Memorandum Accounts for the Year Ended 30 June 2007
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 2006
$000 |
Movement During
2006/07
$000 |
Closing Balance
30 June 2007
$000 |
| Memorandum Account |
|
|
|
| Vote Commerce |
|
|
|
| Registration and Provision of Statutory Information |
12,427 |
(5,941) |
6,486 |
| Registration and Provision of Statutory Information – Motor Vehicle Traders Register and Information Programme |
627 |
196 |
823 |
| Registration and Granting of Intellectual Property Rights |
4,379 |
2,381 |
6,760 |
| Vote Communications |
|
|
|
| Management and Enforcement of the Radiocommunications Act 1989 |
7,173 |
(1,938) |
5,235 |
| Vote Consumer Affairs |
|
|
|
| Policy Advice and Support on Consumer Issues – Motor Vehicle Traders Register and Information Programme |
(127) |
135 |
8 |
| Vote Energy |
|
|
|
| Management of the Crown Mineral Estate |
- |
224 |
224 |
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 revised ten-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 (Vote Commerce and Vote Consumer Affairs)
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 has been established under this output expense to accumulate a surplus balance to the year 2010 when the impact of changes in the timing of the fee receipts is 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 was undertaken, with a new fee structure implemented in 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.
Management of Crown Mineral Estate
It is forecast that, during the period 2006–2010, there is likely to be significant swings in revenue earned under this Output Expense and the associated net surpluses/deficits, due to the volatility associated with exploration and production activities and their impact on permit applications.
The establishment of a Memorandum Account was approved in 2006/07 to enable the Ministry to take a long-run perspective on cost recovery and to manage these swings in revenue, in order to avoid the use of erratic fee changes as an adjustment mechanism to manage a particular year's over or under recovery.
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