Memorandum Accounts for the Year Ended 30 June 2006
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 2005
$000 |
Movement
During
2005/06
$000 |
Closing
Balance
30 June 2006
$000 |
| Memorandum Account |
|
|
|
| Vote: Commerce |
|
|
|
| Registration and Provision of Statutory Information |
19,660 |
(7,233) |
12,427 |
| Registration and Provision of Statutory Information - Motor Vehicle Traders Register and Information Programme |
256 |
371 |
627 |
| Registration and Granting of Intellectual Property Rights |
2,552 |
1,827 |
4,379 |
| Vote: Communications |
|
|
|
| Management and Enforcement of Radiocommunications Act 1989 |
9,104 |
(1,931) |
7,173 |
| Vote: Consumer Affairs |
|
|
|
| Policy Advice and Support on Consumer Issues - Motor Vehicle Traders Register and Information Programme |
(223) |
96 |
(127) |
| Vote: Energy |
|
|
|
| Administration of Gas and Electricity Regulations - Operations of Electrical Workers Registration Board |
1,124 |
671 |
1,795 |
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 has been incorporated in a 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 continue to 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 2007/08, through registration fee surpluses.
Registration and Granting of Intellectual Property Rights
A memorandum account was established under this output expense in 2004/05 to accumulate a surplus balance to the year 2010 when the impact of changes in the timing of the fee receipts brought into effect by the Trade Marks Act 2002. From 2010-2017, it is anticipated that there will be fluctuations in revenue levels resulting in deficits in this period.
Management and Enforcement of the Radiocommunications Act 1989
As a result of the review undertaken within the Radio Spectrum Management Group in 2002/03, 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 has been undertaken, with a new fee structure implemented in 2004/05 and 2005/06. A revised fees schedule, based on ongoing reviews and continuation of the longer-term strategy for reducing the memorandum account, is due to be implemented in 2007/08.
This strategy to reduce the memorandum account is reviewed annually.
Operations of Electrical Workers Registration Board (EWRB)
A review of the current costs and fees structure has been undertaken, which includes a strategy for reducing the memorandum account. The activities of this output expense are to be transferred to the Department of Building and Housing in 2006/07.
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