The Year at a Glance

significantly developed and enhanced its financial strategy through the four year planning process, holding to an agreed fixed budget baseline until 2020
developed a 10 year capital investment plan that is underpinned by asset management plans which adhere to the National Asset Management Standards (NAMS) requirements
continued to maintain a high score against all nine principles in the Chartered Institute of Public Finance and Accountancy Treasury Internal Controls Knowledge Survey (CIPFA Tick)
was notified that its Administrative and Support Services spend as a percentage of its Organisational Running Costs (ORC), was just below the upper quartile level of the 2013/14 Benchmarking Administrative and Support Services (BASS) large agency cohort.

relinquished some property holdings (ie Tongariro/Rangipo forest land and crop) reducing commercial and operational risk as well as reducing capital charge
consolidated the electronic monitoring contract to a single supplier which will result in better value for money
successfully implemented its Lifting Productivity and Performance in New Zealand’s Prisons restructure which will drive longer term sustainable efficiencies.

managed its $1.2 billion operating budget within 1% of appropriation (excluding remeasurements) despite financial pressures across the department’s operations
reinvested $20 million in initiatives designed to reduce re-offending
invested $263.2 million of capital spend including property and prison development projects
achieved a reduction in domestic travel expenditure of $1.1 million compared to budget through careful fiscal management and through the use of advanced AVL technology
improved controls around contractors and consultants resulting in a $0.8 million under spend against budget.

absorbed the financial impact of the Collective Bargaining Round, the Lifting Productivity and Performance in New Zealand’s Prisons restructure and incremental facilities costs such as rates increases, within the existing budget baseline
self-funded the increased depreciation costs related to the revaluation of land and buildings as at 30 June 2014
absorbed the impact of volatile commodity prices associated with offender employment activities, in particular the impact that significant reduction in milk prices had on revenue from dairy operations
self-funded the cost pressure and business impact resulting from the breach of temporary release incident.