Statement of Performance Expectations for the 2022-2023 financial year

Contents

1. Introduction
2. Minister’s letter of expectations
3. Performance assessment and annual expectations
4. How we will assess performance
5. Forecast financial statements
6. Notes to the forecast financial statements

Statement of Performance Expectations for the year ending 30 June 2023

This Statement of Performance Expectations reflects our proposed performance targets and forecast financial information for the year ahead. We produced it in accordance with section 149E of the Crown Entities Act 2004.

This Statement of Performance Expectations reflects our proposed performance targets and forecast financial information for the year ahead. We produced it in accordance with section 149E of the Crown Entities Act 2004.

The Board of the Walking Access Commission has authorised, as appropriate, for issue the forecast financial statements and underlying assumptions in this document in accordance with its role under the Crown Entities Act 2004. We do not intend to update the forecast financial statements subsequent to presentation.

In July 2022 the New Zealand Walking Access Commisson will change its name to Herenga ā Nuku Aotearoa Outdoor Access Commission. Although signed and approved in June 2022, this Statement of Performance Expectations reflects the Commission’s new name.

Introduction

This is the 2022-2023 Statement of Performance Expectations (SPE), prepared by Herenga ā Nuku Aotearoa. We provide all information in accordance with the Crown Entities Act 2004.

This SPE reflects our operational priorities for the 2022-2023 financial year.

The SPE also incorporates the priorities of the Government, the Minister, and our Board. To support this work, we will continue to use the strategy and outcomes framework outlined in the Statement of Intent 2021 to 2025 which we developed in 2020-2021. Both continue to inform our decision-making and enable us to track our performance.

To ensure we can respond to changes in our operating environment we review our measures annually to ensure they remain fit for purpose.

We will report our performance results in the 2022-2023 Annual Report.

We provide the SPE in two parts:

1. performance assessment and annual expectations, and
2. forecast financial statements.

Review of performance measures

As signalled in our Statement of Intent, Herenga ā Nuku is reviewing its performance measures. The Ministry for Primary Industries kindly supplied advice and training from its internal experts on developing effective performance measures.

We hope to integrate new performance measures into next year’s SPE once we have tested their reporting mechanisms and established baselines for them this year.

Our core goal is connecting people and connecting places by supporting access to the outdoors. Because of that, many of the new measures we are developing focus on the people we engage with or should engage with — do they trust us, and do they feel that we are improving their connection to the whenua?

For this year we will continue to report against our established performance measures.

We have added one new measure that reports on the number of active and completed regional projects Herenga ā Nuku supports.

How we will assess performance

Performance will be assessed against the outcomes in our strategic framework and their related output services and activities, as outlined in our Statement of Intent.

This section sets out our performance measures, targets, estimates, and budgets for the year ending 30 June 2023.

These are produced in accordance with the Crown Entities Act 2004.

Enduring expectations for Crown entities

Herenga ā Nuku continues to follow the advice provided by Te Kawa Mataaho in its updated Letter of Enduring Expectations for statutory Crown entities (October 2019).

Key priorities include a unified, value-based government for all New Zealanders, supporting future-focused Māori Crown relationships, and contributing to improving wellbeing.

Public Service Pay Gaps Action Plan

Herenga ā Nuku will implement the Public Service Pay Gaps Action Plan to ensure its workplace is fair and equitable, especially for women, Māori, Pacific and ethnic employees.

Carbon Neutral Government Programme requirements

Herenga ā Nuku is taking active steps to reduce greenhouse gas emissions, improve energy efficiency and reduce waste outputs. Herenga ā Nuku is preparing to phase in the Carbon Neutral Government Programme requirements in 2022-2023.

Forecast financial statements

The forecast financial statements provide all appropriate information and explanations needed to fairly reflect the forecast financial operations and financial position of Herenga ā Nuku for the year ending 30 June 2023, in accordance with s149G of the Crown Entities Act 2004.

Minister’s letter of expectations

Hon Meka Whaitiri, as Associate Minister of Agriculture, is the Minister responsible for Herenga ā Nuku Aotearoa. Each year the Minister sets out in a letter of expectations the areas she would like Herenga ā Nuku to demonstrate results in.

The Minister expects us to:

• continue making demonstrable progress towards creating new outdoor access opportunities while also considering the associated environmental costs. As part of this, continue progressing strategic regional projects in Tairāwhiti, Franklin–North Waikato and Matakana.
• continue progressing our Māori partnership and engagement strategy to develop new opportunities for access for Māori.
• implement the recommendations of the review of the Walking Access Act 2008 that do not require legislative change, including:
  • building support for regional and local volunteer groups and trusts involved in walkways, tracks, trails, and other public access to the New Zealand outdoors
  • continuing to develop the partnership with Te Araroa Trust, and
  • enabling increased Māori involvement in the kaitiakitanga of tracks and trails.
• continue to incorporate cycling access alongside walking access negotiations and development.

As Herenga ā Nuku seeks out opportunities to provide access to the outdoors, we will give extra weight to opportunities that include these areas of focus.

We will work to realise each of the Minister’s expectation as well as maintaining our core activities.

Performance assessment and annual expectations

Our Strategic Framework

Our vision and purpose — Te mauri o te hīkoi

Our purpose is to provide New Zealanders with free, certain, enduring and practical access to the outdoors.

Our mission - What we intend to achieve

To lead national development and support local implementation of access to the outdoors.

Impacts over time - How we contribute and influence

We engage with central and local government agencies, mana whenua, organisations and community groups to generate public access opportunities that support healthy communities.

Our outcomes - How we know we are succeeding

The following outcomes are important to the success of Herenga ā Nuku:

• public access is available where and when it will add most value to communities
• people know how to find access
• people access the outdoors responsibly

Our outputs - How we deliver

Public access is available where and when it will add most value to communities because we:

• facilitate and lead public outdoor access
• facilitate resolution of access disputes
• support Māori cultural access to the outdoors, and
• engage with communities

People know how to find access because we:

• manage the access mapping system, and
• provide tracks and trails information

People access the outdoors responsibly because of our:

• education programmes
• digital-led behaviour change initiatives
• New Zealand Outdoor Access Code, and
• collaboration with other organisations with an interest in responsible behaviour in the outdoors.

Our activities - What we work on

Key activities that support our output delivery include:

• Investigating, assessing and facilitating access disputes
• Supporting the promotion of Māori culture and heritage through public access
• Incorporating cycling access, where appropriate, alongside walking access
• Handling general access enquiries and case management
• Preparing and delivering access recommendation reports for the Overseas Investment Office
• Managing Enhanced Access Grant applications
• Influencing outdoor access policy and decision making
• Attending or hosting workshops and meetings with other government agencies, landholders, mana whenua, organisations and community groups to promote access
• Managing and maintaining track and trail data
• Publicising and identifying access across all land types

How we will assess performance

Managed access is available where and when it will add most value to communities

Herenga ā Nuku works with a range of stakeholders to secure access to the outdoors. We do this by negotiating and building relationships with local communities, mana whenua, councils, and agencies such as the Department of Conservation (DOC) and Land Information New Zealand (LINZ), which incorporates the Overseas Investment Office (OIO).

Our work under this output includes recommending access for areas subject to the sensitive land provisions of the OIO. It also includes mediating between parties where they are disputing access. We also support diverse communities and local groups to secure new access opportunities or to maintain and enhance existing access.

• Note 1: We are developing a measure of our support for Māori cultural access to the outdoors
• Note 2: Prior to 2022-2023 this measure tracked acknowledgement of enquiries within 10 working days.

People know how to find access

Herenga ā Nuku works with DOC, LINZ, and other organisations, to access spatial data that forms the basis of our mapping system. From this data we make the publicly available maps that are on our website. These provide up-to-date information on where the public can find legal public access for recreational and professional purposes.

We want to understand how the public learns about access opportunities, so we analyse website traffic using Google analytics, to ensure the information we provide is current and relevant.

• Note 3: We gazetted no new walkways in 2020-2021. Herenga ā Nuku does not have funding to construct or maintain physical walkway infrastructure. Accordingly, Herenga ā Nuku appoints controlling authorities – generally the DOC or a territorial authority – to undertake these functions. Due to budgetary constraints faced by DOC and territorial authorities, Herenga ā Nuku has found it increasingly difficult to gain agreement from potential controlling authorities where agreement to secure a walkway easement over private property has been given. This means although we have secured legal access, the walkways have not been gazetted, are not physically formed, and are not available for the public to use.
• Note 4: Find My Adventure users increased by 1,092% compared to the previous year. This is in response to the tool reaching more people through being embedded into other organisations’ websites, such as Te Araroa.

People access the outdoors responsibly

Encouraging the public to act responsibly while in the New Zealand outdoors is a key task. We do this in two ways – by providing educational resources, and general information on how to behave while in the outdoors.

In addition, we are also responsible for enforcing behaviour on walkways via territorial and regional councils and DOC, which act as controlling authorities on our behalf.

Forecast Financial Statements

The forecast financial statements provide all the appropriate information and explanations needed to fairly reflect the forecast financial operations and financial position of Herenga ā Nuku for the year ending 30 June 2022 in accordance with s149G of the Crown Entities Act 2004.

Our activities contribute to the non-departmental output expense, Support for Walking Access, within Vote Agriculture, administered by the Ministry for Primary Industries. We will receive $3,595,000 (GST exclusive) in Crown funding in 2022-2023, ($3,595,394 in 2021-2022).

Herenga ā Nuku does not propose to supply any class of outputs in the financial year that is not a reportable class of outputs [section 149E (1)(c )].

Statement of Forecast Comprehensive Revenue and Expense

For the Year Ending 30 June 2023

Statement of Forecast Financial Position

As at 30 June 2023

Statement of Forecast Changes in Equity

As at 30 June 2023

Statement of Forecast Cash Flows

For the year ending 30 June 2023

Notes to the Forecast Financial Statements

Statement of Accounting Policies

Reporting Entity 

Herenga ā Nuku Aotearoa is a Crown entity as defined by the Crown Entities Act 2004 and is domiciled and operates in New Zealand. As such, its operations include the Crown Entities Act 2004 and the Walking Access Act 2008. Herenga ā Nuku has the New Zealand Crown as its ultimate parent.

The functions and responsibilities of the Herenga ā Nuku are set out in the Walking Access Act 2008. Our primary objective is to provide services to the New Zealand public, as opposed to making a financial return. We have one output: Support for Walking Access. The figures presented in these financial statements are for that one output. Accordingly, Herenga ā Nuku has designated itself as a public benefit entity (PBE) for the purposes of financial reporting purposes.

The forecast financial statements reflect the operations of Herenga ā Nuku only, and do not incorporate any other entities. These forecast financial statements are for the year ending 30 June 2023. 

Basis of Preparation 

We have prepared the financial statements presented here in accordance with (New Zealand) generally accepted accounting practice and are consistent with the accounting policies to be adopted for the preparation of financial statements. We have prepared them on the assumption that Herenga ā Nuku is a going concern.

We have prepared the forecast financial statements in accordance with Tier 2 PBE accounting standards.

Presentation Currency and Rounding 

We have presented the financial statements in New Zealand dollars unless otherwise stated. 

Significant Accounting Policies 

Revenue 

Revenue is measured at the fair value of consideration received or receivable. 

Funding from the Crown 

Herenga ā Nuku is primarily funded through revenue received from the Crown that is restricted in its use for the purpose of Herenga ā Nuku meeting our objectives as specified in our founding legislation and the scope of the relevant appropriations of the funder. Herenga ā Nuku considers there are no conditions attached to the funding and it is recognised as revenue at the point of entitlement. 

Interest revenue 

Interest income is recognised as it accrues on bank account balances and investments. 

Grant Expenditure 

Herenga ā Nuku grants are those grants where Herenga ā Nuku has no obligation to award on receipt of the grant application and are recognised as expenditure when the approved applicant has met the criteria in the grant contract and we have approved the expenditure. 

Leases 

Finance leases 

A finance lease is a lease that transfers to the lessee substantially all the risks and rewards incidental to ownership of an asset, whether or not title is eventually transferred. Herenga ā Nuku does not have any finance leases. 

Operating leases 

An operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership of an asset. Lease payments under an operating lease are recognised as an expense on a straight-line basis over the term of the lease. Lease incentives received are recognised in the surplus or deficit as a reduction of rental expense over the lease term. 

Cash and Cash Equivalents 

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less. 

Debtors and other Receivables 

Short-term receivables are measured at their face value, less any provision for impairment. 

A receivable is considered impaired when there is evidence that we will not be able to collect the amount due. The amount of the impairment is the difference between the carrying amount of the receivable and the present value of the amounts expected to be collected. 

Investments 

Investments in bank term deposits are initially measured at the amount invested. After initial recognition, investments in bank deposits are measured at amortised cost using the effective interest method, less any provision for impairment. 

Property, Plant and Equipment 

Property, plant and equipment consists of the following asset classes: computer hardware, leasehold improvements and office equipment. Property, plant and equipment are measured at cost, less any accumulated depreciation and impairment losses. 

Additions 

The cost of an item of property, plant and equipment is recognised as an asset only when it is probable that future economic benefits or service potential associated with the item will flow to Herenga ā Nuku and the cost of the item can be measured reliably. 

Disposals 

Gains and losses on disposal are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposals are included in the Statement of Financial Performance. 

Subsequent costs 

Costs incurred after initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to Herenga ā Nuku and the cost of the item can be measured reliably. The costs of day-to-day servicing of property, plant and equipment are recognised in​ the surplus or deficit as they are incurred. 

Depreciation 

Depreciation is provided on a straight-line basis on all property, plant and equipment at rates that will write-off the cost (or valuation) of the assets to their estimated residual values over their useful lives. The useful lives and associated depreciation rates of major classes of property, plant and equipment have been estimated as follows: 

Office equipment 

• 5-10 years 10%-20%

Leasehold improvements

• 9 years 11.1%

Computer hardware

• 4-5 years 20% – 25% 

Leasehold improvements are depreciated over the unexpired period of the lease or the estimated remaining useful lives of improvements, whichever is the shorter. The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year end. 

Intangible Assets 

Software acquisition and development 

Acquired computer software licenses are capitalised based on the costs incurred to acquire and bring to use the specific software.

Costs that are directly associated with the development of software for internal use are recognised as an intangible asset.

The cost of an internally generated asset comprises all directly attributable costs necessary to create, produce and prepare the asset to be capable of operating in the manner intended by management. 

Staff training costs are recognised as an expense when incurred.

Costs associated with maintaining computer software are recognised as an expense when incurred.

Costs associated with development and maintenance of our website are recognised as an expense when incurred. 

Amortisation 

The carrying value of an intangible asset with a finite life is amortised on a straight-line basis over its useful life. Amortisation begins when the asset is available for use and ceases at the date the asset is derecognised. The amortisation charge for each financial year is recognised in the surplus or deficit. 

Computer software

• 3-5 years 20% – 33%

Impairment of Property, Plant and Equipment and Intangible Assets 

Herenga ā Nuku does not hold any cash-generating assets. Assets are considered cash-generating where their primary objective is to generate a commercial return. 

Non-cash-generating assets 

Property, plant and equipment and intangible assets held at cost that have a finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable service amount. The recoverable service amount is the higher of an asset’s fair value less costs to sell and value in use. 

Value in use is determined using an approach based on either a depreciated replacement cost approach, restoration cost approach, or a service units approach. 

The most appropriate approach used to measure value in use depends on the nature of the impairment and availability of information. If an asset’s carrying amount exceeds its recoverable service amount, the asset is regarded as impaired and the carrying amount is written down to the recoverable amount. The total impairment loss is recognised in the Statement of Financial Performance as is any subsequent reversal of an impairment loss. 

Creditors and other Payables 

Short-term creditors and other payables are recorded at their face value.

Employee Entitlements 

Short-term employee entitlements 

These include salaries and wages accrued up to balance date, annual leave earned to but not taken at balance date, and sick leave. Employee benefits that are due to be settled within 12 months after the end of the period in which the employee renders the related service are measured based on accrued entitlements at current rates of pay.

A liability for sick leave is recognised to the extent that absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year. The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date, to the extent that it will be used by staff to cover those future absences. A liability and an expense are recognised for performance payments where there is a contractual obligation and a reliable estimate of the obligation can be made.

Presentation of employee entitlements 

Annual leave and sick leave are classified as a current liability. 

Superannuation Schemes 

Defined contribution schemes obligations for contributions to Kiwi Saver and the Government Superannuation Fund are accounted for as defined contribution superannuation schemes and are recognised as an expense in the surplus or deficit as incurred. 

Goods and Services Tax (GST) 

All items in the financial statements are presented exclusive of GST, except for receivables and payables, which are presented on a GST inclusive basis. The net amount of GST recoverable from, or payable to, the Inland Revenue Department is included as part of receivables or payables in the statement of financial position. The net GST paid to, or received from, the Inland Revenue Department, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows. 

Income Tax 

Herenga ā Nuku is a public authority and consequently is exempt from the payment of income tax. Accordingly, we have made no provision for income tax.