Stats NZ’s AnnualR ep ot r

Contact us

Stats NZ Information Centre:

[email protected] Phone toll-free 0508 525 525Phone international +64 4 931 4600

www.stats.govt.nz

STATS NZ

’S AN

NUA

L RE

POR

T | FOR TH

E YEAR EN

DED

30 JUN

E 2020

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Stats NZ’s Annual Report Pūrongo ā-tau o Tatauranga Aotearoa

Mō te mutunga o te tau i te 30 o ngā rā o Pipiri 2020 For the year ended 30 June 2020

2020

G28

Stats NZ’s Annual ReportPūrongo ā-tau o Tatauranga Aotearoa

Mō te mutunga o te tau i te 30 o ngā rā o Pipiri 2020

For the year ended 30 June 2020

STATS NZ’S ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 20202

Crown copyright ©

This work is licensed under the Creative Commons Attribution 4.0 New Zealand license. You are free to copy, distribute, and adapt the work, as long as you attribute the work to Stats NZ and abide by the other license terms. Please note you may not use any departmental or governmental emblem, logo, or coat of arms in any way that infringes any provision of the Flags, Emblems, and Names Protection Act 1981. Use the wording ‘Stats NZ’ in your attribution, not the Stats NZ logo.

LiabilityWhile all care and diligence has been used in processing, analysing, and extracting data and information in this publication, Stats NZ gives no warranty it is error free and will not be liable for any loss or damage suffered by the use directly, or indirectly, of the information in this publication.

CitationStats NZ (2020). Stats NZ’s Annual report for the year ended 30 June 2020. Wellington: Statistics New Zealand.

Published in November 2020 by

Stats NZ Tatauranga Aotearoa Wellington, New Zealand

ContactStats NZ Information Centre: [email protected] Phone toll-free 0508 525 525 Phone international +64 4 931 4600

www.stats.govt.nz

http://www.stats.govt.nz

STATS NZ’S ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2020 3

Kupu whakatataki a te Tumu WhakahaereIntroduction from the chief executive

E ngā mana, e ngā reo, rau rangatira mā, tēnā koutou, tēnā koutou, tēnā koutou.

Ko tēnei taku mihi atu ki a koutou i tēnei wāhanga o te tau. Kātahi te tau rerekē ko tēnei mā tātou. Ko ngā kōrero e whai ake nei, ko te pūrongo a tau a Tatauranga Aotearoa. Ko te tūmanako, e whai hua ana tēnei pūrongo ki a koe.

Heoi anō, e kīa nei, “Hūtia te rito o te harakeke, kei hea te Kōmako e kō? Kī mai ki ahau, he aha te mea nui o te ao? Māku e kī atu, he tangata, he tangata, he tangata”.

Nō reira, kia kaha, kia toa, kia manawanui, tēnā koutou, tēnā koutou, tēnā tātou katoa.

Welcome to Stats NZ’s 2020 annual report

It’s an exciting time to be at Stats NZ, as we continue to shift our focus from being the provider of New Zealand statistics to an organisation unleashing the power

of data to change lives. Our purpose is to inform key decision-makers and

empower them to make evidence-based decisions on the big issues affecting New Zealanders.

Since my start as Chief Executive in January 2020, we have begun making changes to Stats NZ’s direction as an organisation. These include:

• strengthening our leadership and workplace culture

• continuously improving how we engage with our people and external stakeholders

• fostering greater transparency in the way we collect, process, and disseminate data

• running the organisation more simply and strategically to achieve our future goals.

These changes position the organisation for the future and will drive our work programme over the coming years.

In my first few months as chief executive, COVID-19 rapidly changed the way in which we work. I am very proud of the way Stats NZ banded together to support the all-of-government response to COVID-19. Our people embraced working from home and, despite not being in the same building, were able to produce products and insights using real-time data.

“Our purpose is to inform key decision-makers and empower them to make evidence-based decisions on the big issues affecting New Zealanders.”


We produced two key products to track the effects of COVID-19 on New Zealand and New Zealanders, COVID-19 data portal1 and the population reports produced by our commercial arm, Data Ventures2.

Both products provided timely data that empowered key decision-makers to make evidence-based decisions throughout the COVID-19 response and recovery periods.

In line with my intentions, new external and internal governance arrangements have been established. These include the Governance Advisory Board, the Risk and Assurance Committee, and the Census programme management team. These will act as independent sources of advice, as well as challenging our decisions and holding us accountable for our work.

Working with Māori to deliver key statistics that suits their needs is an area we need to strengthen. We’ve made a start with the Mana Ōrite Relationship Agreement, signed between Stats NZ and the Data Iwi Leaders Group of the National Iwi Chairs Forum on 30 October 2019. The purpose of the relationship is to work together with iwi-Māori to realise the potential of data to make a sustainable, positive difference for iwi, hapū, and whānau (te oranga whānui o Aotearoa). The associated Mana Ōrite work programme is enabled and grounded in shared relationship principles, including the central tenet ‘mana ōrite’ or ‘equal explanatory power.’ We see this relationship as a unique opportunity to (re)build trust and confidence, and it is our aspiration to be acknowledged by iwi-Māori as a government department that embraces the Māori-Crown relationship.

The Report of the Independent Review of New Zealand’s 2018 Census3 brought a stark reminder that despite many aspects of the 2018 Census doing well, there were key components that were not successful. Unanticipated challenges resulted in us being unable to deliver some of the data New Zealanders were expecting. We are making progress on implementing the recommendations from the review and are monitoring the progress of the 2023 Census closely to ensure its success.

Lastly, I would like to thank Liz MacPherson for her leadership while at Stats NZ. Liz was passionate about growing our statistical and data influence across government and continues to be a champion of the work we do.

The work we have done in the last year has provided a good platform to progress current work, which will set us up for the future. This annual report covers both successes and challenges we faced during the 2019/20 financial year and sets out what we will be striving to achieve over the coming year. With that being said, I am proud to present this annual report to you.

Mark Sowden Chief Executive and Government Statistician 30 November 2020

“In line with my intentions, new external and internal governance arrangements have been established.”

1 Available from www.stats.govt.nz/experimental/covid-19-data-portal

2 Available from https://dataventures.nz/covid-19.html3 Available from www.stats.govt.nz/reports/report-of-the-

independent-review-of-new-zealands-2018-census


Ngā ihirangi | ContentsKupu whakatataki a te Tumu Whakahaere Introduction from the chief executive 3

Tatauranga Aotearoa ā-tauanga | Stats NZ by numbers 6

Tatauranga 2018 | 2018 Census 8

Tā mātou urupare ki COVID-19 | Our response to COVID-19 10

Ko wai mātou | Who we are 13

Ā mātou whāinga rautaki | Our strategic objectives 19

Strategic objective 1: Growing customer confidence through relevance and reliability 19

Strategic objective 2: Expanding customer use of existing data through improved accessibility 23

Strategic objective 3: Enabling sound decision-making through providing relevant, reliable,

and accessible data that reflects Māori communities 24

Strategic objective 4: Leading an effective government data system through partnerships

and strong relationships 29

Ngā inenga whakatutukinga ki ngā rironga pūtea Appropriation performance measures 39

Tauākī takohanga | Statement of responsibility 45

Te Pūrongo a te Kaiarotake Tū Motuhake | Independent Auditor’s report 46

Ngā tauākī pūtea | Financial statements 51

Rārangi o ngā tūtohi | List of tables

Table 1: Official statistics – performance information 40

Table 2: Data and statistical information services – performance information 42

Table 3: Stewardship of government data and statistical activities – performance information 43

Table 4: Services to other agencies and capital expenditure – performance information 44

7STATS NZ’S ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2020STATS NZ’S ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 20206

23,318

1,668,000 km

Facebook followers at the end of June 2019

(excluding census) travelled by Survey Interviewers

1,155 staff are employed across the country

225 in Auckland

557 in Wellington

282 in Christchurch

91 in other locations (field staff)

165,307 questionnaires sent, gathering approximately

149,960 responses

64%

The 2020 Employee Experience

Survey Score as rated by staff was

– down from 67% in 2019

68% European

8% Māori

5% Pacific

21% Asian

55% Female

44% Male

1% Gender Diverse

1% Undisclosed

Ethnic mix of staff (where disclosed)

13,028Twitter followers

69,936 businesses and

86,000 individuals provided survey information

to Stats NZ

Gender breakdown

Average tenure of our staff is

7.6 years

44.6%of our senior leaders

are women

3,887,601 visits to stats.govt.nz website

13.1%Our gender pay gap* is

Our staff are aged from under 20 to over 70 years * Gender pay gap calculation differs from 2018 — now uses State Services Commission guidelines.


Tatauranga Aotearoa ā-tauangaStats NZ by numbers


Tatauranga 2018 | 2018 Census In the 2019/20 financial year, our primary focus areas for 2018 Census were:

• completing outputs for 2018 Census

• compiling the business case to present to The Treasury for 2023 Census

• developing the high-level design for 2023 Census.

2018 Census outputsWe released outputs for the 2018 Census between September 2019 and June 2020, rounding out a more than 6-year work programme. We acknowledge that 2018 Census brought about challenges, which we aimed to resolve over this financial year. The lessons we learned from 2018 Census will be used to better plan and prepare for the 2023 Census.

Within this past year, more than 1.4 billion data points were released, comprising 140 standard data tables and 250 customised releases. Other releases included 51 maps, 47 news stories, five infographics, and a custom-made interactive digital tool that enabled users to explore the diversity of places and communities in New Zealand.

This data has underpinned and supported government, academia, experts of various fields, customers/businesses, and communities to understand the needs of the people of New Zealand.

World-leading methodologyChallenges that we had in the collection of 2018 Census resulted in significant gaps needing to be filled, especially for Māori and Pacific people. Using administrative data, we were able to supplement 2018 Census responses with other sources for statistical outputs. Our methodology piqued international interest and is being used as an example of how other statistical agencies can develop and expand on their use of admin data in their own censuses.

In the past year, we have been regular participants on the International Census Forum (ICF) and remain actively engaged via ICF working groups. We participated in a

United Nations Economic Commission for Europe (UNECE) working group on quality of admin data for census, served on review teams for the Office of National Statistics (ONS) and Australian Bureau of Statistics (ABS), and participated in a Sydney population estimation workshop.

Place summaries At the beginning of 2020, we released 2018 Census place summaries4, which showcased 2018 regional data in an easy -to-use interface format. The place summaries tool is our most popular product, as New Zealanders are able to see their local suburb in the data. In conjunction with the tool’s release, we held free information seminars across the country showing professionals and community-based data users how to access, interpret, and use 2018 Census data.

Crowding data Since 2001, we have consistently released data showing the direct correlation between overcrowded homes and negatively impacted health. As a result of COVID-19, this work became a priority for us, especially in aiding our stakeholders to understand and prepare a response.

Overcrowded homes pose as a large risk factor for the transmission of diseases, and 2018 Census data revealed that 1 in 9 people in New Zealand live in a crowded house. Released in April 2020, the 2018 Census data showed almost 4 in 10 Pacific people and around 1 in 5 Māori experience crowding. These figures are consistent with those in the 2013 and 2006 Censuses.

Despite the change in methodology, crowding distributions are also fairly consistent with similar crowding data from both the general social survey and the household economic survey. Similar distributions of crowding levels are seen when data is broken down by age group, ethnicity, and number of usual residents.

4 Available from www.stats.govt.nz/tools/2018-census-place-summaries

http://www.stats.govt.nz/tools/2018-census-place-summaries

http://www.stats.govt.nz/tools/2018-census-place-summaries


Mould and damp data collected in census for the first timeFor the first time, mould and damp questions were asked in the 2018 Census. It was reported that more than 1 in 5 homes were damp some or all of the time during the 2018 Census collection period.

Both dampness and mould were found to be more common in rented homes; attributing to the national picture of the state of our housing. These findings are similar to the housing quality statistics from the 2018 general social survey.

It was found that more than 2 in 5 Māori and Pacific people in occupied dwellings were living in damp conditions during this time period, with higher rates of dampness in the North Island. This data adds to future discussions on appropriate health and wellbeing strategies in our communities.

Statistics about mould and damp have been valuable for informing the ongoing COVID-19 response and for future planning on resource distribution for vulnerable communities.

2023 Census In this financial year, we confirmed that the next census will be held in 2023. Our business case presented to The Treasury in late 2019 and May 2020 resulted in the confirmation of our current funding of $210 million. This budget will allow us to increase the number of census collectors, and support sustained and ongoing work connecting and engaging with communities all over New Zealand.

A priority for us is working with and doing better for Māori communities. Earlier in 2019, we extended the narrative of Valuing the Census5, a report commissioned in 2013 by the Data Iwi Leaders Group (Data ILG). The first phase of this report refresh, Value of the census for Māori6, was published in October 2019 and found that the census

5 Available from www.stats.govt.nz/research/valuing-the-census

6 Available from www.stats.govt.nz/reports/value-of-the-census-for-maori

delivers considerable value for Māori communities. We aim to continue working with iwi and Māori communities to ensure quality data on all variables relevant to Māori is produced in the 2023 Census.

The 2023 Census will use a combined model by design, meaning that our outputs will be a combination of census response records and administrative data records.

Key changes for the 2023 Census include:

• questions about sex, gender identity, and sexual orientation

• delivering paper forms to approximately 50 percent of households before census day (compared with about 3 percent in 2018)

• a large increase in our field staff

• a much greater focus on sustained, meaningful community engagement.

Our high-level design of the 2023 Census is a focus for us and has been signed off as of August 2020. To help keep the public updated on our planning and development, we have created the webpage 2023 Census7.

7 Available from www.stats.govt.nz/2023-census

“We aim to continue working with iwi and Māori communities to ensure quality data on all variables relevant to Māori is produced in the 2023 Census.”

http://www.stats.govt.nz/research/valuing-the-census

http://www.stats.govt.nz/reports/value-of-the-census-for-maori

http://www.stats.govt.nz/reports/value-of-the-census-for-maori

http://www.stats.govt.nz/2023-census


Tā mātou urupare ki COVID-19 Our response to COVID-19COVID-19 has had a large impact on every industry on a global scale. Now more than ever, it has been important for Government and key decision-makers to have access to accurate and near-real-time data to make evidence-based decisions.

Stats NZ’s role in reporting on key statistics became increasingly crucial in tracking the impact of COVID-19 on New Zealand’s economy and communities. Collecting data on households and businesses, the consumer price index (CPI), and gross domestic product (GDP) are a few of the datasets impacted by COVID-19’s challenging nature.

However, with these challenges came opportunities to include the use of new datasets, further innovate our statistical methods and processes, and collaborate with other organisations both in New Zealand and overseas. As a result, New Zealand’s data system has emerged from the pandemic with stronger and more versatile approaches to collecting, producing, and sharing data and statistics.

Our internal response As an organisation, we made it imperative to keep our people throughout New Zealand safe and informed. Two weeks ahead of moving into alert level 4, we set up a COVID-19 response team to coordinate our response as an organisation and ensure our people were equipped to work from home. On 20 March we stopped all face-to-face surveys to protect our frontline staff and reduce the possibility of our work contributing to the spread of COVID-19.

To enable us to continue delivering statistics and data for New Zealanders, we decided to prioritise the following for March through to June 2020:

• support the all-of government COVID-19 response, including:

» redeploying staff

» data modelling and scenario planning about the future spread of the disease

» delivering real-time data in an easy and accessible format

» generating critical datasets

• provide ongoing key economic and social statistics

• prioritise access to the Integrated Data Infrastructure

• continue to plan and prepare for the 2023 Census

• continue long-term planning, including a return to business-as-usual.

Support the all-of-government COVID-19 response One day before New Zealand entered alert level 4, we answered a call-to-action from the National Crisis Management Centre (NCMC) to assist with the COVID-19 information line. In less than 24 hours, 100 of our contact centre staff started answering calls from the public, most of which was done from their homes. Everything regarding essential services, wage subsidies, employer/employee health, safety practices, and much more was asked and answered.

We also had staff members deployed to the NCMC where we contributed to scenario planning and modelling to inform:

• the government forecasting process – to inform big decisions such as opening borders

• agency forecasting (using stories turned into quantified impacts) – to ensure contingency planning is based on consistent assumptions

• working with Te Pūnaha Matatini – to ensure theygot the data they needed.

“... New Zealand’s data system has emerged from the pandemic with stronger and more versatile approaches to collecting, producing, and sharing data and statistics.”


Continuing to produce key statistics We continued to provide key economic and social statistics to show how New Zealand was faring across a range of statistics such as trade, travel, spending, inflation, and employment. Having temporarily stopped face-to-face surveys, we used alternative methods to collect data, such as:

• forming a virtual contact centre

• increasing our use of web-scraping

• collecting prices manually from the internet and contacting retailers

• engaging with businesses via email and text messaging.

We also began producing trade data on a weekly (rather than monthly) basis and publishing provisional travel data on a weekly basis.

Access to Integrated Data The Integrated Data team worked hard at short notice to enable continued access to the Data Lab for a limited number of projects directly linked to the COVID-19

response or critical to government operations. These included the modelling project undertaken by Shaun Hendy’s team at the University of Auckland, which fed directly into the NCMC’s response.

The Treasury had several critical projects looking at modelling the effects of different lengths of lockdown on the country, for example, schools (financially), the economy, and businesses. The Ministry of Business, Innovation and Employment analysed the effects of lockdown on workers and businesses.

The COVID-19 data portal The COVID-19 data portal8, developed by our analysts, features over 40 high-frequency and near real-time key indicators across the economic, health, and social fields.

We worked with both public and private sector agencies to provide policymakers with up-to-date data to inform decision-making through this portal.

8 Available from www.stats.govt.nz/experimental/covid-19-data-portal

NCMC COVID-19 modelling team: Steven Youngblood (from ACC), Vince Galvin, Pubudu Senanayake, Sarndra Flay, Preeti Shah.

http://www.stats.govt.nz/experimental/covid-19-data-portal

http://www.stats.govt.nz/experimental/covid-19-data-portal


The data portal is simple to use and illustrates the ongoing effects of COVID-19 at a glance. We have had over 30,000 visits to the page since release.

Data Ventures Data Ventures, the commercial arm of Stats NZ provided expertise and insights to the government COVID-19 response through:

• collaborating with Vodafone and Qrious to create a population mobility index using cell phone tower data that provided key insights that influenced Alert Level decision-making, for example, New Zealanders generally complied with public health messaging through the COVID-19 response alert levels

• developing a population density report to help assess the risks on the population in various scenarios in detail previously unavailable

• developing a tourism report to help Government locate short-term tourists and provide appropriate support, for example, mercy flights, accommodation, and visas.

The COVID-19 data portal showing daily figures of border arrivals from January 2019 to June 2020.


Ko wai mātou | Who we are

Stats NZ Tatauranga Aotearoa is a team of over 1,000 people dedicated to fulfilling the vision of “unleashing the power of data to change lives”.

We are New Zealand’s leaders in data and statistical analysis; supporting and facilitating the release of social, economic, and environmental data for the betterment of New Zealand. As a government agency, we deliver statistics, data, advice, insights, and expertise to our customers – including decision-makers and the general public.

Who we want to be Throughout the 2019/20 financial year we continued to fulfil our vision of “unleashing the power of data to change lives”. We worked with various international statistical agencies, national agencies, communities, iwi, and Māori to deliver products and statistics.

We aimed to continuously explore and reinvent how we use and present data for the public good, which became especially necessary during the height of the COVID-19 pandemic in New Zealand. By pushing the boundaries of the data system, we continued to provide key data and statistics that not only showed the rest of the world how COVID-19 affected our country, but also opened the gateways to broader and better ways of thinking.

Our plan for the 2020/21 financial year is to continue unleashing relevant and reliable data, informing key decision-makers with evidence-based data, and empowering everyday New Zealanders to see the value of our data.

How we’re getting there To ensure we are fulfilling our role as leaders of New Zealand’s data ecosystem, we focus our efforts on the following four strategic intentions (which we will review in 2020/21):

1. Growing customer confidence through relevance and reliability.

2. Expanding customer use of existing data through improved accessibility.

3. Enabling sound decision-making through providing relevant, reliable, and accessible data that reflects Māori communities.

4. Leading an effective government data system through partnerships and strong relationships.

We are the recognised leader of the New Zealand data system

As the leaders of New Zealand’s data system, we are constantly responding to the changing environment and data needs of our fellow government agencies and the New Zealand public. Our goal is to inform decision-makers and empower our key stakeholders to gain value from our data and use it to make a meaningful and positive difference in the lives of New Zealanders.

We are partnering with government agencies to:

• increase their capability to manage and use data

• identify and remove roadblocks to accessing data

• implement data standards

• use new methodologies.

We are continuously responding to increasing demands for data and statistics, especially during the COVID-19 response and recovery phases. By providing related data in a timely manner, we can provide a snapshot of COVID-19’s impact on New Zealand in many different facets (including social wellbeing, economy, tourism).

We are also responding to the increased demand for data and analytics capability across the data system and are seeking to address this in our stewardship role. Creating a tenfold increase in the value of data will require greater openness and capability across the data system, and our leadership role is expanding to meet this need.

14 STATS NZ’S ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2020

People trust and participate in the data system

Trust, transparency, and integrity are at the heart of our work. We hold everything we produce to high standards while continuing to the push boundaries on what data can do on a global scale. We must continue to build and maintain trust and confidence with our key stakeholders, New Zealanders, and our international counterparts to ensure our data is engaged with and used to inform decisions.

To help achieve this, we established the Governance Advisory Board and the Risk and Assurance Committee, made up of external members who hold a diverse range of knowledge and experience. Each committee provides strategic and operational advice to aid us in maintaining customer confidence.

We revolutionise our data, statistics, and insights to anticipate customer needs

It is important for us to understand our customers and their needs to ensure we are delivering relevant data in an easily accessible and digestible manner.

We have begun moving away from relying on ‘designed’ data – surveys and censuses – to a higher use of transactional and ‘organic’ data. This was ever-present in our work during the COVID-19 lockdown period and has allowed us to think differently and expand on how we present our data and insights to new audiences.

We are reliable and push boundaries

We focus on developing a culture at Stats NZ where everyone is conscious of when to apply caution and when to experiment and drive for different opportunities and solutions. This requires consistently delivering high-quality services, which support our ability to provide the broader, fast-pace, value-adding leadership in response to the demands of the data ecosystem. This is particularly necessary in our response and aid to understanding COVID-19, as we began working from home to deliver key outputs to inform evidence-based decision-making.

We are a sustainable and efficient organisation

We are continuously adapting and changing to meet the needs of our customers and the demands of the data ecosystem. We are focused on creating a flexible and efficient operating model, including our internal processes. For this to happen in a timely and long-lasting manner, it will require an ongoing culture change.

Supporting our people Our people are the core of our organisation.

We aim to create a workplace environment that recognises achievements and facilitates employee growth. We welcome individuals of different skills, abilities, and experiences as this provides a creative, new, and different way of thinking.

The way we achieve an inclusive, healthy, and diverse workplace is set out in the following sections.

Diversity and inclusion

We continue to develop and embed methods and processes that are inclusive and support the rich diversity of our organisation. Our Diversity and Inclusion Working Group (DIWG) supports internal networks and groups and provides advice to internal stakeholders. The working group also links with other cross-government diversity initiatives and groups to remain connected and up to date with the latest guidance from sector leaders and the Public Service Commission.

Our newly-established Governance Advisory Board – Te Rau Kupenga: John Martin, Wendy Venter, Lilian Grace, Vic Crone, Nicki Crauford, Māui Hudson.

15STATS NZ’S ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2020

We continue to increase knowledge on the importance of inclusion through workshops and training on unconscious bias, pay equity, and understanding gender and sexuality, provided by in-house learning and with the help of local community groups like InsideOut.

As a government agency, we have signed the government Accessibility Charter9 and we are working towards making all information intended for the public accessible, delivering services in a manner that meets individual needs, and promotes independence and maintains dignity.

We added questions on disability to the June 2020 quarter household labour force survey (HLFS). Understanding more about the disabled community and their needs will help decision makers create and enact beneficial policies.

We are also committed to He Taurangi (The Panel Pledge), which aims to achieve more balanced representations

(going beyond gender and ethnicity) at conferences and on panels that we partake in. Our chief executive, organisation, and public sector leaders pledge to:

• set expectations upfront when asked to speak

• highlight diversity imbalance

• actively encourage diverse voices.

Our Executive Leadership Team: Rachael Milicich, Terry McCaul, Vince Galvin, Simon Mason, Mark Sowden, Craig Jones, Lyndsey Dance, Rhonda Paku, Christy Law.

9 Available from www.msd.govt.nz/about-msd-and-our-work/work-programmes/accessibility/the-accessibility-charter.html

“Understanding more about the disabled community and their needs will help decision-makers create and enact beneficial policies.”


Te ao Māori: Lifting cultural and language competence

Our People and Culture team and staff-led community of practice groups have been engaging across the organisation to lift cultural and language competence.

We began building an extensive range of waiata in late 2019 to perform for special occasions, such as chief executive Mark Sowden’s pōwhiri at the beginning of 2020. The Stats NZ waiata ‘Rarangi maunga,’ written for us by our kaihautū, has been taught over the last year by various members of the rōpū waiata to a wide range of groups within the organisation. It is especially well-known by our senior leaders who perform it regularly at meetings and significant events. Additionally, our rōpū waiata helps support wider Stats NZ initiatives by performing and sharing knowledge of tikanga Māori in shared spaces and platforms. This was exhibited by their contributions to the Pātaka app and their performance at the app’s launch in November 2019.

Our rōpū waiata group.

The Pātaka app is an interactive e-book in the format of a downloadable app. The app is designed to help our people pronounce te reo Māori words and gain a better understanding of tikanga Māori.

Lastly, we revived our Women’s Network, which aims to provide a safe environment for discussions around women specific issues, providing support and encouragement, and to celebrate the women and their supporters at Stats NZ.

“The app is designed to help our people pronounce te reo Māori words and gain a better understanding of tikanga Māori.”


Recruitment, selecting, and promoting STEM (science, technology, engineering, and mathematics) careers

As the STEM fields continue to grow at a rapid rate, our focus continues to be on attracting, supporting, developing, and retaining STEM talent.

We continue to work with industries to develop approaches that enable current and future employees to build their STEM skills. We are committed to developing a diverse and agile workforce, drive diversity and inclusion, challenge and coach leaders, understand unconscious bias, and work collaboratively to create a consciously inclusive workplace.

Employee development and promotion

This year we have created several new learning offerings aimed at supporting the development of our people.

Our leaders play a critical role in supporting our organisation to meet our goals, therefore supporting them is a priority. For new people leaders we have launched ‘Learning to lead’ – a programme that aims to help new leaders develop necessary management skills, setting them up for long-term success in their role.

We are also continuing our ‘Coaching for performance’ development for all people leaders and employees; continuing to upskill managers on using coaching in their leadership practice and embedding our coaching, development and feedback culture.

To be more responsive to Māori needs, we have invested in a new role focused on developing a Māori language plan and associated Māori development opportunities. This will take shape throughout 2020 and beyond.

Flexibility and work design

We are proud to be a flexible-by-default organisation, something that has been recognised by our people who continue to tell us that our flexibility is one of the best things about working at Stats NZ. Our technology and flexi-time policy enables our people to achieve a positive work-life balance that works for them and their whānau.

We have a diverse workforce of over 1,000 people made up of technical, corporate, and field staff. A large portion of our people are based in our Wellington, Christchurch, and Auckland offices, while the rest are field staff who work from home and remotely to engage with our respondents across the country.

Remuneration, recognition, and conditions

This year we continued to apply our remuneration practices in line with our collective employment agreement with the Public Service Association (PSA), in a way that ensures we remain competitive within the public sector market.

We operated robust processes for the design and sizing of jobs, with an emphasis on ensuing our roles and the recruitment practices used to fill them are inclusive of all genders, ethnicities, sexualities, and disabilities. We have committed to paying the living wage for eligible staff and have processes in place to review the sizing and remuneration of all roles as they evolve, or as the market moves.

We have completed a piece of historic correction work with respect to our like-for-like gender pay gaps following the guidance released from the Public Service

Our women’s network group at their relaunch.


Commission in 2019. We are also committed to continuing to work with the PSA on the Admin and Clerical Work Claim currently in process.

Health, safety, and wellbeing

Our leaders emphasise the importance of health, safety, and wellbeing at each of our offices and in the field by committing to create and maintain a safe and respectful work environment.

A ‘Health, safety, and wellbeing governance’ group, consisting of the Executive Leadership Team, supports us in championing the health and safety of our employees. Our management team also works with the PSA to propose and assist in developing and implementing guidance, systems, and processes which improve health, safety, and wellbeing practices.

This year, we focused on our risk protocols and developed a Stats NZ critical risk register with controls which are tracked by the different health, safety, and wellbeing committee structures.

We reviewed and updated current policies and guidelines, and developed new procedures relating to the health, safety, and wellbeing management system to ensure legislation compliance.

We offer all our people access to 24/7 free and confidential counselling support and have a volunteer group of employees (called ‘Wellbeing Kaiāwhina’) at each office who are trained in mental-health first aid.

Lastly, we developed a hazards and incidents (including near misses) reporting tool that aims to manage risks associated with potential work-related injuries and physical/physiological health conditions.

“We reviewed and updated current policies and guidelines, and developed new procedures relating to the health, safety, and wellbeing management system to ensure legislation compliance.”


Ā mātou mahi rautaki matua Our strategic objectives

IntroductionThis strategic objective revolves around engaging with our key customers, providing relevant data, and being reliable with our products. We will continue to deliver fundamental statistics that underpin our governance system and accurately describe New Zealand as it continues to change.

Providing transparency and relevant engagement is a crucial part of empowering the data ecosystem and unleashing the power of data to consistently meet the needs of our customers. This has been a key focus for us over this past year and will continue to pave the way for how we produce statistics in the coming years.

Nielson Social Licence Survey For the third time, Nielson conducted the Stats NZ’s Social Licence for Data Stewardship survey in which 86 percent of the 2,000 participants expressed trust in Stats NZ and how we look after their data. This overall result is similar to that of previous years, showing a continued trust and confidence in our products and services.

Throughout the 2019/20 financial year, we engaged with 197 government agencies, non-government agencies, international organisations, and the Pacific agencies. This surpassed our target by 79 and strengthened our partnerships across the various industries.

Originally planned for April/May 2020, the survey was delayed until July/August 2020, due to COVID-19. Further information on the results of this Social Licence Survey

can be found in the Appropriation performance measures section of this annual report.

IDI datasets Stats NZ’s integrated data is a critical tool in the government’s efforts to reduce poverty, improve health, and provide a growing, inclusive economy. It enables researchers to gain evidence-based insights, and to measure the effectiveness of government initiatives and services. Our Five Safes10 privacy and security requirements balance the benefits these insights can bring with keeping the data safe and protecting privacy.

We have two large integrated databases, the Integrated Data Infrastructure (IDI) and the Longitudinal Business Database (LBD). The IDI contains information about people and households, whereas the LBD contains information about businesses.

The IDI is a world-leading research database that contains linked data from government agencies, our surveys, and non-government organisations. Researchers from across New Zealand, inside and outside government, use integrated data to answer questions about important issues, events, and outcomes facing a wide range of New Zealanders.

10 Available from www.stats.govt.nz/integrated-data/integrated-data-infrastructure#data-safe

Strategic objective 1Growing customer confidence through relevance and reliability


Growth of integrated data As the integrated databases have become relevant and embedded in the machinery of government, the demand for access has increased. As of June 2020, we currently have 735 users accessing microdata across more than 250 projects. The 2019/20 financial year saw several new datasets added to the IDI, including Census 2018. A few of the new datasets that have become available are:

• Census 2018

• General Social Survey (GSS) 2018

• New Zealand Crime and Victims Survey (NZCVS)

• Ministry of Health interRAI

• Household Economic Survey (HES) 2018/19

• He Poutama Rangatahi

• Debt to Government (from Inland Revenue and Ministry of Social Development).

New integrated data projects in the past year In the 2019/20 financial year, we received 93 new applications to access microdata in the IDI for research projects. Government agencies, non-government agencies, and universities applied to study topics within social, health, education, and economic fields. Here is a snapshot of some projects that have been started in the IDI in the past year.

‘Hard to reach’ communities and their whānau

The Royal Commission on Inquiry into Abuse in Care is undertaking a project in the IDI to study the circumstances of ‘hard to reach’ communities. They wish to understand whether being a member of these communities or a member of their whānau is associated with poor social circumstances. This work is part of the wider focus of the Royal Commission to investigate those who were abused in state care or faith-based institutions. Work done for this project will form part of the substantive interim report to be presented to the governor-general and appropriate minister by the end of 2020.

Distributional impacts of trade

To explore characteristics of tradeable and non-tradeable firms, the Ministry of Foreign Affairs and Trade is using the LBD to look at employment and skill levels within firms by gender and ethnicity, as well as business owners. This work will flow into a larger piece of work that looks to evaluate the impact of trade agreements in New Zealand. The project will help them understand how trade and the impact of trade agreements will flow onto and be distributed across firms, individuals, and groups of society. The output will feed into a dashboard of metrics and information that they will publish alongside the main working paper.

Labour market outcomes for refugees

Researchers at the University of Auckland began a project in the IDI to look at the long-term outcomes in the labour market for refugees in New Zealand. To do this, they are conducting statistical analyses of data on refugees to identify a range of occupational, employment, and labour market characteristics. The findings of this study will develop predictors of positive or negative labour market outcomes and associated protective/risk factors. They will then be presented locally, internationally, and to government sectors, as well as being published in peer-review journals.

Te reo Māori pathways

The Government set a goal to have one million Kiwis speaking basic te reo Māori by 2040. Nicholson Consulting and Kōtātā Insight, supported by the Ministry of Education, are undertaking a project in the IDI to investigate the current state of te reo Māori literacy in New Zealand. This includes where te reo is heading with current levels of investment, and which investments will have the greatest impact on achieving the goal. An initial report will be prepared with the findings and a model of te reo will be developed that will show where we are now, where we will be in 20 years, and the potential future impact of different investments that are made now.


Transport and wellbeing

The Ministry of Transport, the New Zealand Transport Association, and Auckland City Council are investigating whether access to transport services and resources can influence one’s access to economic and social opportunities. By using data in the IDI, they are looking at different population groups according to their household characteristics, individual characteristics, and spatial location. This research should provide a more detailed picture of current transport accessibility for different social demographic groups and locations and identify population groups that are disadvantaged. From there targeted interventions and improvements can be developed.

Measuring child poverty The Child Poverty Reduction Act 2018 aims for a significant and sustained reduction in New Zealand’s child poverty. The Act requires government to set 3- and 10-year targets on four primary measures and the Government Statistician to report annually on 10 measures of child poverty.

In 2018/19 we expanded the HES to enable reporting these statistics by increasing the sample size from 3,500 to 20,000 households, better targeting of low-income and high-deprivation households, and using income data from administration sources.

In February 2020, we released the first statistics from the expanded survey. The nine measures reported that there were generally decreases in the low-income measures, though most of the changes likely reflect the expected uncertainties present in all sample surveys. There was no significant change to material hardship rates. The 10th measure, persistent poverty, will be reported on from the 2024/25 financial year.

The increase in the HES sample size has meant that, for the first time, we are able to produce child poverty statistics for different ethnic groups and for different regions in New Zealand. The results show that, while there are children from all ethnic groups living in households with relative low income and in relative material hardship, the

rates for Māori and Pacific peoples are higher across most measures compared with the national average. While we do not yet have the data available to produce comparable statistics for past years for different ethnicities, we will continue to monitor trends going forward.

New approaches to household surveysStats NZ is facing a challenge that is shared with many other national statistical organisations around the world. Maintaining high response rates in face-to-face surveys is becoming increasingly more difficult.

One of our focuses has been to improve response rates in the ‘hard to contact’ and ‘hard to convert’ segments of the New Zealand population. We have been testing new ideas to help raise response rates.

Bay of Plenty collections trialIn late 2019, we ran a trial in the Bay of Plenty to gain insights into how our social licence can be influenced by marketing and collection approaches.

The primary objective was to test whether we can achieve a high achieved sample rate (ASR), and how marketing collateral and promotional activities can influence this. We also wanted to raise awareness of the HES and HLFS and of Stats NZ.

The test sample consisted of approximately 440 households across the Bay of Plenty. We aimed to demonstrate the value of our surveys by explaining in simple terms what the data can be used for, and how it could benefit the respondent and/or their community.

We advertised through community newspapers (advertisement and advertorial), iwi radio and mainstream radio (interview and advertisement), social media advertising, posters, and postcards.

The ASR for HES was higher in November by more than 2 percent when compared with previous months and December was higher again by a further 1.5 percent. The HLFS postcard was successful, with more respondents


finding the postcard helpful (67 percent) than the standard pre-notification letter (51 percent).

A second advertising trial will begin in the second half of 2020, for which the results of the first trial will inform the approach.

Trialling other collections approachesDuring the COVID-19 lockdown, our usual approach of visiting households to conduct surveys was placed on hold.

We tried several new approaches during this time to encourage respondents to take part in our surveys. We had a good response from the public, particularly from an approach asking householders to phone in to do their survey.

Other approaches we trialled included ‘lumpy mail’ and incentives.

‘Lumpy mail’ describes an envelope that contains both our message in the form of a letter, and something ‘lumpy’, which can be marketing collateral such as a pen or magnet. ‘Incentives’ are items mailed to the front door, such as supermarket vouchers and mugs.

The formal letter request to take part was posted to respondents, along with one of the following: a personalised handwritten note, pen, fridge magnet, or a small token of appreciation, such as a Stats NZ-branded coffee mug or grocery voucher.

The resulting levels of cooperation allowed us to continue to collect enough data to maintain the production of our official labour market statistics.

We will build on the findings of these approaches as we continue to explore new possibilities for raising response rates.

Sex and gender as part of GSS and HES The 2018 General Social Survey (GSS) included a question about sexual identity for the first time. Questions around sex at birth and gender identity, as well as sexual identity, were also introduced into the 2019–2020 HES which collected responses from over 20,000 households.

These additions to our surveys will help capture the diversity of our population in terms of sex, gender identity, and sexual identity. Data on these areas is limited globally, but vital for continuing to build an inclusive and diverse society.

We have been working alongside interest groups and agencies to better understand these topics and how to collect more robust data about them. As part of this process, a public consultation was launched around proposed changes to the sex and gender identity statistical standards.

Questions on sex at birth, gender identity, and sexual identity will be included as part of the core demographics in all Stats NZ household surveys, and we will continue to review how the questions are performing and adjust as required.


Introduction This strategic objective revolves around making our data more easily accessible and digestible to our customers. This is crucial for fulfilling our vision of unleashing the power of data to change lives. By expanding our customers’ use of existing data, New Zealanders will be able to make decisions that will beneficially address the needs of their communities.

We strive to remove barriers that will restrict access to our data and are continuously working to lift the capability of future data users.

Supporting small businessesOur Customer Service Delivery team participated in the first ever ‘Kiwi Business Boost’ event run by business.govt.nz last November.

Held in Hawke’s Bay, this event revolved around bringing together experts from a range of government and other agencies to support small businesses. It consisted of free one-on-one expert sessions, workshops, and listening to inspiring stories from small businesses.

Our team ran two 2-hour sessions each day on:

• getting started – registering, planning, naming, research, structure, funding

• growth – sales, marketing, innovation, grants, exporting, accessing finance, using digital technology.

It was great to be included in the ‘Kiwi Business Boost’ event where we could show how useful and beneficial data and statistics can be when building a business.

GovHack International Awards In November 2019, we featured at the GovHack International Awards ceremony in Canberra, Australia.

GovHack is a competition involving teams from Australia and New Zealand where each team is given a weekend to create a tool that uses government agency open data to solve civic problems.

Stats NZ staff were part of a team that created the ‘Movely’ application, which won the ‘Reducing CBD Traffic Congestion’ challenge, sponsored by Infosys. The data used to create this application showcased how our customers can use our data and information in a way that suits their needs to benefit their communities.

The week prior, a Stats NZ team won three awards at the GovHack New Zealand awards ceremony held in Whanganui. These were the:

• ‘Best Creative Use of Technology’ award, sponsored by Proaxiom

• ‘Best Use of Data to Assist in an Emergency’ award, sponsored by Whanganui District Emergency Management

• ‘Combatting the Climate Emergency’ award, also sponsored by Proaxiom.

Strategic objective 2Expanding customer use of existing data through improved accessibility


Strategic objective 3

Enabling sound decision-making through providing relevant, reliable, and accessible data that reflects Māori communities

Introduction

This strategic objective is all about connecting, engaging, and empowering Māori and iwi communities to use data to enhance their wellbeing. We are building on our relationships with Māori communities, iwi, and organisations to ensure sound decisions can be made to reflect their needs.

In accordance with te Tiriti o Waitangi (the Treaty of Waitangi) and our commitment to the revitalisation of te reo Māori (under the Maihi Karauna strategy11), we are developing and implementing strategies to support the accuracy and accessibility of Māori data.

We are progressing relationship agreements with individual iwi as part of their Treaty of Waitangi Deeds of Settlement. These agreements set the foundation for building long-term relationships in order to meet strategic outcomes for both parties.

Mana ŌriteThe Mana Ōrite Relationship Agreement was signed between Stats NZ and the Data Iwi Leaders Group (Data ILG) of the National Iwi Chairs Forum (NICF) on 30 October 2019. A ceremonial resigning took place in Rotorua on 13 December 2019 between our executive leadership team and representatives of the Data ILG.

The agreement describes a relationship derived from Te Tiriti o Waitangi between Stats NZ and the Data ILG, as Crown and Māori representatives having ‘mana ōrite’ or equal explanatory power. It sets out our commitment to work together through agreed relationship principles, goals, and deliverables that will give effect to the mana ōrite relationship.

This agreement aims to help create a future that benefits all New Zealanders – te oranga whānui o Aotearoa – by realising the potential of data to make a sustainable positive difference for iwi, hapū, and whanau. It acknowledges our commitment to work across the public sector data system to improve access to data and increase opportunities for iwi, hapū, whānau and representative Māori organisations.

The relationship is supported by a funding agreement (He Whakaaetanga Putea) with Te Kāhui Raraunga Charitable Trust (the legal entity for this relationship) and work programme that defines annually agreed outcomes. In 2020, the work programme includes four workstreams:

• examine and develop ways of addressing the disproportionate effects for iwi of 2018 Census results

• improve administrative data to ensure a sustainable and diversified flow of relevant iwi data for Māori

• develop a Māori data governance proposal

• develop a scope of work proposal for potential Te reo Māori specific datasets.

All workstreams are on track for delivery in the 2020 calendar year. Te Tohu Rautaki Angitū Māori (TTRAM) are the relationship lead and provide oversight of the work

11 Available from https://www.tpk.govt.nz/en/a-matou-kaupapa/maihi-karauna

https://www.tpk.govt.nz/en/a-matou-kaupapa/maihi-karauna

https://www.tpk.govt.nz/en/a-matou-kaupapa/maihi-karauna


programme, with contributions from multiple business units across the organisation.

The Mana Ōrite Relationship Agreement and work programme is one of the top priorities under Pou Tāngata for the Crown joint work programme with the NICF. There is much interest in this work as an approach for successful Māori-Crown relationships.

Tatauranga umanga Māori In June 2019, we released Tatauranga umanga Māori – Statistics on Māori businesses: 201912. This publication provides insights into the contribution of Māori businesses to the New Zealand economy. It covers key topics including tourism, exports, and agriculture, and is published in both te reo Māori and English.

Statistical and data products and insights about Māori businesses have many identified uses, including:

• providing a diverse range of iwi and Māori stakeholders with an understanding of their businesses’ contribution to the economy

• measuring the effectiveness of government policies for Māori businesses

• identifying opportunities for growth within the Māori business sector.

One of the key challenges we face producing these statistics is being able to identify Māori businesses reliably. Tatauranga umanga Māori (TUM) relies on a narrow definition to produce a compilation of Māori business statistics from existing Stats NZ data sources. This has limited our ability to measure and report on all Māori businesses across the country and the diverse contributions they make to the New Zealand economy.

Our kaihautū Rhonda Paku and Data Iwi Leaders Group lead technician Kirikowhai Mikaere at an internal presentation of the Mana Ōrite Relationship Agreement.

12 Available from www.stats.govt.nz/information-releases/tatauranga-umanga-maori-2016-statistics-on-maori-businesses

http://www.stats.govt.nz/information-releases/tatauranga-umanga-maori-2016-statistics-on-maori-businesses

http://www.stats.govt.nz/information-releases/tatauranga-umanga-maori-2016-statistics-on-maori-businesses


We are currently exploring ways to improve coverage of Māori businesses and understand our customers’ data needs. This coming year we have committed to undertaking a consultation process with stakeholders across the Māori business sector and government to address these challenges. Engaging and working in partnership with Māori is a high priority for us, and this process will provide the organisation with an opportunity to ensure future TUM releases better reflect Māori needs and interests in data.

Partnering with MāoriWorking with Māori communities to improve access to data that reflects their needs is a priority for us. Here are three examples of collaboration from the 2019/20 financial year.

Ngā Tūtohu – Indicators Aotearoa New Zealand

Stats NZ and the Tūhono Trust have entered a partnership to develop te ao Māori indicators. A Te Ao Māori Collaborative Forum has been established by Tūhono Trust to engage and communicate with Māori in this work. A corresponding stakeholder group has been set up with government agencies and other interested parties by Stats NZ.

Tūhono Trust undertook a survey in October/November 2019 on who Māori think are responsible for their wellbeing, the relevance of te ao Māori and tikanga Māori to their future, which issues are considered of most importance, and the future role and value of the Treaty of Waitangi.

Engagement with Māori to produce frameworks and indicators of a te ao Māori view of wellbeing has also been impacted by COVID-19.

Our infographic on Māori authority businesses from the Tatauranga umanga Māori – Statistics on Māori businesses: 2019 release.

Tatauranga Umanga Māori: Overall infographic

Māori Authority Business

Agriculture

All other industry

Other primary industry

17%

6%

44%

33%

TATAURANGA UMANGA MĀORI VISUALISATION MOOD BOARD PAGE NINE

Non-residential Property Operators

Percentages are based on rounded numbers, and may not sum to 100.


Te Ara Takatū

Te Ara Takatū, or the iwi data trial, is an agreement between Stats NZ and the Data ILG to provide iwi and iwi-related groups free access to data from the 2001, 2006, and 2013 Censuses, Te Kupenga, and the longitudinal census through the Integrated Data Infrastructure. The intent is to fulfil Stats NZ’s commitment to te Tiriti o Waitangi to enable iwi and iwi-related groups access to data, to build capability in data and insights, and to further Stats NZ’s understanding of the barriers to data access, including cost.

As of June 2020, 15 customised data requests and 45 free enquires had been made through Te Ara Takatū by iwi or iwi-related groups during the financial year. A total of 166 requests were received, with the remainder being from other entities or the general public, who were not covered by the agreement.

Te Kupenga 2018

In April 2020, we released provisional data from Te Kupenga survey, which provides key statistics on four areas of Māori cultural wellbeing:

• wairuatanga (spirituality)

• tikanga (Māori customs and practices)

• te reo Māori (the Māori language)

• whanaungatanga (social connectedness).

The survey’s content recognises practices and wellbeing outcomes that are specific to Māori culture, such as the knowledge and use of the Māori language, connection to marae, and whānau wellbeing.

Changes were made to the survey since Te Kupenga first ran in 2013, including an increased sample size (from roughly 5,500 responses in 2013 to 8,500 responses in 2018) and the inclusion of a new module – kaitiakitanga (guardianship and protection).

Final benchmark figures for 2018 Te Kupenga data will be released in the 2020/21 financial year.

Designing guidance for working with Māori data Within this past year, we have been working with Māori on a variety of guidance and policy to ensure their data is being stored, accessed, and used in a culturally appropriate and respectable manner. This work is ongoing and aims to improve the trust and confidence in our data and statistics amongst Māori communities.

Māori data governance proposalThe co-design of a Māori data governance model is a workstream of our Mana Ōrite work programme with the Data ILG. This is a high priority initiative for the Government Chief Data Steward and Stats NZ that will provide the New Zealand government with a unique opportunity to develop an approach to data governance that reflects te ao Māori needs and interests in data.

The model will be co-designed by a ‘te ao Māori’ group made up of Māori data experts representative of te ao Māori, and a Kāwanatanga (government) group that is representative of key government agencies that have an interest in Māori data governance.

This work will deliver a report presenting and evaluating co-designed options for data system governance model(s) embedded with te ao Māori perspectives, due in December 2020.

Cloud data storage In 2019, we responded to a request from the Data ILG to develop a cloud storage priority paper outlining the benefits, risks, and mitigations of storing iwi and Māori data in ‘the cloud’, through a te ao Māori lens. This paper will contribute to the wider government cloud data storage strategy and will provide guidance to government agencies in their decision-making when storing data in the cloud, in which Māori have rights and interests. This work is ongoing and will be completed in 2020.


Ngā Tikanga Paihere

Mā ngā tikanga e arahina – Be guided by good principles

To help us build trust and confidence in the way we manage access to microdata for research purposes, we developed a framework, Ngā Tikanga Paihere, to:

• guide safe, responsible, and culturally appropriate use of data

• ensure data use is carefully considered for the communities it represents and affects

• ensure data practices occur in good faith.

This framework is intended to build trust and confidence in the way we manage access to the Integrated Data Infrastructure (IDI). It is applied to microdata research

applications that focus on our most marginalised sections of society, including under-represented ethnicities or other groups at risk of negative harm through data use.

The framework was designed in 2018 with the help of Dr Māui Hudson, Associate Professor at the University of Waikato. It was tested as a tool alongside the Five Safes13 framework to review access to microdata for research purposes, and it was successful. Early drafts were socialised in the public domain in 2019 and it was released by Stats NZ in early 2020. Because it has a strong principles-based approach to using data, Stats NZ plans on building it into other areas of the organisation over time.

13 Available from www.stats.govt.nz/integrated-data/integrated-data-infrastructure#data-safe

Visual summary of Ngā Tikanga Paihere framework.


IntroductionThis strategic objective is all about collaborating and maintaining strong partnerships with our international counterparts and national stakeholders to continuously design and shape our data ecosystem. We proudly work and consult with international statistical agencies and commissions, national agencies, communities, iwi, and Māori to deliver relevant data that underpins significant social and commercial decisions.

We aim to foster a strong and inclusive environment that uses data to build and promote the collective wellbeing of all New Zealanders and strengthens our international relations. In the coming year, we will continue to showcase how data can change the lives of all individuals through our outputs and collaborative efforts.

Open Data Expert Group and UN Economic Commission for Europe As New Zealand’s leading data agency, we contribute to inter-governmental meetings as a member of the Open Data Expert Group and the United Nations Economic Commission for Europe (UNECE).

In 2019, we attended a series of meetings in Paris primarily focusing on the sustainable development goal indicators. Global challenges around the data ecosystem leadership, accessing and using new data sources, and partnering with private data suppliers were also discussed.

Our deputy chief methodologist successfully chaired a session on approaches to data system leadership, which generated a considerable amount of discussion and engagement from the UNECE members. As a result of our constructive contributions at the Conference of European

Statistics, we were considered one of the leading national statistical offices.

Towards the end of 2019, we returned to Paris and attended a series of meetings at the OECD focusing on a range of topics, including:

• how to include international and local work on digitalisation

• the changing labour markets

• measuring ‘infrastructure’

• producing thematic economic perspectives of society.

These topics, and many others, are areas of importance to New Zealand’s economic picture.

Two papers, Accommodation and the sharing economy in New Zealand, and Recent developments in distributional national accounts for New Zealand, were presented at meetings throughout the week. Both papers were well received and showcased how we are contributing to the contemporary issues facing statisticians.

Supporting the United NationsThroughout the year, we attended and participated in events hosted by the United Nations all over the world.

The first event, Workshop on Culture Evolution, was hosted in Geneva, Switzerland in September 2019, and involved representatives from statistics offices across the globe. Our chief people officer at the time attended and presented twice over the week. This event was a success with our statistical, data, and analytic (SDA) job family tool gaining large amounts of interest.

Strategic objective 4 Leading an effective government data system through partnerships and strong relationships


In March, the government statistician and chief executive (GS/CE) attended the United Nations Statistical Commission in New York, USA. The week revolved around the key themes of data stewardship and modernisation, and the need to use a range of new data sources – both of which we have been focusing on over the past years through various initiatives.

The GS/CE participated in a panel about the System of Environmental-Economic Accounting and gave a keynote speech at a session about the future role of national statistical offices and data stewardship.

We are proud to be viewed as leading and shaping the thinking within the international statistical community in this regard. The UN Statistical Commission week is an important annual exercise that enables those attending to represent New Zealand in a significant international sharing opportunity.

The final piece of UN work we contributed to last year was the UN Friends of the Chair International Working Group. This working group consisted of 12 country representatives and eight international agencies. The working group focused on two workstreams, ‘Fundamental principles of official statistics’ and ‘Open data,’ where our deputy government statistician/deputy chief executive and our deputy chief methodologist were the chairpersons.

At the request of the UN Statistical Commission the ‘Fundamental principles of official statistics’ workstream produced guidance chapters on:

• an evaluation criteria and recommended actions on assisting countries in transitioning their official statistical systems towards compliance

• the implementation of the fundamental principles when using new data sources for producing official statistics.

The Open Data Working Group, a subgroup within the UN Friends of the Chair, focused on synthesising existing open data work into a background document (jointly led by our deputy chief methodologist and the Open Data Watch organisation14) and the development of a good practice guidance document that considers geographical areas, content, and the balance between openness and privacy for local-level statistics.

The work produced in both streams were well received by the UN and statistical colleagues from around the world.

2019 Digital Nations Summit The annual Digital 9 Ministerial Summit15 brings together representatives to share good practice, thought leadership, and common approaches to realising national digital ambitions.

Held in Montevideo, Uruguay in November 2019, the summit consisted of bilateral meetings and a ministerial summit. Stats NZ’s acting general manager for systems and partnerships represented the Minister of Statistics.

The Digital 9 countries have taken the lead digital government, with user-focused design principles and efforts to share open source solutions with other nations.

The Department of Internal Affairs leads New Zealand’s involvement, with Stats NZ holding responsibilities as part of the Data 360 Thematic Working Group.

14 See https://opendatawatch.com/

15 See https://www.leadingdigitalgovs.org/

Government statistician and chief executive Mark Sowden speaking on a panel at the United Nations Statistical Commission, New York.

https://opendatawatch.com/

https://www.leadingdigitalgovs.org/


Our six student interns from Victoria University of Wellington with Paul Clarke, as part of the Taihonoa Summer Internship programme.

‘Shaping the Future through Technology’ was the summit theme, and Stats NZ joined the thematic group panel alongside the UK and Estonia, to give a presentation on the inception, pillars, and development of our Data Strategy and Roadmap.

Māori university students intern over summerAs part of the Taihonoa Summer Internship programme, we welcomed six Māori Victoria University of Wellington students as interns for 10 weeks.

Based in the Stats NZ Wellington office, the interns contributed to our Administrative Data, Data Leadership

and Capability, Customer Experience, and International Business Performance Statistics divisions.

Organised by Stats NZ’s Te Tohu Rautaki – Angitu Māori team, this partnership between Victoria University of Wellington and Stats NZ enabled students to gain real work experience in a fast-paced environment.

Pacific programme – supporting Tokelau In October 2019, we hosted the government statistician of Tokelau, Mr Kele Lui, as part of the Pacific Support Programme. As one of the Pacific realm countries, Tokelau receives technical support from several of New Zealand’s


government agencies, including Stats NZ on trade and economic statistics (funded by the Ministry of Foreign Affairs and Trade’s Aid Programme).

Mr Lui spent time with Stats NZ insight analyst Mark Hooper, who later joined him in the Pacific to support the Tokelau National Statistics Office (TNSO) end-of-year population count.

Based in Apia Samoa, Mr Hooper spent three months at the TNSO on secondment helping the team of determined locals publish the population count in February.

Monthly employment indicators In November 2019, we collaborated with the Reserve Bank to release a new way of reporting employment indicators on a monthly basis. This new series provides an early indication of changes in the labour market and uses a combination of data from two different Inland Revenue sources: The employer monthly schedule and payday filling.

Industries and sectors that will be available in this monthly employment indicator are:

• primary industries – ANZSIC06 divisions A (Agriculture, Forestry and Fishing) and B (Mining)

• goods-producing industries – ANZSIC06 divisions C (Manufacturing) to E (Construction)

• services industries – ANZSIC06 divisions F (Wholesale Trade) to S (Other Services).

This data covers workers with wages or salaries taxed at source, employees on paid leave, non-New Zealand residents, armed forces, and self-employed with wages or salaries. Contractors are excluded.

In May 2020, we made further changes to how we define filled jobs and gross earnings, and how we compare filled jobs with other Stats NZ labour market outputs. These changes were made due to redefining our methodology around underlying tax data.

This release is also the first milestone in our work to expand Stats NZ’s business data collection.

Environmental reporting This year we completed two joint environmental reports with the Ministry for the Environment. They showed how our marine environment and freshwater bodies continue to experience pressures from the combined effects of our activities – both on land and in our oceans. Both reports build on those of the past and present new gaps in our environmental knowledge.

New Zealand’s environmental reporting series: Our marine environment 201916 focused on four priority marine issues:

• biodiversity loss

• activities on land

• activities at sea

• climate change.

The 2019 report is the first of the environmental reporting series to use data generated through citizen science to inform our understanding of coastal litter.

New Zealand’s environmental reporting series: Our Freshwater 2020 showed that excess nutrients, chemicals, disease-causing pathogens, and sediments all contribute to pollution in New Zealand’s freshwater bodies.

16 Available from www.stats.govt.nz/information-releases/new-zealands-environmental-reporting-series-our-marine-environment-2019

http://www.stats.govt.nz/information-releases/new-zealands-environmental-reporting-series-our-marine-environment-2019




69% said we have an issue with changes in weather patterns

Environmental perceptionsWe asked New Zealanders for their thoughts about the state of our environment

80% said we have an issue with the state of rivers, lakes, streams, wetlands, and aquatic life

74% said we have an issue with the state of oceans and sea life

74% said we have an issue with plant and animal life becoming endangered or extinct

49% said we have an issue with air pollution

We also asked those who thought there was an issue, what they thought the main cause was

What our environmental reporting data tells us

Most thought vehicles are the main cause of poor air quality

Almost half said farming is the main cause of an issue with fresh water quality

Most cited household waste or sewage/stormwater discharge as the main cause of an issue with the state of oceans and sea life

Data from the 2018 New Zealand General Social Survey and Environment Aotearoa 2019.

www.stats.govt.nz

Pests and deforestation were thought to be the main causes of endangered species

Most thought an activity that contributes to greenhouse gas concentrations in the atmosphere is the main cause of changes in weather patterns

Vehicle emissions do contribute to air pollution in NZ, but burning wood and coal primarily for home heating is the leading cause. However, NZ’s air quality is generally good, particularly compared to heavily industrialised countries.

NZ’s climate is warming due to increasing concentrations of greenhouse gases in the atmosphere, mainly from the combustion of fossil fuels worldwide.

Introduced species are one of the biggest threats to our native species. Other significant pressures include habitat loss and pollution. Almost 4,000 of NZ’s native species are currently threatened with or at risk of extinction.

Significant pressures on NZ’s marine environment include fishing, pollution, climate change, and invasive species.

Rivers in areas of pastoral farming have between 2 and 15 times higher median concentrations of nutrients, pathogens, and sediment than natural conditions.

0 20 40 60

Urban development

Vehicles/transport

Forestry/deforestation

Climate change

Other reasons

Industrial activities

Percent

0 20 40 60

Farming

Household waste

Other reasons

Urban development


Vehicles/transport

Percent

0 20 40 60

Pest/weedsOther reasons

Forestry/deforestationUrban development

Industrial activitiesHousehold waste

Sewage/stormwaterFarming

Percent

Percent

0 20 40 60

FarmingIndustrial activities

Other reasonsUrban development

Forestry/deforestationPests/weeds

Percent0 20 40 60

Urban developmentFarming

Other reasonsIndustrial activities

FishingSewage/stormwater

Household waste













www.stats.govt.nz








0 20 40 60

Urban development

Vehicles/transport


Climate change

Other reasons


Percent

0 20 40 60

Farming

Household waste

Other reasons

Urban development


Vehicles/transport

Percent

0 20 40 60





Percent

Percent

0 20 40 60




Percent0 20 40 60




Household waste














www.stats.govt.nz








0 20 40 60

Urban development

Vehicles/transport


Climate change

Other reasons


Percent

0 20 40 60

Farming

Household waste

Other reasons

Urban development


Vehicles/transport

Percent

0 20 40 60





Percent

Percent

0 20 40 60




Percent0 20 40 60




Household waste













www.stats.govt.nz








0 20 40 60

Urban development

Vehicles/transport


Climate change

Other reasons


Percent

0 20 40 60

Farming

Household waste

Other reasons

Urban development


Vehicles/transport

Percent

0 20 40 60





Percent

Percent

0 20 40 60




Percent0 20 40 60




Household waste


This report focused on four priority freshwater issues:

• the threat on our indigenous freshwater species and ecosystems

• pollution of water in urban, farming and forestry areas

• effect of changing water flows on our fresh water

• effect of climate change on our fresh water.

We have also actively worked with the Parliamentary Commissioner for the Environment on their review of Focusing Aotearoa New Zealand’s environmental reporting system17. Published in November 2019, this review included several recommendations for changes to the Environmental Reporting Act 2015 (including frequency and focus of reporting), to the operating relationship between Stats NZ and the Ministry for the Environment, and the wider monitoring and reporting system.

It highlights several changes to improve the system, including collection standards, classifications, and enabling the ongoing production of an enduring set of environmental indicators for environmental reporting.

Data Ethics Advisory Group In July 2019, the Government Chief Data Steward (GCDS) convened a Data Ethics Advisory Group to help maximise the opportunities and benefits from new and emerging uses of data, and responsibly manage potential risks. The group was formed in response to the findings of the algorithm assessment report, jointly released by Stats NZ and the Department of Internal Affairs in 2018.

The Data Ethics Advisory Group allows government agencies to test ideas, policy, and proposals relating to new and emerging uses of data, trends, issues, areas of concern, and areas for innovation. The group is made up of eight individuals appointed by the GCDS, with their expertise covering:

• privacy and human rights law

• ethics

• innovative data use and data analytics

• te ao Māori

• technology

• public policy

• government interests in the use of data.

The group meets four times a year, and its function and membership will be reviewed towards the end of the 2020 calendar year.

Open data programme The formal phase of the Open Government Information and Data Programme ended on 30 June 2020.

The Open Government Information and Data Programme is a cross-government effort to support:

• adopting the New Zealand Government Open Access and Licensing framework (NZGOAL)

• declaring an open and transparent government

• the New Zealand data and information principles.

Through outreach activities including events, meet ups, workshops and a champions network, the Open Data Programme has connected technical, subject-matter, and geographic interest groups.

There are now more than 15,300 government datasets openly available to all New Zealanders on the data.govt.nz data catalogue18. This includes many high-value datasets identified by data users and surpasses the initial target of 7,000 open datasets by 2020.

17 Available from www.pce.parliament.nz/publications/focusing-aotearoa-new-zealand-s-environmental-reporting-system 18 Available from https://catalogue.data.govt.nz/dataset

http://www.pce.parliament.nz/publications/focusing-aotearoa-new-zealand-s-environmental-reporting-system

http://www.pce.parliament.nz/publications/focusing-aotearoa-new-zealand-s-environmental-reporting-system

https://catalogue.data.govt.nz/dataset


Open data, open potential In March, we hosted Open Data, Open Potential 202019, which aimed to inform, challenge, and inspire the attendees.

The headline speaker was Carlos Rozo, former Director of Digital Government in Colombia. The presentation focused on the ways Colombia has used open data to fight corruption and improve transparency.

Other speakers included:

• Deborah Lemon who developed navigateyourway.co.nz – a website helping people in need access resources without having to visit numerous websites or agencies.

• Chris Mardon, chief data officer at Hamilton City Council, on his pragmatic ‘open by design’ strategy, which involved 12 Waikato councils to create an open data pipeline – the Waikato Data Portal.

The event concluded with an expert panel including Suzanne Snively, chair – Transparency International New Zealand; Keitha Booth, ex-director – Open Government Data & Information Programme; Evelyn Wareham, chief data and insights officer – Ministry of Business, Innovation and Employment; and Emma Naji, executive director – AI Forum. The panel offered a glimpse into the future of open data in New Zealand and encouraged the audience to keep pushing forward in their own organisations.

First data content requirements published Earlier this year we published the first approved data content requirements, to establish a consistent way for government agencies to collect, format, record, and store information about a person’s name, date of birth, and street address20.

As the functional lead for data, the government chief data steward (GCDS) works with government agencies to co-design, develop, and implement short data content requirements, tapping into specialised expertise.

Publishing the data content requirements was the culmination of a complex two-year project, with representatives from a wide range of organisations being involved in their identification and development.

The requirements built on existing international standards and guidance for good practice, as well as those developed locally by Te Tari Taiwhenua Department of Internal Affairs and Toitu te whenua Land Information New Zealand.

Agencies are now driving the implementation of the content requirement, with timeframes informed by organisational needs, and we will continue to provide support and advice.

The next round of data content requirements has been identified to include location, phone number, Māori descent, and iwi affiliation.

19 See https://data.govt.nz/events/open-data-open-potential-2020

20 Available from www.data.govt.nz/manage-data/data-content-standardisation/register-of-government-data-content-requirements/

http://www.data.govt.nz/manage-data/data-content-standardisation/register-of-government-data-content-requirements/



https://data.govt.nz/events/open-data-open-potential-2020

37STATS NZ’S ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2020 37

Algorithm charter for Aotearoa New ZealandIn 2018, the Government undertook a review of how government agencies use algorithms to improve the lives of New Zealanders. The Algorithm assessment report21 aimed to ensure New Zealanders are informed about the use of government algorithms and the checks and balances that exist to manage their use.

The report drew on the Principles for the safe and effective use of data and analytics22 developed by the privacy commissioner and the government chief data steward and made recommendations to improve transparency and accountability in government algorithm use.

The Algorithm Charter for Aotearoa New Zealand is one response to the recommendations and a world first.

Consultation on a draft charter ran from October until December in 2019 and was highlighted in local and international media. Submissions were solicited from stakeholders including central government agencies, academics, and non-government organisations. The consultation was also promoted at the All-of-Government Innovation showcase and discussed on Twitter in a session facilitated by Internet NZ.

An initial cohort of 20 signatories signed the finalised Algorithm Charter for Aotearoa New Zealand in July 2020.

21 Available from https://data.govt.nz/use-data/data-ethics/government-algorithm-transparency-and-accountability/algorithm-assessment-report/

22 Available from www.privacy.org.nz/news-and-publications/guidance-resources/principles-for-the-safe-and-effective-use-of-data-and-analytics-guidance

https://data.govt.nz/use-data/data-ethics/government-algorithm-transparency-and-accountability/algorithm-assessment-report/



http://www.privacy.org.nz/news-and-publications/guidance-resources/principles-for-the-safe-and-effective-use-of-data-and-analytics-guidance





Ngā inenga whakatutukinga ki ngā rironga pūtea Appropriation performance measuresThis section reports on the appropriation performance measures of Stats NZ for the year ended 30 June 20201.

Official statistics multi-category appropriation performance measuresThe single overarching purpose of this appropriation is to ensure the availability and promote the use of the highest priority data and official statistical information to add value to decision-making.

This appropriation is broken down into three categories.

Official statistics

This category is intended to achieve the outcome of empowering decision-makers by adding value to New Zealand’s most important data.

Data and statistical information services which includes two aspects:

• Economic and business data and statistical information services This category is limited to the delivery of data and statistical information services relating to business and the economy.

• Population, social, and labour market data and statistical information services This category is limited to delivery of data and statistical information services relating to the population, environment, household economics, social conditions, and the labour market.

Stewardship of government data and statistical activities

This category is limited to the coordination of statistical and data services for government through leadership of the Official Statistics System, oversight of the IDI, liaison with partners and customers, provision of ministerial services, statistical and data management advice, and the operation of access channels.

1 2018 Census of population and dwellings multi-year appropriation measures are included in the 2018 Census section on pages 8–9.


Official statistics categoryThese performance measures are intended to achieve the outcome of empowering decision makers by adding value to New Zealand’s most important data.

How we measure our successAt the end of June 2020, the percentage of positive responses by customers who were asked if they could find what they were looking for on our website was 42 percent. This represents a 2 percent increase compared with last year but remains below our target. Fifty-two percent of our customers responded positively when asked how easy the information was to understand in our website. This is 8 percent below the target. Both measures are below target reflecting the content on the website is aimed at more technical users while a wider customer base provided feedback to the pop-up question on the website.

We used a qualitative survey to understand key customers’ use of data to inform two of the measures below. This year we interviewed 17 organisations (eight more than in 2019); 16 of the 17 organisations reported they use Stats NZ data to make informed decisions – one was unsure. Ten organisations also reported their use of Stats NZ data to make evidence-based decisions had increased compared with the previous year. These positive results indicate the continued value customers place on the data we provide.

A system-wide data investment plan commenced in the 2019/20 with the expectation of Cabinet agreement on Tier 1 stats for the government system by June 2020. However, our consultation process with government agencies was interrupted in early February as government agency staff were diverted to COVID-19 response planning. This work is ongoing as at 30 June 2020 with the report to Cabinet rescheduled to 2020/21.

Table 1

Official statistics – performance information

Assessment of performance by measure 2019/20 2019/20 target 2018/19 Variance to

target result

The percentage of Statistics New Zealand’s selected key customers that report increasing use of data to make evidence-based decisions1.

59% 20% 56% +39%

The percentage of key customers that perceive statistics help them make informed decisions 94% 85% 100% +9%

The percentage of positive responses to the pop-up question on Stats NZ’s website ‘did you find what you were looking for’?2

42% 60% 40% -18%

The percentage of positive responses to pop-up question on Stats New Zealand’s website ‘how easy the information was to understand?’

52% 60% New measure -8%


The percentage of Statistics NZ’s published data available at a 3, 4, and 5 star open data standard3 94% 96% – Level 3 96% -2%

Ensure the right statistical information is produced by the Official Statistical Systems to better support decision-making and understanding

Not achieved

Tier 1 stats to be prioritised & agreed by

Cabinet

AchievedReport

rescheduled to 2020/21.

1. First two metrics come from Key Customer face-to-face survey with 17 key customers. This was scheduled for the fourth quarter 2019/20 however due to COVID-19, was conducted over a period of two weeks from 17 to 30 July 2020. The 2019/20 target was also set before the 2018/19 result was known.

2. All visitors to Stats NZ’s stats.govt.nz website was given the opportunity to complete the pop-up survey questions. During 2019/20, 1,232 website visitors participated in the survey between 1 July 2019 and 30 June 2020.

3. Published data met 94% of the level 3 of the open data standard. Open data is data anyone can use and share. Open data from Stats NZ meets the first three of the five levels of the standard:

• Level 1 data is visible, licensed for reuse, but requires considerable effort to reuse (on the web with an open license).

• Level 3 data is visible and easy to reuse by all (Not restricted to using specific software, non-proprietary formats).

• Level 4 data is visible, easy to use and described in a standard fashion (RDF standards)

• Level 5 data is visible, easy to use, described in a standard fashion and meaning is clarified by common definition (Linked Resource Description Framework – RDF).

Economic and business data and statistical information services; and population, social, and labour market data, and statistical information services categoryThese performance measures are intended to achieve statistical releases that are free of significant errors, and meet response and release dates, excluding census.

How we measure our successThe achievements below reflect our focus on ensuring Tier 1 and other key statistics are produced and released reliably. The achievement of these performance measures reflects our commitment to ensuring that customers can rely on the quality of our statistics and know that they will be delivered consistently when expected.


Table 2

Data and statistical information services – performance information

Assessment of performance by measure 2019/20 2019/20 target 2018/19 Variance to

target result

Multi-category appropriation – Economic and business data and statistical information services

Number of statistical releases: economic and business data and statistical information services1 164 140 140 24

+17%

Percentage of statistical releases that are free from significant errors 99.4% 99% 100% +0.4%

Percentage of statistical releases published on the advertised date as per the release calendar available on Statistics New Zealand website2

100% 100% 100% No variance

Multi-category appropriation – Population, social, labour market data, and statistical information services

Number of statistical releases: population, social, labour market data, and statistical information services2

69 70 69 -1 (-1.4%)

Percentage of statistical releases that are free from significant errors 100% 99% 100% +1%

Percentage of statistical releases published on the advertised date as per the release calendar available on Statistics New Zealand website3

100% 100% 100% No variance

1 The target of 140 economic releases was provisional at the time of the publication of the Estimates. A difference between budgeted and actual numbers is a common occurrence as new surveys are started while others are stopped each year.

2 The calendar of scheduled economic release dates is published on the Stats NZ website at least six months in advance, and the achievement of the planned release dates is monitored as a timeliness performance measure.

3 The calendar of scheduled population related release dates is published on the Stats NZ website at least six months in advance, and the achievement of the planned release dates is monitored as a timeliness performance measure.

Stewardship of government data and statistical activities category These performance measures are intended to achieve leadership of the New Zealand data ecosystem and facilitate awareness and use of statistical information.

How we measure our successSocial licence means that to manage the public’s data, they need to have trust in, and an understanding of, what we do. This is the third year Nielson conducted the survey on Stats NZ’s social licence for data stewardship. More than 2,000 people participated in the survey of which 86 percent expressed trust in Stats NZ and how we look after New Zealand’s data. The results remain similar to 2018/19.


In 2019/20, 735 customers accessed microdata, 10 fewer than in 2018/19, reflecting a natural reduction of users via expiry of projects and reduction in expected new projects. Approved and in-progress research project applications for the Data Lab was 93. This was on track to achieve target until COVID-19 impacted the number of the applications during quarter four.

In 2019/20 we introduced two new measures reflecting our role as the Data Steward within the government statistical system supporting the use of data as a resource across the government. We have engaged with 197 government agencies, non-government organisations, international organisations, and Pacific agencies, exceeding the target by 79. These engagements have led to 15,350 open datasets available to the public on data.govt.nz, exceeding the target by 8,350. GNS Science was the most significant contributor with 7,332 datasets.

There were 121 submissions to the Minister, including briefings, aide memoires, and memorandums. Of these, 116 were within the agreed timeframes with the Minister’s Office. We submitted 173 responses to Parliamentary Questions, of which 172 were within agreed timeframes with the Minister’s Office. In the 2019/20 year, all four responses to Ministerial Official Information Act requests were within agreed timeframes with the Minister’s Office.

Table 3

Stewardship of government data and statistical activities – performance information

Assessment of performance by measure 2019/20 2019/20 target 2018/19 Variance to target result

Multi-category appropriation – Stewardship of government data and statistical activities This category is intended to achieve leadership of the New Zealand data ecosystem and to facilitate awareness and use of statistical information.

Social licence: Stats NZ maintains the support of its stakeholders as a trusted steward of the New Zealand’s data and information1

86% 85% 85% +1%

Approved/in progress research project application for the Data Lab 93 125 New

measure -32

Number of users accessing microdata 735 900 745 -165

Open datasets released on data.govt.nz by government agencies 15,350 7000 New

measure +8,350

Number of organisations (government and non-government) Stats NZ engaged with to maximise the value of data

197 118 New measure +79

Percentage of responses to parliamentary questions submitted to the Minister within required timeframes 99% 95% or above 100% No variance

Percentage of briefings submitted to the Minister within agreed timeframes 96% 95% or above 99% No variance

Percentage of responses to departmental Official Information Act requests sent within statutory timeframes2

100% 95% or above 100% No variance

1 The annual Nielson Data Stewardship survey scheduled for April/May 2020 to enable comparative results to 2018/19 was delayed until 21 July–12 August 2020 due to COVID-19.

2 OIA requests to the Minister of Statistics of which Stats NZ provides information.


Services to other agencies and capital expenditure measures

AppropriationThe services to other agencies appropriation is intended to achieve the provision of shared services with other government agencies for the efficient and effective management of the Crown estate, such as the provision of shared accommodation in Christchurch.

The capital expenditure appropriation is intended to invest in the renewal, upgrade, and redesign of assets that support the delivery of Stats NZ’s services, including delivery of the 2018 Census.

How we measure our successThe non-financial performance measures reported in table 4 relate to the services to other agencies revenue-dependent appropriation, and the capital expenditure appropriation.

Table 4

Services to other agencies and capital expenditure – performance information

Appropriation / Assessment of performance by measure

2019/20 result

2019/20 target 2018/19 Variance to

target

Appropriation – services to other agencies revenue dependent Appropriation (RDA) (M67) This appropriation is limited to the provision of services by Stats NZ to other agencies, where those services are not within the scope of another departmental output expense appropriation in Vote Statistics.

Support the provision of shared services with other government agencies Achieved Achieved Achieved No variance

Appropriation – capital expenditure Permanent Legislative Authority (PLA) (M67) This appropriation is limited the purchase or development of assets by, and for the use of, Stats NZ, as authorised by section 24(1) of the Public Finance Act 1989.

Deliver infrastructure that supports our strategic vision and business Achieved Achieved Achieved No variance


Tauākī takohanga Statement of responsibilityFor the year ended 30 June 2020

I am responsible, as Chief Executive of Stats NZ, for:

• the preparation of Stats NZ’s financial statements, and statements of expenses and capital expenditure, and for the judgements expressed in them

• having in place a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting

• ensuring that end-of-year performance information on each appropriation administered by Stats NZ is provided in accordance with sections 19A to 19C of the Public Finance Act 1989, whether or not that information is included in this annual report; and

• the accuracy of any end-of-year performance information prepared by Stats NZ, whether or not that information is included in the annual report.

In my opinion:

• the financial statements fairly reflect the financial position of Stats NZ as at 30 June 2020 and its operation for the year ended on that date; and

• the forecast financial statements fairly reflect the forecast financial position of Stats NZ as at 30 June 2020 and its operations for the year ending on that date.

Mark Sowden

Chief Executive and Government Statistician 30 November 2020


Te Pūrongo a te Kaiarotake Tū Motuhake Independent auditor’s report

To the readers of Statistics New Zealand’s annual report for the year ended 30 June 2020

The Auditor-General is the auditor of Statistics New Zealand (the Department). The Auditor-General has appointed me, Ajay Sharma, using the staff and resources of Audit New Zealand, to carry out, on his behalf, the audit of:

• the financial statements of the Department on pages 52 to 81, that comprise the statement of financial position, statement of commitments, statement of contingent liabilities and contingent assets as at 30 June 2020, the statement of comprehensive revenue and expense, statement of changes in equity, and statement of cash flows for the year ended on that date and the notes to the financial statements that include accounting policies and other explanatory information;

• the performance information prepared by the Department for the year ended 30 June 2020 on pages 19 to 37 and 39 to 44 and 84 to 87; and

• the statements of expenses and capital expenditure of the Department for the year ended 30 June 2020 on pages 82 to 84; and

OpinionIn our opinion:

• The financial statements of the Department on pages 52 to 81:

» present fairly, in all material respects:

– its financial position as at 30 June 2020; and

– its financial performance and cash flows for the year ended on that date; and

» comply with generally accepted accounting practice in New Zealand in accordance with the Public Benefit Entity Reporting Standards.

• The performance information of the Department on pages 19 to 37 and 39 to 44 and 84 to 87:

» presents fairly, in all material respects, for the year ended 30 June 2020:

– what has been achieved with the appropriation; and

– the actual expenses or capital expenditure incurred compared with the appropriated or forecast expenses or capital expenditure; and

» complies with generally accepted accounting practice in New Zealand.

• The statements of expenses and capital expenditure of the Department on pages 82 to 84 are presented fairly, in all material respects, in accordance with the requirements of section 45A of the Public Finance Act 1989.

Our audit was completed on 30 November 2020. This is the date at which our opinion is expressed.


The basis for our opinion is explained below, and we draw attention to the impact of COVID-19 on the Department. In addition, we outline the responsibilities of the Government Statistician and our responsibilities relating to the information to be audited, we comment on other information, and we explain our independence.

Emphasis of matter – Impact of COVID-19Without modifying our opinion, we draw attention to the disclosures about the impact of COVID-19 on the Department as set out in note 20 to the financial statements and pages 39 to 43 of the performance information.

Basis for our opinionWe carried out our audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the Professional and Ethical Standards and the International Standards on Auditing (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board. Our responsibilities under those standards are further described in the Responsibilities of the auditor section of our report.

We have fulfilled our responsibilities in accordance with the Auditor-General’s Auditing Standards.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of the Government Statistician for the information to be auditedThe Government Statistician is responsible on behalf of the Department for preparing:

• financial statements that present fairly the Department’s financial position, financial performance, and its cash flows, and that comply with generally accepted accounting practice in New Zealand;

• performance information that presents fairly what has been achieved with each appropriation, the expenditure incurred as compared with expenditure expected to be incurred, and that complies with generally accepted accounting practice in New Zealand; and

• statements of expenses and capital expenditure of the Department, that are presented fairly, in accordance with the requirements of the Public Finance Act 1989.

The Government Statistician is responsible for such internal control as is determined is necessary to enable the preparation of the information to be audited that is free from material misstatement, whether due to fraud or error.

In preparing the information to be audited, the Government Statistician is responsible on behalf of the Department for assessing the Department’s ability to continue as a going concern. The Government Statistician is also responsible for disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless there is an intention to merge or to terminate the activities of the Department, or there is no realistic alternative but to do so.

The Government Statistician’s responsibilities arise from the Public Finance Act 1989.


Responsibilities of the auditor for the information to be auditedOur objectives are to obtain reasonable assurance about whether the information we audited, as a whole, is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit carried out in accordance with the Auditor-General’s Auditing Standards will always detect a material misstatement when it exists. Misstatements are differences or omissions of amounts or disclosures, and can arise from fraud or error. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of readers, taken on the basis of the information we audited.

For the budget information reported in the information we audited, our procedures were limited to checking that the information agreed to the Department’s information on strategic intentions 2019-2023, Estimates and Supplementary Estimates of Appropriations 2019/20 and the 2019/20 forecast financial figures included in the Department’s 2018/19 Annual Report.

We did not evaluate the security and controls over the electronic publication of the information we audited.

As part of an audit in accordance with the Auditor-General’s Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. Also:

• We identify and assess the risks of material misstatement of the information we audited, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Department’s internal control.

• We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Government Statistician.

• We evaluate the appropriateness of the reported performance information within the Department’s framework for reporting its performance.

• We conclude on the appropriateness of the use of the going concern basis of accounting by the Government Statistician and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Department’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the information we audited or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Department to cease to continue as a going concern.

• We evaluate the overall presentation, structure and content of the information we audited, including the disclosures, and whether the information we audited represents the underlying transactions and events in a manner that achieves fair presentation.


We communicate with the Government Statistician regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Our responsibilities arise from the Public Audit Act 2001.

Other informationThe Government Statistician is responsible for the other information. The other information comprises the information included on pages 3 to 87, but does not include the information we audited, and our auditor’s report thereon.

Our opinion on the information we audited does not cover the other information and we do not express any form of audit opinion or assurance conclusion thereon.

Our responsibility is to read the other information. In doing so, we consider whether the other information is materially inconsistent with the information we audited or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on our work, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

IndependenceWe are independent of the Department in accordance with the independence requirements of the Auditor-General’s Auditing Standards, which incorporate the independence requirements of Professional and Ethical Standard 1: International Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board.

Other than in our capacity as auditor, we have no relationship with, or interests, in the Department.

Ajay Sharma

Audit New ZealandOn behalf of the Auditor-GeneralWellington, New Zealand


STATS NZ’S ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2018 51STATS NZ’S ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2020

Ngā tauākī pūteaFinancial statements

STATS NZ’S ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 201852 STATS NZ’S ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2020

Ngā tauākī pūtea Financial statements

This section reports on the financial performance of Stats NZ for the year ended 30 June 2020.

• Statement of comprehensive revenue and expense

• Statement of financial position

• Statement of changes in equity

• Statement of cash flows

• Statement of commitments

• Statement of contingent liabilities and contingent assets

• Notes to the financial statements

• Appropriation statements.

Statement of comprehensive revenue and expenseFor the year ended 30 June 2020

2019 2020 2020 2021Actual Actual Unaudited Unaudited

budget forecast$000 Note $000 $000 $000

Revenue

139,060 Revenue Crown [2] 145,646 146,721 176,118

38,423 Other revenue [2] 10,752 11,664 10,805

177,483 Total revenue 156,398 158,385 186,923

Expenses

94,359 Personnel [3] 97,277 96,485 118,554

43,087 Operating [4] 42,527 46,617 51,584

13,284 Depreciation and amortisation [12-13] 6,556 10,772 12,320

3,077 Capital charge [5] 4,465 4,511 4,465

962 Loss on disposal of non-current assets [14] 11 - -

154,769 Total expenses 150,836 158,385 186,923

22,714 Net surplus/(deficit) and total comprehensive revenue and expense 5,562 - -

Explanation of significant variances against the original budget 2019/20 are detailed in Note 19.

The accompanying accounting policies and notes form part of these financial statements.


Statement of financial positionAs at 30 June 2020



AssetsCurrent assets

31,510 Cash and cash equivalents [18] 28,100 39,691 28,594

46,047 Debtor Crown 60,792 32,628 46,047

753 Debtors and other receivables [6], [18] 681 999 1,148

2,650 Advances and prepayments 3,349 2,814 3,050

80,960 Total current assets 92,922 76,132 78,839

Non-current assets

8,084 Property, plant, and equipment [12] 7,335 13,621 17,834

10,275 Intangible assets [13] 11,420 9,271 10,113

18,359 Total non-current assets 18,755 22,892 27,947

99,319 Total assets 111,677 99,024 106,786

LiabilitiesCurrent liabilities

7,141 Creditors and other payables [7], [18] 6,292 7,349 9,291

181 Repayment of surplus to the Crown [8] 5,562 - -

571 Provisions [9] 4,182 - -

7,927 Employee entitlements [10] 9,237 6,388 7,969

768 Goods and services tax payable 3,042 893 968

1,083 Deferred revenue [11] 1,284 - -

17,671 Total current liabilities 29,599 14,630 18,228

Non-current liabilities

7,230 Employee entitlements [10] 7,660 5,162 7,093

7,230 Total non-current liabilities 7,660 5,162 7,093

24,901 Total liabilities 37,259 19,792 25,321

74,418 Net assets 74,418 79,232 81,465

Equity

74,418 Taxpayers’ funds 74,418 79,232 81,465

74,418 Total equity [15] 74,418 79,232 81,465




Statement of changes in equityFor the year ended 30 June 2020



50,684 Equity as at 1 July 74,418 75,185 74,418

22,714 Total comprehensive revenue and expense 5,562 - -

Owner transactions:

1,201 Retention of surplus 2017/18 - - -

11,580 Capital injections - 4,047 7,047

(11,580) Capital withdrawals - - -

(181) Return of operating surplus to the Crown (5,562) - -

74,418 Equity as at 30 June [15] 74,418 79,232 81,465




Statement of cash flowsFor the year ended 30 June 2020



Cash flows from operating activities

127,391 Receipts from Revenue Crown 132,824 146,721 176,118

39,893 Receipts from other revenue 11,025 11,664 10,805

(137,547) Payments to suppliers and employees (135,584) (144,204) (169,879)

(1,702) Goods and services tax (net) 344 100 100

(3,077) Payments for capital charge (4,465) (4,511) (4,465)

24,958 Net cash flow from operating activities 4,144 9,770 12,679

Cash flows from investing activities

7 Receipts from sale of property, plant, and equipment - - -

(1,158) Purchase of property, plant, and equipment (1,954) (5,000) (12,600)

(4,111) Purchase of intangible assets (5,419) (3,000) (10,247)

(5,262) Net cash flow from investing activities (7,373) (8,000) (22,847)

Cash flows from financing activities

- Capital contribution - 4,047 7,047

- Payment of operating surplus to the Crown (181) - -

- Net cash flow from financing activities (181) 4,047 7,047

- -

19,696 Net increase/(decrease) in cash and cash equivalents (3,410) 5,817 (3,121)

11,814 Cash and cash equivalents as at 1 July 31,510 33,874 31,715

31,510 Cash and cash equivalents as at 30 June 28,100 39,691 28,594




Statement of cash flowsFor the year ended 30 June 2020

Reconciliation of net surplus/(deficit) to net cash from operating activities

2019 2020

Actual Actual

$000 $000

22,714 Net surplus / (deficit) 5,562

Non-cash items

13,284 Depreciation and amortisation 6,556

1,094 Movements in non-current employee entitlements 430

14,378 Total non-cash items 6,986

Items classified as investing or financing activities

6 (Gain)/loss on derecognition of work in progress 393

962 (Gain)/loss on disposal of non-financial assets 11

968 Total items classified as investing or financing activities 404

Working capital movements

(13,419) (Increase)/decrease in debtor Crown (14,745)

387 (Increase)/decrease in debtors and other receivables 72

(236) (Increase)/decrease in advances and prepayments (699)

(1,869) Increase/(decrease) in creditors and other payables (832)

48 Increase/(decrease) in goods and services tax payable 2,274

571 Increase/(decrease) in current provisions 3,611

333 Increase/(decrease) in employee entitlements 1,310

- Increase/(decrease) in realised derivative financial instruments -

1,083 Increase/(decrease) in deferred revenue 201

(13,102) Net working capital movements (8,808)

24,958 Net cash flows from operating activities 4,144




Statement of commitmentsAs at 30 June 2020

Capital commitmentsCapital commitments are the aggregate amount of capital expenditure contracted for the acquisition of property, plant, and equipment and intangible assets that have not been paid for or not recognised as a liability at balance date.

2019 2020Actual Actual

$000 $000

Non-cancellable capital commitments

- Not later than one year 8,253

- Later than one year and not later than five years 6,527

- Later than five years -

- Total non-cancellable capital commitments 14,780

Capital commitments are for the completion of capital work at 8 Willis Street. The target date for the completion of these works is January 2022.

Non-cancellable operating lease commitmentsStats NZ leases property, plant, and equipment in the normal course of its business. The majority of these leases are for premises which have a non-cancellable leasing period ranging from three to fifteen years.

Stats NZ’s non-cancellable operating leases have varying terms, escalation clauses, and renewal rights. No restrictions are placed on Stats NZ by any of its leasing arrangements.


$000 $000

Non-cancellable operating lease commitments

5,832 Not later than one year 7,087

36,226 Later than one year and not later than five years 38,971

106,689 Later than five years 96,764

148,747 Total non-cancellable operating lease commitments 142,822

The majority of the operating lease commitments are due to the lease signed for office accommodation for 8 Willis Street, Wellington. The target lease commencement date is early 2022 with an interim term of fifteen years.



Statement of contingent liabilities and contingent assetsAs at 30 June 2020

Unquantifiable contingent liabilitiesThe Department has no known unquantifiable contingent liabilities as at 30 June 2020 (2019: Nil).

Quantifiable contingent liabilities


$000 $000

54 Other 1,260

54 Total quantifiable contingent liabilities 1,260

Quantifiable contingent assets


$000 $000

1,500 Insurance claim -

1,500 Total quantifiable contingent assets -



Ngā tuhipoka mō ngā tauākī pūtea Notes to the financial statements1. Statement of accounting policies for the year ended 30 June 2020

Reporting entityStatistics New Zealand (abbreviated to Stats NZ) is a government department as defined by section 2 of the Public Finance Act 1989 (PFA) and is domiciled and operates in New Zealand. The relevant legislation governing Stats NZ’s operations include the PFA and the Statistics Act 1975. It is a wholly-owned entity of the Crown whose primary objective is to provide services to the public rather than to make a financial return. Accordingly, Stats NZ has designated itself as a public benefit entity (PBE) for financial reporting purposes.

The financial statements of Stats NZ are for the year ended 30 June 2020 and were approved for issue by the Government Statistician on 30 November 2020.

Basis of preparationThe financial statements have been prepared on a going-concern basis, and the accounting policies have been applied consistently throughout the year.

Statement of complianceThese financial statements have been prepared in accordance with the requirements of the Public Finance Act 1989, which include the requirement to comply with New Zealand Generally Accepted Accounting Practice (NZ GAAP) and Treasury Instructions.

These financial statements have been prepared in accordance with and comply with Public Sector PBE Accounting Standards.

Presentation currency and roundingThe financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000) unless otherwise stated.

Changes in accounting policiesThere have been no changes in accounting policies since the date of the last audited financial statements.

Standards issued and not yet effective and not early adoptedStandards and amendments, issued but not yet effective that have not been early adopted, and which are relevant to Stats NZ are:

Amendment to PBE IPSAS 2 Statement of Cash Flows

An amendment to PBE IPSAS 2 Statement of Cash Flows requires entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes. This amendment is effective for annual periods beginning on or after 1 January 2021, with early application permitted. Stats NZ does not intend to early adopt the amendment.

PBE IPSAS 41 Financial Instruments

The XRB issued PBE IPSAS 41 Financial Instruments in March 2019. This standard supersedes PBE IFRS 9 Financial Instruments, which was issued as an interim standard. It is effective for reporting periods beginning on or after 1 January 2022. Although Stats NZ has not assessed the effect of the new standard, it does not expect any significant changes as the requirements are similar to PBE IFRS 9.

PBE FRS 48 Service Performance Reporting

PBE FRS 48 replaces the service performance reporting requirements of PBE IPSAS 1 and is effective for reporting periods beginning on or after 1 January 2021. Stats NZ has not yet determined how application of PBE FRS 48 will affect its statement of performance.


Summary of significant accounting policiesSignificant accounting policies are included in the notes to which they relate. Significant accounting policies that do not relate to a specific note are outlined below.

Foreign currency translationForeign currency transactions (including those for which forward foreign-exchange contracts are held) are translated into NZ$ (the functional currency) using the spot exchange rates at the dates of the transactions.

Foreign exchange gains and losses resulting from the settlement of such transactions, and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies, are recognised in the surplus or deficit.

Cash and cash equivalentsCash and cash equivalents include cash on hand, and funds on deposit with banks with a maturity period of 90 days or less and are measured at carrying value.

Stats NZ is only permitted to expend its cash and cash equivalents within the scope and limits of its appropriations.

Goods and services tax (GST)All items in the financial statements, including appropriation statements, are stated exclusive of GST except for receivables and payables, which are stated on a GST-inclusive basis. Where GST is not recoverable as input tax, then it is recognised as part of the related asset or expense. The net amount of GST recoverable from, or payable to, Inland Revenue is included as part of receivables or payables in the statement of financial position.

The net GST paid to, or received from, Inland Revenue, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows.

Income taxStats NZ is a government department and consequently is exempt from income tax. Accordingly, no provision has been made for income tax.

Statement of cost accounting policiesStats NZ has determined the cost of outputs by using the cost allocation system outlined below.

Direct costs are those costs directly attributed to an output. Indirect costs are those costs that cannot be identified with a specific output in an economically feasible manner.

Direct costs are charged directly to outputs. Indirect costs are charged to outputs based on cost drivers and related activity. Personnel costs are either charged on the basis of actual time incurred using a time recording system or assigned with other indirect costs to outputs based on the proportion of direct expenditure.

There have been no material changes to the costs allocation methodology since the date of the last audited financial statements.

Critical accounting estimates and assumptionsIn preparing these financial statements, Stats NZ has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are disclosed in Note 13 (assessing the useful lives of software) and Note 10 (measuring long service and retirement leave).


Budget and forecast figures

Basis of the budget and forecast figures

The 2020 budget figures are for the year ended 30 June 2020 and were published in the 2018/19 annual report. They are consistent with Stats NZ’s best estimate financial forecast information submitted to Treasury for the Budget Economic and Fiscal Update (BEFU) for the year ending 2019/20.

The 2021 forecast figures are for the year ended 30 June 2021, which are consistent with the best estimate financial forecast information submitted to Treasury for the BEFU for the year ending 2020/21.

The forecast financial statements were prepared as required by the Public Finance Act 1989 to communicate forecast financial information for accountability purposes. The forecast financial statements may not be appropriate for other purposes.

The budget and forecast figures are unaudited and were prepared using the accounting policies adopted in preparing these financial statements.

The 30 June 2021 forecast figures were prepared in accordance with PBE FRS 42 Prospective Financial Statements.

The forecast financial statements were approved for issue by the Government Statistician in April 2020. The Government Statistician is responsible for the forecast financial statements, including the appropriateness of the assumptions underlying them and all other required disclosures. While Stats NZ regularly updates its forecasts, updated forecast financial statements for the year ended 30 June 2021 will not be published.

Significant assumptions used in preparing the forecast financials

In preparing the forecast figures, estimates and assumptions were made about the future – based on the best information available to Stats NZ. These estimates and assumptions may differ from the subsequent actual results. The main assumptions are as follows:

• The forecasts were compiled on the basis of existing government policies and Ministerial expectations. The 2020/21 actual financial statements may include changes to the baseline budget through new initiatives or technical adjustments. Any such changes will affect Revenue from the Crown and Output Expenditure.

• Forecast sales to customers (‘Other revenue’ in the Statement of comprehensive revenue and expense) is based on the best available estimates but the actual financial result for 2020/21 is subject to demand fluctuations.

• The forecast personnel assumptions are based on the current salary costs, adjusted for any anticipated remuneration increases for the forecast year.

• Forecast expenditure is based on the assumption that Stats NZ will continue to realise efficiency and effectiveness savings in 2020/21. Stats NZ is focused on improved oversight of expenditure through enhanced planning, budgeting, and prioritisation processes.


2. RevenueRevenue is measured at the fair value of the consideration received, or receivable, as follows.

Revenue Crown

The fair value of revenue from the Crown is measured based on Stats NZ’s funding entitlement for the accounting period. The funding entitlement is established by Parliament when it passes the Appropriation Acts for the financial year. The amount of revenue recognised takes into account any amendments to appropriations approved in the Appropriation (Supplementary Estimates) Act for the year, and certain other unconditional funding adjustments formally approved before the balance date.

There are no conditions attached to the funding from the Crown. However, Stats NZ can incur expenses only within the scope and limits of its appropriations. The fair value of Revenue Crown has been determined to be equivalent to the funding entitlement.

Other revenue

The sale of customised data/subscriptions is recognised when the product is sold to the customer. The recorded revenue is the gross amount of the sale. Revenue from contract surveys is recognised to the extent that the service has been completed by Stats NZ. Office rental revenue under an operating sub-lease is recognised on a straight-line basis over the lease term. Other sources of income are recognised when earned and are reported in the financial periods to which they relate.

The breakdown of other revenue is:


$000 $000

29,299 Insurance revenue (1) 1,508

4,540 Contract surveys 4,595

1,626 Office rental income 1,208

1,174 Recoveries revenue 948

996 Customised data/subscriptions 1,290

788 Other 1,203

38,423 Total other revenue 10,752

1. The insurance revenue of $1.508 million (2019: $29.299 million) relates to a final insurance settlement for the contract works insurance claim received in 2019/20 and the final settlement for the material insurance and business continuity claim in 2018/19, both arising from the 2016 Kaikōura earthquake.


3. Personnel

Salaries and wages

Salaries and wages are recognised as an expense as employees provide services.

Superannuation schemes

Obligations for contributions to the State Sector Retirement Savings Scheme, KiwiSaver, and the Government Superannuation Fund are accounted for as defined contribution schemes and are expensed in the surplus or deficit as incurred.


$000 $000

86,683 Salaries and wages 88,243

2,603 Employer contributions to defined contribution plans 2,745

1,569 Increase/(decrease) in employee entitlements 1,933

3,504 Other 4,356

94,359 Total personnel 97,277


4. Operating

Operating expenses

Operating expenses are recognised in the period to which they relate.

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 lease term.


$000 $000

11,174 IT outsourced services 9,811

6,908 Operating lease and other rentals 5,948

6,284 Software licences and maintenance 6,840

3,516 Consultancy 2,587

3,073 Telecommunications 3,378

2,487 Contracted and professional services 1,423

1,909 Domestic and Australia travel 1,653

1,399 Interviewer travel 1,076

986 Building services 1,085

758 Printing and photocopying 501

640 Postage, courier, and freight 662

595 Corporate training 211

550 Facilities – repairs and maintenance 224

277 Publicity and advertising 186

106 IT hardware – repairs and maintenance 118

102 Minor IT purchases 198

101 Fees to Audit NZ for audit of the financial statements 102

2,222 Other operating expenses 6,524

43,087 Total operating 42,527


5. Capital chargeThe capital charge is recognised as an expense in the financial year to which the charge relates. Capital charge for 2019/20 was $4,465,080 (2019: $3,077,070).

Stats NZ pays a capital charge to the Crown based on equity at 30 June and 31 December each year. The capital charge rate for the year ended 30 June 2020 was 6 percent (2019: 6 percent).

6. Debtors and other receivablesShort-term receivables are recorded at the amount due, less an allowance for credit losses. Stats NZ applies the simplified expected credit loss model of recognising lifetime expected credit losses for receivables.

In measuring expected credit losses, short-term receivables have been assessed on a collective basis as they possess shared credit risk characteristics. They have been grouped based on the days past due.

Short-term receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include the debtor being in liquidation.


$000 $000

758 Debtors and other receivables (gross) 686

(5) Less: Allowance for credit losses (5)

753 Debtors and other receivables (net) 681

Debtors and other receivables comprise:

753 Debtors and other receivables (exchange transactions) 681

The expected credit loss rates for receivables at 30 June 2020 and 30 June 2019 are based on the payment profile of revenue on credit at the measurement date and the corresponding historical credit losses experienced for that period. The historical loss rates are adjusted for current and forward-looking macroeconomic factors that might affect the recoverability of receivables. Given the short period of credit risk exposure, the impact of macroeconomic factors is not considered significant.

There have been no changes during the reporting in the estimation techniques or significant assumptions used in measuring the loss allowance.


The allowance for credit losses at 30 June 2020 and 30 June 2019 are determined as follows:

30 June 2020 Receivables days past dueCurrent More than More than More than Total

30 days 60 days 90 days

Expected credit loss rate 0.5% 0.8% 1.0% 3.0%

Gross carrying amount ($000) 602 6 5 73 686

Lifetime expected credit loss ($000) 3 - - 2 5

30 June 2019 Receivables days past dueCurrent More than More than More than Total

30 days 60 days 90 days

Expected credit loss rate 0.6% 60.0% 0.3% 0.0%

Gross carrying amount ($000) 465 2 292 - 758

Lifetime expected credit loss ($000) 3 1 1 - 5

The movement in the allowance for credit losses is as follows:


$000 $000

5 Opening allowance for credit losses as at 1 July 5

- Increase in loss allowance made during the year -

5 Balance at 30 June 5


7. Creditors and other payablesShort-term creditors and other payables are recorded at the amount payable.


$000 $000

1,641 Creditors (exchange transactions) 1,035

5,500 Accrued expenses and other payables (exchange transactions) 5,257

7,141 Total creditors and other payables 6,292

Creditors and other payables are normally settled on 30-day terms so the carrying value of creditors and other payables approximates their fair value.

8. Return of operating surplus to the CrownUnder Section 22 of the Public Finance Act 1989: except as agreed between the Minister and the responsible Minister for a department, the department must not retain any operating surplus that results from its activities. Under this section, the return of surplus to the Crown is required to be paid by 31 October each year.

Parliament passed legislation on 5 August 2020 as a result of COVID-19 pandemic. Section 19BA “Extension of time limits for 2019/20 financial year information: COVID-19” extends the statutory reporting timeframes by up to two months, for certain organisations. This extension applies to Stats NZ statutory reporting requirements for the 2019/20 financial year.

The provision of $5.562 million is the total net surplus for the 2019/20 financial year, to be returned to the Crown in December 2020 (2019: $0.181 million).


$000 $000

22,714 Net surplus/(deficit) 5,562

(22,533) Retention of surplus -

181 Net repayment of surplus to the Crown 5,562


9. ProvisionsStats NZ recognises a provision for future expenditure of uncertain amount or timing when (a) there is a present obligation (either legal or constructive) as a result of a past event and (b) it is probable that expenditure will be required to settle the obligation, and (c) a reliable estimate can be made of the amount of the obligation. Provisions are not recognised for future operating losses.

Provisions are recorded at the best estimate of the expenditures expected to be required to settle the obligation, using a discount rate based on market yields on government bonds at balance date with terms to maturity that match, as closely as possible, the estimated timing of the future cash outflows. The increase in the provision due to the passage of time is recognised as a finance cost.

Total $000

2019

Opening balance at 1 July 2018 -

Additional provisions recognised 571

Amounts used -

Unused amounts reversed -

Closing balance at 30 June 2019 571

Analysed as:

Current 571

Non-current -

2020

Opening balance at 1 July 2019 571

Additional provisions recognised 4,182

Amounts used (571)

Unused amounts reversed -

Closing balance at 30 June 2020 4,182

Analysed as:

Current 4,182

Non-current -


10. Employee entitlements

Short-term employee entitlements

Employee entitlements that Stats NZ expects to be settled within 12 months of balance date are measured at nominal values, based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned but not yet taken at balance date, retiring and long-service leave entitlements expected to be settled within 12 months, and sick leave.

Stats NZ recognises a liability for sick leave 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 Stats NZ anticipates it will be used by staff to cover those future absences.

Stats NZ recognises a liability and an expense for bonuses where it is contractually obliged to pay them, or where there is a past practice that has created a constructive obligation.

Long-term employee entitlements

Employee entitlements that are due to be settled beyond 12 months, such as long-service leave and retiring leave, have been calculated on an actuarial basis. The calculations are based on:

• likely future entitlements based on years of service, years to entitlement, the likelihood that staff will reach the point of entitlement, and contractual entitlements information; and

• the present value of the estimated future cash flows using the three risk-free discount rates and a salary inflation factor.


$000 $000

Current employee entitlements

5,286 Annual leave 6,482

565 Sick leave 565

2,076 Retirement and long-service leave 2,190

7,927 Total current portion 9,237

Non-current employee entitlements

7,230 Retirement and long-service leave 7,660

7,230 Total non-current portion 7,660

15,157 Total employee entitlements 16,897


The present value of the retirement and long-service leave obligations depends on several factors that are determined on an actuarial basis using a number of assumptions. Two key assumptions used in calculating this liability include the risk-free discount rates and the salary inflation factor. Any changes in these assumptions will affect the carrying amount of the liability.

Stats NZ has used the actuarial models provided by the Treasury, including the applicable risk-free discount rates and salary inflation factor. Risk-free discount rates of 0.22 percent in year 1 (2019: 1.23 percent), 0.25 percent in year 2 (2019: 1.03 percent), and 1.63 percent in year 3 onwards (2019: 2.23 percent), and a salary inflation factor of 2.72 percent (2019: 2.92 percent) were used.

The risk-free discount rate used for year 3 onwards is based on the average of 20 forward rates (from year 3 to 22 inclusive) taken from the published table of discount rates as at 30 June 2020. The salary inflation factor is based on using a 1.52 percent medium-term inflation assumption plus 1.2 percent for long-term labour-productivity growth for the public sector. On average over the longer term it is expected that nominal wages and salaries would grow approximately in line with inflation and the rate of labour-productivity growth.

If the risk-free discount rates were to differ by 1 percent from Stats NZ’s estimates, with all other factors held constant, the carrying amount of the liability would be an estimated $672,712 lower (1 percent increase) or $786,072 higher (1 percent decrease).

If the salary inflation factor was to differ by 1 percent from Stats NZ’s estimates, with all other factors held constant, the carrying amount of the liability would be an estimated $774,298 higher (1 percent increase) or $676,727 lower (1 percent decrease).

11. Deferred revenueDeferred revenue under exchange transactions of $1.284 million (2019: $1.083 million) is income in advance that relates to a subsequent financial year. It is recognised as income when the services are provided or performed.

12. Property, plant, and equipmentProperty, plant, and equipment consists of computer equipment, leasehold improvements, furniture and fixtures, and office equipment.

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 Stats NZ and the cost of the item can be measured reliably. Work in progress is recognised at cost less impairment and is not depreciated.

Individual assets, or group of assets, are capitalised if their cost is greater than $1,500. The value of an individual asset that is less than $1,500 and is part of a group of similar assets is capitalised.


Subsequent costs

Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to Stats NZ, 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 of the assets to their estimated residual values over their useful lives. In determining an asset’s useful life, consideration is given to its expected usage, its expected wear and tear, technical obsolescence, and legal or similar limits on its use.

The useful lives and associated depreciation rates of major classes of assets were estimated as follows:

Furniture and office equipment 5 to 7 years

Computer equipment 3 to 5 years

Leasehold improvements remaining term of the lease or the estimated remaining useful lives of the improvements, but not to exceed 12 years – whichever is the shorter.

The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year end.

Disposals

Gains and losses are determined by comparing the carrying amount of the asset with the disposal proceeds received (if any). Realised gains and losses are recognised in the surplus or deficit.

Impairment

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

Property, plant, and equipment is tested 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 the present value of the asset’s remaining service potential. Value in use is determined as being the depreciated replacement cost or the restoration cost, depending on the nature of the impairment and the availability of information.

If an asset’s carrying amount exceeds its recoverable service amount, the asset is impaired and the carrying amount is written down to the recoverable service amount. The impairment loss is recognised in the surplus or deficit. The reversal of an impairment loss is also recognised in the surplus or deficit.


Furniture and Leasehold Office Computer Total fixtures improvements equipment hardware

$000 $000 $000 $000 $000

2019

Cost

Balance at 1 July 2018 3,560 9,154 252 9,816 22,782

Additions 458 - - 206 664

Disposals (61) (1,564) (80) (3,136) (4,841)

Work in progress movement 2 468 - 23 493

Balance at 30 June 2019 3,959 8,058 172 6,909 19,098

Accumulated depreciation and impairment losses

Balance at 1 July 2018 1,328 2,602 202 6,899 11,031

Depreciation expense 798 1,327 26 1,924 4,075

Eliminate on disposal (61) (852) (79) (3,100) (4,092)

Balance at 30 June 2019 2,065 3,077 149 5,723 11,014

Carrying amount as at 30 June 2019 1,894 4,981 23 1,186 8,084

2020

Cost

Balance at 1 July 2019 3,959 8,058 172 6,909 19,098

Additions 22 396 5 494 917

Disposals (13) (7) (21) (685) (726)

Work in progress movement (2) 1,061 - (45) 1,014

Balance at 30 June 2020 3,966 9,508 156 6,673 20,303

Accumulated depreciation and impairment losses

Balance at 1 July 2019 2,064 3,077 149 5,723 11,013

Depreciation expense 800 864 16 990 2,670

Eliminate on disposal (9) (7) (21) (678) (715)

Balance at 30 June 2020 2,855 3,934 144 6,035 12,968

Carrying amount as at 30 June 2020 1,111 5,574 12 638 7,335


Carrying amounts at year-end are stated at cost less accumulated depreciation and include work in progress relating to leasehold improvements of $1,529,000 (2019: $468,000), furniture and fixtures of $Nil (2019: $2,000) and computer hardware of $Nil (2019: $23,000).

There are no restrictions over the title of Stats NZ’s property, plant, and equipment. No items of property, plant, and equipment are pledged as security for liabilities.

13. Intangible assetsStats NZ has intangible assets in the form of software and internally generated assets.

Software acquisition and development

Acquired computer software licences are capitalised on the basis of 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 by Stats NZ are recognised as an intangible asset. Costs that are directly associated include software development, labour, and directly applicable operating costs. Costs associated with maintaining computer software 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 that the asset is derecognised. The amortisation charge for each period is recognised in the surplus or deficit. The useful lives and associated amortisation rates of major classes of intangible assets have been estimated as follows:

Software – acquired and developed 3 to 8 years

Critical accounting estimates and assumptions

The useful lives of intangible assets are based on management’s view of the expected period over which Stats NZ will receive benefits, historical experience with similar systems, and anticipation of future events that may affect useful lives, such as changes in technology.

Impairment

Intangible assets 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. Intangible assets are also reviewed annually for indicators of impairment at each balance date. Assets under construction are tested for impairment at each balance date. For further details refer to the policy for impairment of property, plant and equipment in Note 12. The same approach applies to the impairment of intangible assets.


Software Internally generated

software

Total

$000 $000 $000

2019

Cost

Balance at 1 July 2018 5,992 67,564 73,556

Additions - 3,342 3,342

Disposals (2,606) (5,789) (8,395)

Work in progress movement - 762 762

Balance at 30 June 2019 3,386 65,879 69,265

Accumulated amortisation and impairment losses

Balance at 1 July 2018 4,684 53,272 57,956

Depreciation expense 279 8,930 9,209

Eliminate on disposal (2,394) (5,781) (8,175)

Balance at 30 June 2019 2,569 56,421 58,990

Carrying amount as at 30 June 2019 817 9,458 10,275

2020

Cost

Balance at 1 July 2019 3,386 65,879 69,265

Additions - 1,111 1,111

Disposals (476) (1,543) (2,019)

Work in progress movement - 3,921 3,921

Balance at 30 June 2020 2,910 69,368 72,278

Accumulated amortisation and impairment losses

Balance at 1 July 2019 2,569 56,422 58,991

Depreciation expense 169 3,717 3,886

Eliminate on disposal (476) (1,543) (2,019)

Balance at 30 June 2020 2,262 58,596 60,858

Carrying amount as at 30 June 2020 648 10,772 11,420

Carrying amounts at year-end are stated at cost less accumulated amortisation and include work in progress relating to internally generated assets of $6,143,000 (2019: $2,222,000).

There are no restrictions over the title of Stats NZ’s intangible assets. No intangible assets are pledged as security for liabilities.


14. Loss / (gain) on disposal of non-current assetsDuring the period there was a loss on the sale and disposal of property, plant, and equipment, and intangible assets of $11,000 (2019: Loss of $962,000).

15. EquityEquity is the Crown’s investment in Stats NZ and is measured as the difference between total assets and total liabilities.

The provision for the balance of $5.562 million, the net surplus for the 2019/20 financial year, is to be returned to the Crown (2019: $0.181 million).

Capital managementStats NZ capital is its equity. Stats NZ manages its revenues, expenses, assets, liabilities, and general financial dealings prudently. Stats NZ’s equity is largely managed as a by-product of managing income, expenses, assets, liabilities, and compliance with the Government budget processes, Treasury instructions, and the Public Finance Act 1989.

The objective of managing Stats NZ’s equity is to ensure that Stats NZ effectively achieves its strategic direction, while remaining a going concern.

16. Related-party transactions and key management personnel

Related-party transactionsStats NZ is a wholly-owned entity of the Crown.

Related-party disclosures have not been made for transactions with related parties that are within a normal supplier or client/recipient relationship on terms and conditions no more or less favourable than those that it is reasonable to expect Stats NZ would have adopted in dealing with the party at arm’s length in the same circumstances. Further, transactions with other government departments and Crown entities are not disclosed as related-party transactions when they are consistent with the normal operating arrangements between government agencies and undertaken on the normal terms and conditions for such transactions.

There were no related-party transactions that were not within a normal arm’s length supplier or client / recipient relationship disclosed in 2020 (2019: $Nil).


Key management personnel compensation


Executive leadership team(1)

2,003 Remuneration ($000) 2,465

6.5 Full-time equivalent members 7.7

1 Executive leadership team includes the Government Statistician.

The above key management personnel disclosure excludes the Minister of Statistics. The Minister’s remuneration and other benefits are not received only for his role as a member of key management personnel of Stats NZ. The Minister’s remuneration and other benefits are set by the Remuneration Authority under the Members of Parliament (Remuneration and Services) Act 2013 and are paid under Permanent Legislative Authority, and not paid by Stats NZ.

17. Events after the balance sheet dateThere were no subsequent significant events occurring after balance date.

18. Financial instrumentsFinancial instrument categoriesThe carrying amounts of financial assets and liabilities in each of the financial instrument categories are as follows:


$000 $000

Financial liabilities measured at amortised cost

7,141 Payables (excluding deferred revenue and taxes payable) 6,292

7,141 Financial liabilities measured at amortised cost 6,292

Financial assets measured at amortised cost

31,510 Cash and cash equivalents 28,100

753 Receivables 681

32,263 Financial assets measured at amortised cost 28,781


Financial instrument risksStats NZ’s activities expose it to a variety of financial instrument risks, including market risk, credit risk, and liquidity risk. Stats NZ has policies to manage these risks and seeks to minimise exposure from financial instruments. These policies do not allow transactions that are speculative in nature to be entered into.

Market risk

Price risk

Price risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market prices.

Stats NZ does not have any financial instruments subject to price risk.

Fair value interest rate risk

Fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market interest rates. Stats NZ’s exposure to fair value interest rate risk is limited to its bank deposits.

Stats NZ does not actively manage its exposure to fair value interest rate risk.

Cash flow interest rate risk

Cash flow interest rate risk is the risk that the cash flows from a financial instrument will fluctuate because of changes in market interest rates.

Stats NZ does not have any financial instruments subject to cash flow interest rate risk.

Currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates.

Stats NZ makes purchases of goods and services overseas that require it to enter into transactions denominated in foreign currencies. As a result, exposure to currency risk arises.

Stats NZ manages foreign currency risks arising from contractual commitments and liabilities by entering into forward foreign exchange contracts to manage the foreign currency risk exposure.

Credit risk

Credit risk is the risk that a third party will default on its obligation to Stats NZ, causing it to incur a loss.

Stats NZ is exposed to credit risk from cash and deposits with banks, receivables, and derivative financial instrument assets. For each of these, the maximum credit exposure is best represented by the carrying amount in the statement of financial position.

Risk management

For receivables, Stats NZ reviews the credit quality of customers before granting credit. It continues to monitor and manage receivables based on their ageing and adjusts the expected credit loss allowance accordingly. There are no significant concentrations of credit risk.


Stats NZ is only permitted to deposit funds with Westpac New Zealand (Westpac), one of the approved All-of-Government banking services, and enters into foreign-exchange forward contracts with the approved banking counterparties: New Zealand Debt Management Office (NZDMO) and Westpac. These entities have high credit ratings. The only concentration of credit risk is the deposits held with Westpac. For its other financial instruments, Stats NZ does not have significant concentrations of credit risk. The credit ratings of banks are monitored for credit deterioration.

Security

No collateral or other credit enhancements are held for financial assets that give rise to credit risk.

Impairment

Cash and cash equivalents and receivables (Note 6) are subject to the expected credit loss model.

Credit risk exposure by credit risk rating grades, excluding receivables

The gross carrying amount of financial assets, excluding receivables, by credit rating is provided below by reference to Standard and Poor’s credit ratings.


$000 $000

Cash at bank

31,510 AA- 28,100

31,510 Total cash at bank 28,100

Liquidity risk

Management of liquidity risk

Liquidity risk is the risk that Stats NZ will encounter difficulty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining sufficient cash and the ability to close out market positions.

Stats NZ manages liquidity risk by continuously monitoring forecast and actual cash flow requirements.


Contractual maturity analysis of financial liabilities, excluding derivatives

The table below analyses financial liabilities (excluding derivatives) into their relevant maturity groupings based on the remaining period at balance date to the contractual maturity date. Future interest payments on floating rate debt are based on the floating rate of the instrument at balance date. The amounts disclosed are the undiscounted contractual cash flows.

Carrying Contractual Less than Between Between Moreamount cash flows 6 months 6 months 1 year and than

and 1 year 5 years 5 years $000 $000 $000 $000 $000 $000

2020 Payables (1) 6,292 6,292 6,292 - - -

2019 Payables (1) 7,141 7,141 7,141 - - -

1. Payables exclude taxation liabilities owing to IRD (GST and PAYE).

19. Explanations of major variances against budgetThe following major budget variances occurred between the 2019/20 actuals and the 2019/20 budget. The budget figures for 2019/20 are those included in the Estimates of Appropriations for the year ending 30 June 2020.

Statement of comprehensive revenue and expense

Revenue CrownRevenue Crown was lower than budget by $1.075 million. Less Revenue Crown than budget was drawn down owing to the COVID-19 impact for the 2023 Census of Population and Dwellings for the amount of $2.133 million. This is offset by the increase in Revenue Crown as a result of a fiscally neutral expense transfer of $1.058 million from 2018/19 to 2019/20 for projects that were delayed in 2018/19.

Total expensesTotal expenses were lower than the budget by $7.549 million. This is owing to the effects of COVID-19 with budgeted projects and investments being delayed in 2019/20 at Stats NZ.

Statement of financial position

Cash and cash equivalentsCash is $11.591 million lower than budget mainly owing to reduced drawdown of $14.800 million for Crown Revenue. This is offset by the receipt of an unbudgeted contract works insurance claim of $1.508 million and a lower than budget creditors and other payables balance of $1.057 million.


Debtor CrownDebtor Crown is $28.164 million higher than budget. Less Revenue Crown was drawn down than expected, as a result of the insurance proceeds being received in the 2018/19 financial year.

Non-current assetsThe net book value of non-current assets is $4.137 million less than budget, this is mainly owing to the capital injections transfer of $4.047 million from 2019/20 to 2020/21 while future capital options are reviewed.

Employee entitlementsTotal provisions for employee entitlements is $5.347 million higher than budget, this is mainly driven by changes to the valuation assumptions, such as discount rates and the change in employee numbers.

EquityEquity is lower than budget by $4.814 million. This variance is mainly owing to the transfer of $4.047 million in capital injections from 2019/20 to 2020/21 and the difference in opening equity balance as at 1 July 2019.

Statement of changes in equity

Total comprehensive revenue and expenseThe full operating surplus of $5.562 million for 2019/20 is to be returned to the Crown in 2020/21.

Capital injections and withdrawals$4.047 million of capital injections was available for draw down in 2019/20. The full amount was transferred to 2020/21 at Budget 2020.

Statement of cash flows

Receipts from Revenue CrownRevenue Crown was $13.897 million less than budget. This is as a result of the receipt of $29.299 million in insurance proceeds in late 2018/19 and retained by Stats NZ. Subsequently, due to Stats NZ having significant funds in the bank, during 2019/20, Stats NZ reduced the amount of drawdown by $14.800 million in 2019/20.

Capital injections and withdrawalsRefer to the explanation under the same heading for the Statement of changes in equity.

Cash and cash equivalents as at 30 JuneThe closing cash of $28.100 million was $11.591 million less than budget. This was mainly due to the reduced drawdown of Revenue Crown of $13.897 million and the transfer of the $4.047 million capital contribution to 2020/21. In addition, lower than budgeted opening cash balance by $2.364 million and lower than budget payments to suppliers and employees of $8.620 million.


20. The effects of COVID-19The COVID-19 coronavirus pandemic (COVID-19) had a major impact on the economic activity in New Zealand and around the world. From 23 March 2020, the New Zealand Government mandated nation-wide restrictions, depending on the alert level status, which required most Stats NZ employees to work from home, defer non-essential operations, or adapt operations to meet strict COVID-19 related health and safety protocols. On 13 May 2020, New Zealand entered level 2 allowing near normal operations to resume. At the time of approving the financial statements it is uncertain what the continuing effect of COVID-19 will be on the New Zealand and global economies. Impacts may include timing of future cashflows, impairment of receivables, or impacts on other assets etc. As Stats NZ provides essential services to the New Zealand Government, the impacts of COVID-19 on financial performance may be less adverse than many other industries and businesses.

The main impact on the Department’s financial statements as a result of COVID-19 is explained below:

• A reduction in operating and capital expenditure owing to projects being delayed as a result of the economic uncertainty.

• 2023 Census and the associated costs, budgeted to occur in 2019/20, was delayed.

Please refer to pages 10–12 for more non-financial impacts to Stats NZ due to COVID-19.


Appropriation statementsThe following statements report information about the expenses and capital expenditure incurred against each appropriation administered by Stats NZ for the year ended 30 June 2020.

Statement of departmental budgeted and actual expenses and capital expenditure incurred against appropriationsFor the year ended 30 June 2020

2019 2020 2020 2020 2020Expenditure

after re-measurement

Expenditure before re-

measurement

Re-measurement

Expenditure after re-

measurement

Approved appropriation(1)

$000 $000 $000 $000 $000

Vote Statistics

Departmental output expenses

494 Data Futures Partnership - - - -

2,760 Services to other agencies RDA 2,065 - 2,065 3,651

3,254 Total departmental output expenses 2,065 - 2,065 3,651

Departmental capital expenditure

5,267Stats NZ capital expenditure – Permanent Legislative Authority (PLA) under section 24(1) of the Public Finance Act 1989

7,380 - 7,380 10,000

5,267 Total departmental capital expenditure 7,380 - 7,380 10,000

Multi-category appropriation

32,412 Stewardship of government data and statistical services 30,185 - 30,185 33,626

52,110 Population, social and labour market data and statistical information services 51,621 - 51,621 54,965

52,805 Economic and business data and statistical information services 52,978 - 52,978 51,081

137,327 Total multi-category appropriation 134,784 - 134,784 139,672

Multi-year appropriation

- 2023 Census of Population and Dwellings 13,987 - 13,987 16,120

14,188 2018 Census of Population and Dwellings - - - -

14,188 Total multi-year appropriation 13,987 - 13,987 16,120

160,036 Total annual, multi-year and permanent appropriations 158,216 - 158,216 169,443

1. These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the Public Finance Act 1989. End-of-year performance information on these appropriations has been reported on pages 9 and 39–44.


Reconciliation of multi-year appropriationsFor the year ended 30 June 2020

The 2023 Census appropriation was established from 1 July 2019 to 30 June 2024, to provide for flexibility in planning for the 2023 Census of Population and Dwellings as a single programme over a five-year period.

2023 Census of Population and

DwellingsAppropriation, adjustment, and use $000

Original appropriation 16,120

Total adjusted appropriation 16,120

Actual expenses in 2019/20 (13,987)

Total actual expenses (13,987)

Balance of appropriation 2,133

Statement of departmental unappropriated expenditure and capital expenditureFor the year ended 30 June 2020

Stats NZ had no unappropriated expenses or capital expenditure for the year ended 30 June 2020 (2019: $Nil).

Statement of departmental capital injectionsFor the year ended 30 June 2020

2019 2020 2020

Actual Actual Approved appropriation(1)

$000 $000 $000

Vote Statistics

12,781 Stats NZ – Capital injection - -

1. These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the Public Finance Act 1989.


Statement of departmental capital injections without, or in excess of, authorityFor the year ended 30 June 2020

Stats NZ had not received any capital injections during the year without, or in excess of, authority.

Statements of revenue and output expensesThe overarching purpose of the official statistics multi-category appropriation is to ensure the availability and promoting the use of the highest priority data and official statistical information to add value to decision making.

The appropriation comprises the following output categories:

• stewardship of government data and statistical services

• population, social, and labour market data and statistical information services

• economic and business data and statistical information services.

Stewardship of government data and statistical services The scope of this output category is limited to coordination of statistical and data services for government, through System Leadership of the Official Statistics System (OSS) and Stewardship of the Government Data System; statistical and data management advice; provision of access to official statistics; oversight of the IDI; and the provision of ministerial services.


2019 2020 2020Actual Actual Approved

appropriation(1)

$000 $000 $000

32,494 Revenue from the Crown 30,240 32,466

7,821 Other revenue 1,126 1,160

40,315 Total operating revenue 31,366 33,626

32,412 Total output expenditure 30,185 33,626

7,903 Net operating surplus/(deficit) 1,181 -

1. These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the Public Finance Act 1989. End-of- year performance information on these appropriations has been reported on pages 39–44.


Population, social, and labour market data, and statistical information servicesThe scope of this output category is limited to delivery of data and statistical information services relating to the population, household economics, social conditions (including child poverty), the labour market, and the environment.



appropriation(1)

$000 $000 $000


13,260 Other revenue 3,450 2,944



7,274 Net operating surplus/(deficit) 3,998 -

1. These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the Public Finance Act 1989. End-of year performance information on these appropriations has been reported on pages 39–44.

Economic and business data and statistical information servicesThe scope of this output category is limited to the delivery of data and statistical information services relating to business and the economy.



appropriation(2)

$000 $000 $000


14,582 Other revenue 4,111 3,909



7,531 Net operating surplus/(deficit) 383 -

1. These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the Public Finance Act 1989. End-of-year performance information on these appropriations has been reported on pages 39–44.


2018 Census of Population and DwellingsThis appropriation is limited to completing the 2018 Census, and the administration and management of the ongoing census programme, as required under the Statistics Act 1975.



appropriation(1)

$000 $000 $000

14,188 Revenue from the Crown - -

- Other revenue - -

14,188 Total operating revenue - -

14,188 Total output expenditure - -

- Net operating surplus/(deficit) - -

1. These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the Public Finance Act 1989. End-of-year performance information on these appropriations has been reported on pages 8–9.

2023 Census of Population and DwellingsThis appropriation is limited to completing the 2018 Census, conducting the 2023 Census, and the administration and management of the on-going census programme, as required under the Statistics Act 1975.



appropriation(2)

$000 $000 $000

- Revenue from the Crown 13,987 16,120

- Other revenue - -

- Total operating revenue 13,987 16,120

- Total output expenditure 13,987 16,120


2. These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the Public Finance Act 1989. End-of-year performance information on these appropriations has been reported on page 9.


Data Futures PartnershipThis appropriation is limited to enabling the activities of the Data Futures Partnership. The Data Futures Partnership is intended to achieve the continued support of the independent, cross-sector Data Futures Partnership to ensure New Zealand’s data is used effectively to create social and economic value for all New Zealanders.



appropriation(1)

$000 $000 $000

500 Revenue from the Crown - -

- Other revenue - -

500 Total operating revenue - -

494 Total output expenditure - -

6 Net operating surplus/(deficit) - -

1. These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the Public Finance Act 1989.

Services to other agencies RDAThis appropriation is limited to the provision of services by Stats NZ to other agencies, where those services are not within the scope of another departmental output expense appropriation in Vote Statistics. This appropriation is intended to achieve the provision of shared services with other government agencies for the efficient and effective management of the Crown estate, such as the provision of shared accommodation in Christchurch.



appropriation(2)

$000 $000 $000

- Revenue from the Crown - -

2,760 Other revenue 2,065 3,651




2. These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the Public Finance Act 1989. End-of-year performance information on these appropriations is reported on pages 39–44.


Contact us

Stats NZ Information Centre:

[email protected] Phone toll-free 0508 525 525Phone international +64 4 931 4600

www.stats.govt.nz

STATS NZ

’S AN

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T | FOR TH

E YEAR EN

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30 JUN

E 2020

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Stats NZ’s Annual Report Pūrongo ā-tau o Tatauranga Aotearoa

Mō te mutunga o te tau i te 30 o ngā rā o Pipiri 2020 For the year ended 30 June 2020

2020

Documents

Stats NZ’s AnnualR ep ot r