Employee Entitlements	333
1,524	Other[16]	1,060
66,549	TOTAL PERSONNEL COSTS	66,615

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 2024 was 5% (2023: 5%).

5. Other Operating Expenses

2022/23 Actual $000		2023/24 Actual $000	2023/24 Unaudited Budget $000	2024/25 Unaudited Forecast $000
12,445	Shared Services	12,550	12,469	11,735
8,418	Consultancy	8,527	7,548	7,986
6,306	Tsunami Monitoring and Detection Network Maintenance	7,106	6,047	5,283
3,894	Premises Rental	2,940	5,110	4,022
3,128	Travel Costs	1,980	3,525	2,432
977	Promotion and Publicity Costs	1,180	1,033	983
672	Building and Ground Maintenance Costs	670	762	775
5,561	Grants & Sponsorship	611	3,501	1,117
2,035	IT-related Costs	603	713	3,538
453	Cell Phone and Telephone	563	469	425
346	Facilities Costs	560	338	371
43	Net (gain)/loss on Disposal of Property, Plant and Equipment	222	-	-
327	Photocopying and Printing Costs	201	233	230
123	Audit Fees for Audit of Financial Statements	159	141	159
5,401	COVID-19 Advertising Costs	-	-	-
3,218	Other Operating Expenses	2,526	1,655	8,609
53,347	TOTAL OTHER OPERATING COSTS	40,398	43,544	47,665

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 on all property, plant, and equipment, other than land, at rates that will write off the cost (or valuation) of the assets to their estimated residual values over their useful lives. The useful lives and associated depreciation rates of major classes of property, plant, and equipment 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

The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each balance date.

Additions

The cost of an item of property, plant, and equipment is recognised as an asset only when it is probable that future economic benefits or service potential associated with the item will flow to DPMC and the cost of the item can be measured reliably.

Work in progress is recognised at cost less impairment and is not depreciated.

In most instances, an item of property, plant, and equipment is initially recognised at its cost. Where an asset is acquired through a nonexchange transaction, it is recognised at its fair value as at the date of acquisition.

Disposals

Gains and losses on disposals are determined by comparing the disposal proceeds with the carrying amount of the asset. Gains and losses on disposals are included in surplus or deficit. When a revalued asset is sold, the amount included in the property revaluation reserve in respect of the disposed asset is transferred to taxpayers' funds.

Subsequent costs

Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to DPMC and the cost of the item can be measured reliably.

The costs of day-to-day servicing of property, plant, and equipment are recognised in surplus or deficit as they are incurred.

Impairment

Property, plant, and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount might not be recoverable. An impairment loss is recognised for the amount that the asset's carrying amount exceeds its recoverable service amount. The recoverable service amount is the higher of an asset's fair value less costs to sell and value in use.

Value in use is determined using an approach based on either a depreciated replacement cost approach, a restoration cost approach, or a service units approach. The most appropriate approach used to measure value in use depends on the nature of the impairment and availability of information.

The total impairment loss is recognised in surplus or deficit.

Intangible assets

Software acquisition and development

Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire the specific software and bring it to use.

Costs that are directly associated with the development of software for internal use are recognised as an intangible asset. Direct costs include the costs of services, software development employee costs, and an appropriate portion of relevant overheads.

Staff training costs are recognised as an expense when incurred.

Costs associated with maintaining computer software are recognised as an expense when incurred.

Costs of software updates or upgrades are capitalised only when they increase the usefulness or value of the software.

Costs associated with development and maintenance of the Ministry's website are recognised as an expense when incurred.

Amortisation

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 the asset is available for use and ceases at the date that the asset is derecognised. The amortisation charge for each financial year is recognised in surplus or deficit.

The useful lives and associated amortisation rates of major classes of intangible assets have been estimated as follows:

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

Impairment

Intangible assets subsequently measured at cost that have an indefinite useful life or that are not yet available for use are tested annually for impairment, irrespective of whether there is any indicator of impairment.

	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 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
Additions	-	-	5,139		5,139	-
Disposals	(420)	-	-	(532)	(952)	(21)
Transfers	4,210	-	(4,487)	277	-	-
Other Movements	-	-	-	-	-	-
BALANCE AT 30 JUNE 2024	4,765	44	865	2,201	7,875	4,692
ACCUMULATED DEPRECIATION AND IMPAIRMENT LOSSES
Balance at 1 July 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
Depreciation Expense	138	15	-	269	422	18
Disposals	(212)	-	-	(518)	(730)	(21)
Other Movements	-	-	-	-	-	-
BALANCE AT 30 JUNE 2024	426	18	-	1,432	1,876	4,681
CARRYING VALUE
At 1 July 2022	509	13	56	823	1,401	48
At 30 June 2023	475	41	213	775	1,504	29
At 30 June 2024	4,339	26	865	769	5,999	11

7. Creditors and Other Payables

2022/23 Actual $000		2023/24 Actual $000
	CREDITORS AND OTHER PAYABLES UNDER EXCHANGE TRANSACTIONS
10,114	Accrued Expenses	4,481
2,367	Payables	2,372
12,481	TOTAL CREDITORS AND OTHER PAYABLES UNDER EXCHANGE TRANSACTIONS	6,853
	CREDITORS AND OTHER PAYABLES UNDER NON-EXCHANGE TRANSACTIONS
6,422	Taxes Payable to Inland Revenue	4,128
18,903	TOTAL CREDITORS AND OTHER PAYABLES	10,981

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.

2022/23 Actual $000		2023/24 Actual $000
	CURRENT EMPLOYEE ENTITLEMENTS
4,003	Annual Leave	3,384
1,323	Salary Accrual	1,509
160	Long Service Leave	208
99	Other Employee Benefits	112
118	Sick Leave	140
12	Retirement Leave	-
5,715	TOTAL CURRENT LIABILITIES	5,353
	NON-CURRENT EMPLOYEE ENTITLEMENTS
277	Long Service Leave	284
105	Retirement Leave	-
382	TOTAL NON-CURRENT LIABILITIES	284
6,097	TOTAL EMPLOYEE ENTITLEMENTS	5,637

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

2022/23 Actual $000		2023/24 Actual $000
35,373	NET SURPLUS (DEFICIT)	22,368
	ADD/(LESS) NON-CASH ITEMS
405	Depreciation and Amortisation	440
405	TOTAL NON-CASH ITEMS	440
	ADD/(LESS) WORKING CAPITAL MOVEMENT
(19,352)	(Increase)/Decrease in Receivables and Prepayments	27,520
(18)	(Increase)/Decrease in Inventories	(21)
(4,180)	Increase/(Decrease) in Creditors and Other Payables	(4,835)
7,606	Increase/(Decrease) in GST	(3,087)
1,125	Increase/(Decrease) in Employee Entitlements	(362)
(14,819)	TOTAL NET MOVEMENT IN WORKING CAPITAL ITEMS	19,215
39	Add/(Less) Movements in Non-current Liabilities	(98)
	ADD/(LESS) ITEMS CLASSIFIED AS INVESTING OR FINANCING ACTIVITIES
43	(Gain)/losses on disposal of property, plant, and equipment	222
387	Other Financial Asset	-
21,428	NET CASH FLOWS FROM OPERATING ACTIVITIES	42,147

10. Equity

Accounting policy

Equity is the Crown's investment in the Department and is measured as the difference between total assets and total liabilities. Equity is classified as taxpayers' funds.

2022/23 Actual $000		2023/24 Actual $000
	Taxpayers' Funds
11,640	Balance as at 1 July	11,848
35,373	Surplus	22,368
208	Capital injections	2,860
(35,373)	Return of operating surplus to the Crown	(22,368)
11,848	Balance as at 30 June	14,708

11. Related-party Transactions

Accounting policy

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

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

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

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

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

2022/23 Actual $000		2023/24 Actual $000
3,203	Remuneration	3,286
8	Full-time Equivalent Staff	9

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 (2023: Nil).

12. Explanations of Major Variances Against Budget

Explanations for major variances between the Department's original 2023/24 budget figures and the 2023/24 year actuals are as follows:

Revenue

Revenue was higher than budgeted by $18.180 million due to decisions made since the 2023/24 Budget.

These mainly relate to:

• increased funding due to transfers from the prior year for DART buoys' maintenance, North Island severe weather events extraordinary costs, Emergency Mobile Alerting midlife upgrade, several Emergency Management and Cyber Security initiatives, mis/disinformation programme and Cyber Security ($13.855 million)
• new funding approved for national security costs ($4.000 million), and
• contributions from other departments including contributions to the Policy Project and the MFAT Pacific Partnership programme ($1.947 million).

This was offset by various Fiscally Neutral and Technical Adjustments ($1.322 million) and a return of underspend for COVID-19 Service Recognition ($0.300 million).

Expenditure

Expenditure was lower than budgeted by $4.188 million mostly due to coordinating responses to the:

• 2023 North Island extreme weather events ($8.017 million), and
• Royal Commission of Inquiry into the Terrorist Attacks on Christchurch Mosques on 15 March 2019 ($4.192 million).

Offsetting the lower expenditure was higher expenditure relating to funding approved since Budget 2023, including:

• mis/disinformation programme ($2.279 million)
• support and maintenance of the Tsunami monitoring and detection network ($1.922 million)
• MFAT Pacific Partnership programme ($1.056 million)
• emergency mobile alerting where the budget came through an In-Principle Expense Transfer confirmed as part of the October Baseline Update ($1.725 million), and
• Government House operating costs ($1.161 million).

Balance sheet

Total assets exceeded the 2023/24 Budget by $21.548 million mainly due to a larger debtor Crown balance than expected as operating expenditure was lower than anticipated in the 2023/24 Supplementary Estimates which resulted in lower cash drawn from the Crown and a higher year end Crown revenue receivable. Mostly offsetting this, total liabilities exceeded 2023/24 budget by $21.548 million reflecting provision for repayment of the 2023/24 operating surplus ($22.368 million) and higher employee entitlements provision than assumed in the initial budget ($3.498 million), offset by lower accounts payable than assumed in the initial budget ($4.318 million).

Cash flow

Receipts from the Crown exceeded budget by $44.246 million mainly due to increases approved through the 2023/24 Supplementary Estimates and cash drawn to repay the previous year underspend, and receipts from other departments exceeding budget ($1.719 million).

This was offset by repayment of the previous year surplus ($35.373 million) while the budget assumed no surplus and net GST recovered was lower than assumed in the initial budget ($3.089 million).

13. Events After the Balance Date

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

Non-departmental financial schedules#

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Schedule of Non-departmental Expenses

for the year ended 30 June 2024

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

2022/23 Actual $000		2023/24 Actual $000	2023/24 Unaudited Budget $000
34,486	Grants and Contributions	823,480	24,434
44,707	Increase to Provisions for emergency events	17,810	-
3,121	Depreciation	3,141	3,489
3,851	Other Operating Costs	4,740	2,708
2,650	Goods and Services Tax	49,163	20,094
88,815	TOTAL NON-DEPARTMENTAL EXPENSES	898,334	50,725

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

Schedule of Non-departmental Revenue and Receipts

for the year ended 30 June 2024

2022/23 Actual $000		2023/24 Actual $000	2023/24 Unaudited Budget $000
8,371	Other Revenue	6,125	3,859
8,371	TOTAL NON-DEPARTMENTAL REVENUE AND RECEIPTS	6,125	3,859

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

Schedule of Non-departmental Assets and Liabilities

as at 30 June 2024

2022/23 Actual $000		Note	2023/24 Actual $000	2023/24 Unaudited Budget $000
	ASSETS
	CURRENT ASSETS
8,971	Cash in Bank		9,000	29,848
11	Debtors and Other Receivables		21	3,200
8,982	TOTAL CURRENT ASSETS		9,021	33,048
	NON-CURRENT ASSETS
167,395	Property, Plant and Equipment	2	165,360	183,692
167,395	TOTAL NON-CURRENT ASSETS		165,360	183,692
176,377	TOTAL NON-DEPARTMENTAL ASSETS		174,381	216,740
	LIABILITIES
	CURRENT LIABILITIES
15,317	Creditors and Other Payables		8,712	1,700
59,591	Provisions	3	499,730	300,000
74,908	TOTAL CURRENT LIABILITIES		508,442	301,700
	NON-CURRENT LIABILITIES
-	Provisions	3	87,431	-
-	TOTAL NON-CURRENT LIABILITIES		87,431	-
-	TOTAL LIABILITIES		595,873	-
	REVALUATION RESERVES
86,652	Property Revaluation Reserves		86,901	105,809
86,652	TOTAL REVALUATION RESERVES		86,901	105,809

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

Schedule of Non-departmental Commitments

as at 30 June 2024

As at 30 June 2024, there are no operating commitments in Vote Prime Minister and Cabinet (2023: Nil).

As at 30 June 2024, there are no capital commitments in Vote Prime Minister and Cabinet (2023: 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 2024

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 2024.

Contingent liabilities - quantifiable

As at 30 June 2024, there are no quantifiable contingent liabilities (2023: Nil).

Contingent assets - quantifiable

As at 30 June 2024, there are no quantifiable contingent assets (2023: 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 2024, there were 9 events (2023: 9) 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 $49.326 million has been made for costs that have been quantified for these and other emergency events (see Note 3) (2023: $59.591 million).

The contingency is available for qualifying situations that may occur in the future. The size of these potential claims is unable to be quantified.

The contingency is available for qualifying situations that may occur in the future. The size of these potential claims is unable to be quantified.

North Island Weather Events 2023 - Category 2 Risk Mitigation Projects and Regional Transport Projects

The Crown entered into agreements with some local authorities to help fund Category 2 Risk Mitigation and Regional Transport Projects following the North Island weather events in 2023. Funding in respect of the Category 2 Risk Mitigation Projects will be released subject to the milestones and conditions provided for in the applicable project funding agreement.

As at 30 June 2024, $891 million remains of the pledged support. At this stage, it is not known how much of this will be utilised by the development of project proposals that meet the business case requirements for the co-funding. The demand for the funding will be influenced by the local authority's ability to fund their share of projects.

Contingent assets - unquantifiable

As at 30 June 2024 there are no unquantifiable contingent assets (2023: Nil).

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

Notes to the Non-departmental financial schedules#

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1. Statement of accounting policies

Reporting entity

These non-departmental schedules present financial information on public funds that the Department manages on behalf of the Crown.

These non-departmental balances are consolidated into the Financial Statements of the Government for the year ended 30 June 2024. For a full understanding of the Crown's financial position, results of operations, and cash flows for the year, refer to the Financial Statements of the Government for the year ended 30 June 2024.

Basis of preparation

The non-departmental schedules have been prepared in accordance with the accounting policies of the consolidated Financial Statements of the Government, Treasury Instructions, and Treasury Circulars.

Measurement and recognition rules applied in the preparation of these non-departmental statements and schedules are consistent with generally accepted accounting practice (Public Benefit Entity Accounting Standards) as appropriate for public benefit entities.

Presentation currency and rounding

The non-departmental schedules are presented in New Zealand dollars (NZ dollars), and all values are rounded to the nearest thousand dollars ($000).

Standards issued and not yet effective and not early adopted

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

• Amendments to PBE IPSAS 1 Presentation of Financial Reports - Disclosure of Fees for Audit Firms' Services
  
  The amendments to PBE IPSAS 1 aim to address concerns about the quality and consistency of disclosures an entity provides about fees paid to its audit or review firm for different types of services.
  
  The enhanced disclosures are expected to improve the transparency and consistency of disclosures about fees paid to an entity's audit or review firm.
  
  Application of these amendments is required for accounting periods beginning on or after 1 January 2024.
  
  The Department does not anticipate these amendments to have a significant impact on its financial statements.

Critical accounting estimates and assumptions

In preparing these non-departmental schedules, 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 2 Property, Plant and Equipment) and the Non-departmental provisions for emergencies (see Note 3 Provisions).

Summary of significant accounting policies

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

Donated assets

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 if it meets the capitalisation value threshold.

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.

2. 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 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
Additions	-	-	-	-	858	-	858
Disposals	-	-	-	-	-	-	-
Transfers	-	177	10	70	(529)	272	-
Other Movements	-	(1)	-	-	-		(1)
Revaluation*	-	-	243	-	-	-	243
BALANCE AT 30 JUNE 2024	81,548	65,147	4,697	21,987	640	2,212	176,231
ACCUMULATED DEPRECIATION AND IMPAIRMENT LOSSES
BALANCE AT 1 JULY 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
Depreciation Expense	-	846	-	2,185	-	110	3,141
Transfers	-	-	-	-	-	(6)	(6)
Disposals	-	-	-	-	-	-	-
Other Movements	-	-	-	-	-	-	-
Revaluation write back	-	-	-	-	-	-	-
BALANCE AT 30 JUNE 2024	-	846	-	8,477	-	1,548	10,871
CARRYING VALUE
At 1 July 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
At 30 June 2024	81,548	64,301	4,697	13,510	640	664	165,360

* Some items classified as fixtures and fittings were transferred to the ‘Antiques and Artworks' category and were subject to revaluation. Since antiques and artworks are not subject to depreciation, the write-back of the accumulated depreciation associated with these items is presented as part of the revaluation movements within the cost section.

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	3-100 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.

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 collection of antiques and artwork was revalued as at 30 June 2024 by an independent registered valuer, James Parkinson of Dunbar Sloane Limited.

The carrying value of revalued assets is 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.

3. Provisions

	Emergency Expensesa $000	Future of Severely Affected Locationsb $000	Total Provisions $000
Balance at 1 July 2023	59,591	-	59,591
Additional Provision Recognised - New events	27	791,960	791,987
Changes to Provision - Previous events	17,783	(13,500)	4,283
Payments Made During the Year/Provision Used for the Year	(28,075)	(240,625)	(268,700)
Balance at 30 June 2024	49,326	537,835	587,161
Current Portion of the Provision	49,326	450,404	499,730

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 (CDEM) 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, stormwater and potable water infrastructure is typically 60% of the total cost for valid and eligible work.

a. 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:

• $5.383 million for Marlborough/Nelson Flooding in August 2022
• $25.290 million for the North Island severe weather events in January/February 2023
• $11.762 million for Marlborough flooding in July 2021
• $4.267 million for the cost of the Crown's contribution to support the Buller District Council in repairs associated with flooding events of July 2021 and February 2022
• $0.753 million for Ashburton/Canterbury flooding in May/June 2021
• $1.665 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
• $0.179 million for Southland flooding in February 2020
• $0.015 million for Auckland Garden City Lodge fire in April 2024, and
• $0.012 million for Wairoa flooding in April 2024.

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.

b. Future of Severely Affected Locations Category 2 and 3 (FOSAL)

The FOSAL provision records the estimated cost of likely claims from local authorities for the Crown's contribution towards the cost of Risk Mitigation and Regional Transport Projects (Category 2) and voluntary property buyouts (Category 3) following the 2023 North Island extreme weather events.

The FOSAL provision comprises:

• $390.410 million related to voluntary property buyouts following the 2023 North Island extreme weather events.
• $147.425 million related to Risk Mitigation Projects and Regional Transport Projects following the 2023 North Island extreme weather events.

These estimates totalling $537.835 million are based on funding agreements with the relevant local authorities. Of this balance, $450.404 million is reported as a current liability estimated to be settled within 12 months. A non‑current liability of $87.431 million is reported as the amount estimated to be settled in later years.

A number of factors generate uncertainties when estimating the timing and amounts of the future cost commitments. The provision reflects the agreed maximum obligation for Crown contributions to Local Authorities voluntary property buyouts. If the combination of the number of properties ultimately assessed as qualifying for inclusion within the programme, is lower than used in the negotiation, or the valuations are lower than estimated, or the take-up rate of offers is lower than estimated, or insurance proceed offsets are higher than estimated, the provision will be reduced to reflect the revised estimate. If the estimated cost of the programme, when assessments are completed, exceeds the amounts used in establishing the funding agreements, no increase to the provision will be made unless the maximum obligation set in the applicable funding agreement is renegotiated. Similarly any transfers between categories of the funding agreements require Ministerial approval. The Risk Mitigation and Transport projects provision is the estimated contribution towards approved projects. The timing and final costs incurred for these projects will impact on the use of the provision.

To recognise the uncertainty associated with the estimates included in the Future of Severely Affected Locations provision, an unquantified contingent liability has been reported in the Financial Statements.

4. Events after the Balance Date

There have been no events after the balance date of 30 June 2024 (2023: Nil).

Notes

Appendices#

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Tauāki pūtea

Cabinet Office statistics#

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for the year ended 30 June 2024

	2023/24 Actual	2022/23 Actual	2021/22 Actual
Meetings
Executive Council	30[17]	45	45
Cabinet	40[19]	45	50
Cabinet committees	122[19]	185	176
Summary cover sheets to Cabinet and Cabinet committee papers	1,229[19]	1,735	1,556
Submissions lodged by Ministers' offices by the Cabinet Office deadline	81%	81%	73%
Papers published by the close of business, two days before the meeting	90%[18]	93%	96%
Cabinet and Cabinet committee minutes	1,542[19]	2,096	1,964
Cabinet and Cabinet committee minutes requiring an amendment by the Cabinet Office[19]	5	3	10
Cabinet minutes published by the close of business, three days after the Cabinet meeting	98%	98%	96%
Cabinet Office circulars	14	7	2
Briefing seminars to departments, Ministers' offices and other interested parties on the Cabinet decision-making process	26	33	20
Enquiries and requests from Ministers' offices and departments about Cabinet papers and related information	129	119	86

Cabinet and Cabinet committee meeting statistics#

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for the year ended 30 June 2024

	Number of Meetings	Number of Agenda Items	Average Number of Items per Meeting
Executive Council	30[20]	237	8
Cabinet	40	288	7
Cabinet committee meetings
Cabinet 100-Day Plan Committee[21], [22]	7	31	4
Cabinet Appointments and Honours Committee	19	214	11
Cabinet Business Committee	13	72	5
Cabinet Economic Development Committee[23]	6	69	11
Cabinet Economic Policy Committee[21]	13	115	9
Cabinet Environment, Energy and Climate Committee[23]	2	9	4
Cabinet Expenditure and Regulatory Review Committee[21]	4	30	7
Cabinet External Relations and Security Committee[23]	2	7	3
Cabinet Extreme Weather Recovery Committee[23]	5	21	4
Cabinet Foreign Policy and National Security Committee[21]	4	18	4
Cabinet Government Administration and Expenditure Review Committee[23]	3	26	9
Cabinet Legislation Committee	20	223	11
Cabinet Māori Crown Relations: Te Arawhiti Committee[23]	2	6	3
Cabinet Priorities Committee[23]	1	2	2
Cabinet Social Outcomes Committee[21]	12	70	6
Cabinet Social Wellbeing Committee[23]	6	42	7
Cabinet Strategy Committee[21], [22]	3	9	3
TOTAL CABINET COMMITTEE MEETINGS	122	964	8

Following the 2023 General Election the incoming government made changes to the structure and terms of reference of committees.[21], [22], [23]

New Zealand Royal Honours#

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for the year ended 30 June 2024

The New Zealand Order of Merit
Dame Companion	4
Knight Companion	5
Companion	29
Officer	74
Member	122
The King's Service Order[24]
Companion	6
The King's Service Medal	42
The Queen's Service Order[24]
Companion	1
The Queen's Service Medal	40
The New Zealand Antarctic Medal
The New Zealand Antarctic Medal	1
The New Zealand Distinguished Service Decoration
The New Zealand Distinguished Service Decoration	3
TOTAL	327
Other honours and appointments
Grant of the title “The Right Honourable” for life	2
Grant of the title “The Honourable” for life	33
TOTAL	362

Areas of contribution for the New Year and the King's Birthday 2024 Honours Lists recipients #

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Area of contribution	Female	Another Gender	Male	Total
Arts and Media	20		17	37
Business and the Economy	7		15	22
Community, Voluntary and Local Services	63	1	55	119
Education	20		5	25
Health	16		22	38
Science and Technology	3		16	19
Services to the State	5		14	19
Sport and Recreation	25		23	48
TOTAL	159	1	167	327

Ethnicity of the New Year and the King's Birthday 2024 Honours Lists recipients #

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Ethnicity	Female	Another Gender	Male	Total	% of Lists
New Zealand European / European	97	1	122	220	67%
Māori	27		13	40	12%
Pacific Peoples	14		5	19	6%
Asian	8		6	14	4%
Middle Eastern / Latin America / African	1		2	3	1%
Unspecified	12		19	31	9%
TOTAL	159	1	167	327

Notes

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

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This report meets the requirement, set in the Vote Prime Minister and Cabinet Estimates and Supplementary Estimates of Appropriations for 2023/24, for information on Non-departmental Appropriations to be reported by the Minister for Emergency Management and 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 2023/24.

Extreme Weather Events - Regional and Local Support #

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This appropriation is intended to provide grants and other payments to support recovery from the sequence of 2023 North Island weather events.

What we achieved

Performance measure	Target 2023/24	Result 2022/23	Result 2023/24	Achieved
Payments to support recovery efforts are made in accordance with criteria (see Note 1)	100%	Not Applicable - No payments were made in 2022/23	100%	✔

Note 1 - The measure has been revised to better reflect the criteria that has been approved by Cabinet.

How much it cost

2022/23 Actual $000		2023/24 Actual $000	2023/24 Budget $000	2023/24 Supp. Estimates $000
-	Expenses	15,000	15,000	15,000

Flood Resilience Projects#

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This appropriation is intended to achieve the provision of funding from the Local Government Flood Resilience Co‑Investment Fund to support eligible flood risk mitigation initiatives.

What we achieved

Performance measure	Target 2023/24	Result 2022/23	Result 2023/24	Achieved
Payments made to support flood resilience co-investment projects are made in accordance with agreed criteria	100%	New measure	63%	✗

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

2022/23 Actual $000		2023/24 Actual $000	2023/24 Budget $000	2023/24 Supp. Estimates $000
-	Expenses	11,122	-	25,655

North Island Severe Weather Events#

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This appropriation is intended to achieve provision of funding for the Future of Severely Affected Locations (FOSAL) process under which the Crown will be providing councils with financial support to deliver a series of specified transport and flood risk mitigation infrastructure projects (category 2), and property buyouts (category 3).

What we achieved

Performance measure	Target 2023/24	Result 2022/23	Result 2023/24	Achieved
The Minister for Emergency Management and Recovery is satisfied with the advice and reporting on Future of Severely Affected Locations (FOSAL) implementation (Notes 1 and 2)	4	New measure	4.75	✔
Payments made to support Category 2 risk mitigation projects are made in accordance with agreed criteria (Note 1)	100%	New measure	100%	✔

Note 1 - This is a new appropriation. These performance measures were 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.

Note 2 - The Minister's/Governance Group's Satisfaction Survey measures satisfaction with the quality of policy advice and/or services on a scale from 1 to 5, where 1 means never met expectations and 5 means always exceeded expectations. The performance measure has been adjusted to reflect the portfolio name of the responsible Minister.

How much it cost

2022/23 Actual $000		2023/24 Actual $000
	Commenced: 27 September 2023
	Expires: 30 June 2028
-	Original Appropriation	1,722,524
-	Cumulative Adjustments	-
-	TOTAL ADJUSTED APPROPRIATION	1,722,524
-	Cumulative Actual Expenditure as at 1 July	-
-	Current-year Actual Expenditure	778,660
-	CUMULATIVE ACTUAL EXPENDITURE AS AT 30 JUNE	778,660
-	Appropriation Remaining as at 30 June	943,864

Local Authority Emergency Expenses PLA#

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

What we achieved

Performance measure	Target 2023/24	Result 2022/23	Result 2023/24	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

2022/23 Actual $000		2023/24 Actual $000	2023/24 Budget $000	2023/24 Supp. Estimates $000
49,138	Expenses	21,964	5,000	5,000