Forecast of Memorandum Accounts Balances
for the Period Ending 30 June 2005
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.
| | Estimated Closing Balance
30 June 2004 | Forecast Closing Balance 30 June 2005 |
| | $000 | $000 |
| Vote Commerce | | |
| Registration and Provision of Statutory Information | | |
| Opening Balance 1 July | 24,639 | 23,509 |
| Forecast annual surplus/(deficit)11 | 277 | (6,388) |
| Other movements | | |
| - | ASRB related activities funded from financial reporting fees | (684) | (753) |
| - | Securities Commission related activities funded from financial reporting fees and prospectus registration fees |
(723) |
(534) |
| Closing Balance 30 June | 23,509 | 15,834 |
| | | |
| Motor Vehicle Traders register and Information Programme: | | |
| Vote Commerce | | |
| Registration and Provision of Statutory Information | | |
| Opening Balance 1 July | - | (85) |
| Forecast annual surplus/(deficit) | (85) | 18 |
| Closing Balance 30 June | (85) | (67) |
| Vote Consumer Affairs | | |
| Policy Advice and Support on Consumer Issues | | |
| Opening Balance 1 July | - | (310) |
| Forecast annual surplus/(deficit) | (310) | 100 |
| Closing Balance 30 June | (310) | (210) |
| Vote Commerce | | |
| Administration of Licensed Building Practitioners | | |
| Opening Balance 1 July | - | - |
| Forecast annual surplus/(deficit) | - | (2,512) |
| Closing Balance 30 June | - | (2,512) |
| Vote Communications | | |
| Management and Enforcement of Radiocommunications Act 1989 | | |
| Opening Balance 1 July | 8,442 | 10,142 |
| Forecast annual surplus/(deficit)12 | 1,700 | (2,300) |
| Closing Balance 30 June | 10,142 | 7,842 |
| Vote Energy | | |
| Administration of Gas and Electricity Regulations | | |
| - | Operations of Electrical Workers Registration Board | | |
| Opening Balance 1 July | 530 | 567 |
| Forecast annual surplus/(deficit)13 | 37 | 37 |
| Closing Balance 30 June | 567 | 604 |
Action Taken to Address Surpluses in the Memorandum Accounts
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.
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.
Administration of Licensed Building Practitioners
These activities are subject to the passing of the Building Bill legislation. A fee strategy will be established following the passing of the Building Bill, whereby the amortised costs associated with establishing a register and undertaking a education campaign and ongoing client communication and training will be recovered over a period from 2006/2007 through registration fee surpluses.
Management and Enforcement of Radiocommunications Act 1989
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 is to be undertaken. Subject to Cabinet approval, this will be implemented during the 2004/2005 financial year.
This will include a longer-term strategy for reducing the memorandum account.
Administration of Gas and Electricity Regulations
A review of the current costs and fees structure will commence in 2003/2004 which will include a strategy for reducing the memorandum account.
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