Memorandum Accounts for the Year Ended 30 June 2004
Memorandum accounts are notional accounts to record the accumulated balance of surpluses and deficits incurred for outputs operating on a full cost recovery basis. They are intended to provide a long-run perspective to the pricing of outputs.
| | Opening
Balance
1 July 2003 | Movement
During
2003/2004 | Closing
Balance
30 June 2004 |
| | $000 | $000 | $000 |
| Memorandum Account | | | |
| Vote: Commerce | | | |
| Registration and Provision of Statutory Information | 24,639 | 447 | 25,086 |
| Registration and Provision of Statutory Information | | | |
| Motor Vehicle Traders Register and Information Programme | - | (79) | (79) |
| Vote: Communications | | | |
| Management and Enforcement of Radiocommunications Act | 8,442 | 3,187 | 11,629 |
| Vote: Consumer Affairs | | | |
| Policy Advice and Support on Consumer Issues | | | |
| Motor Vehicle Traders Register and Information Programme | - | (316) | (316) |
| Vote: Energy | | | |
| Administration of Gas and Electricity Regulations | | | |
| Operations of Electrical Workers Registration Board | 530 | 360 | 890 |
This statement is to be read in conjunction with the Statement of Accounting Policies and Notes to the Financial Statements.
Action Taken to Address Surpluses
Registration and Provision of Statutory Information
The impact of substantial overall increases in volumes within the Companies Office is being incorporated in the 10-year strategy model to address the impact of the shift from annual to electronic services and the fee adjustment required to meet the long term strategy to reduce the memorandum account. Volumes have continued to exceed forecast and this has resulted in a surplus for the year. A new fees structure has been implemented on 1 July 2004.
Annual reviews will be undertaken to incorporate any volume impacts and to ensure this strategy is successful.
Motor Vehicle Traders Register and Information Programme
A fee strategy has been agreed to whereby the amortised costs associated with establishing the register and undertaking a mixed media education campaign and ongoing client communication and training will be recovered over a five year period to 2007/2008 through registration fee surpluses.
Management and Enforcement of the Radiocommunications Act
As a result of the review undertaken within the Radio Spectrum Management Group in 2002/2003, a fees review proposing a new fee structure to reflect the shift in strategic direction and business process and accurately assess the cost structure of the new group was implemented in the 2003/2004 financial year. The full impact of the fees review will be reflected in the 2004/2005 year as the 2003/2004 year contains the impact of unearned income recognition for revenue received through the 2002/2003 year under the previous fees regime.
This strategy to reduce the memorandum account will be reviewed annually.
Operations of Electrical Workers Registration Board (EWRB)
A review of the current costs and fees structure will commence in the 2004/2005 financial year which will include a strategy for reducing the memorandum account.
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