Summary Annual Report 2009

Financial summary

This summary provides an overview of the NZTA’s financial results for the year ended 30 June 2009.

• Summary statement of financial performance
• Summary statement of financial position
• Summary statement of cash flows
• Notes to the financial summary

 

Summary statement of financial performance

This statement shows the income we received and how the money was spent over the period 1 July 2008 to 30 June 2009.

	Actual $000	Budget $000
Our source of income is:	79,068	96,000
Income from the Crown	1,792,000	2,003,601
Income from the National Land Transport Fund (NLTF)	112,966	104,927
Income from third parties	1,984,034	2,204,528
Total income
This income contributes to:
Activities the NZTA delivers1	275,691	284,931
Funding the National Land Transport Programme (NLTP) and depreciation on state highway assets2	1,602,752	1,702,170
Funding Crown specific activities3	20,431	33,000
Total expenditure	1,898,874	2,020,101
Net surplus for the year	85,160	184,427

Notes
¹ Activities the NZTA is accountable for and either delivers in-house or contracts out the service.
² Funding the NZTA provides to approved organisations for the delivery of services, and funding the NZTA receives for the improvement and maintenance of the state highway network.
³ Funding provided by the Crown for specific activities, which are either delivered by the NZTA or the NZTA allocates funding for the activity.

The NZTA has recorded a net surplus of $85.2 million, compared with a budgeted surplus of $184.4 million. The difference between the actual and budgeted surplus is explained below.

	Above budget $000	Below budget $000
Income from the Crown		(16,932)
Income we receive from the NLTF		(211,601)
Income we receive from third parties	8,039
Spending on activities the NZTA delivers		9,240
Spending on the NLTP and state highway depreciation		99,418
Spending on specifi c Crown projects		12,569

• Total income received was less than budgeted, mainly due to the deferral of $250 million of NLTF revenue to 2009/10 as it was deemed surplus to requirements for the current year and therefore left in the NLTF.
• NLTP expenditure was $99.4 million below budget because more costs were capitalised.

The Crown measures our activities in terms of output classes. This graph shows our spending on the key output classes.

View high resolution (JPG, 109 KB)

 

Summary statement of financial position

This statement shows what we own (assets), what we owe (liabilities) and our closing equity as at 30 June 2009.

	Actual $000	Budget $000
Current assets	628,660	696,479
Non-current assets	24,102,583	20,781,331
Total assets	24,731,243	21,477,810
Current liabilities	416,130	343,170
Non-current liabilities	2,713	2,625
Total liabilities	418,843	345,795
Total equity/net assets	24,312,400	21,132,015

The major components of our net assets include:

Working capital	212,530
Property plant and equipment	17,762
Intangible assets	18,002
State highway network	24,066,819

• The increase in our assets is mainly due to the $3.3 billion increase in the value of state highways, following a revaluation of our network and $1.2 billion spending on state highways.

	Actual $000	Budget $000
Equity as at 1 July 2008	21,150,502	20,188,585
Net surplus for the year	85,160	184,427
Increase in the valuation of the state highways	2,290,020	0
Capital contribution from the Crown	786,718	759,003
Equity as at 30 June 2009	24,312,400	21,132,015

Our closing equity comprises:

General funds	25,785
Retained funds – Operations	23,926
Retained funds – NLTP and Crown	635,004
State highway	23,642,614
Third party funded activities	(14,929)

Operations retained funds will be used to fund the costs of the merger.
• NLTP and Crown retained funds includes $183.5 million available for allocation to approved organisations in 2009/10, and $449.9 million of assets are to be transferred to state highway assets in 2009/10.
• An improved asset valuation process is reflected in the revaluation of state highways.
• The NZTA is working to a plan to manage the third party funded activities that are in deficit.

Summary statement of cash flows

This statement shows how we received and used our cash during the year.

	Actual $000	Budget $000
Net cash from operating activities	467,326	239,187
Net cash from investing activities	(1,220,728)	(1,046,070)
Net cash from fi nancing activities	783,753	759,003
Net (decrease)/increase in cash and cash equivalents	30,351	(47,880)

• Our operating activities generate cash inflows and the primary source is from the NLTF (88 percent). Most of the net cash inflows from these operating activities fund the NLTP.
• Our investing activities generate cash outflows and the primary use was in investing $1.2 billion on state highways.
• Our financial activity cash inflows include capital contributions towards state highways.

Notes to the financial summary

• The disclosures included in the financial summary have been extracted from the NZTA’s 2008/09 annual report, which was approved by the Board on 30 October 2009. The annual report was audited by Audit New Zealand, who issued an unqualified opinion on 30 October 2009.
• The financial statements of the NZTA have been prepared in accordance with the requirements of the Crown Entities Act 2004, which includes the requirements to comply with New Zealand generally accepted accounting practice (GAAP) and comply with New Zealand equivalents to IFRS and other applicable financial reporting standards, as appropriate for public benefit entities. The financial statements include a statement of compliance to this effect.
• The financial summary is presented in New Zealand dollars and all values are rounded to the nearest thousand dollars.
• The NZTA is a new entity formed on 1 August 2008. However, the Board has adopted 1 July 2008 as the starting date for reporting purposes under the Land Transport Management Amendment Act 2008.
• No comparative figures are provided, as the 2008/09 annual report is the first report of the NZTA.
• The financial summary cannot be expected to provide as complete an understanding as provided by the annual report. A copy of the annual report is available online at www.nzta.govt.nz.
• The financial summary was authorised for issue on 20 November 2009 by Brian Roche, Board Chair, and Garry Moore, Deputy Chair.

 

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