Statement of Performance Expectations for the 2023-2024 financial year

Contents

1. Introduction
2. Minister’s letter of expectations
3. Our strategic framework
4. Outcomes and performance measures
5. Forecast financial statements
6. Notes to the forecast financial statements

Statement of Performance Expectations for the year ending 30 June 2024

This Statement of Performance Expectations reflects our proposed performance targets and forecast financial information for the year ahead. We produced it in accordance with section 149E of the Crown Entities Act 2004.
The Board of Herenga ā Nuku Aotearoa has authorised, as appropriate, for issue the forecast financial statements and underlying assumptions in this document in accordance with its role under the Crown Entities Act 2004. We do not intend to update the forecast financial statements subsequent to presentation.

Introduction

This is the 2023-2024 Statement of Performance Expectations (SPE), prepared by Herenga ā Nuku Aotearoa. We provide all information in accordance with the Crown Entities Act 2004.

This SPE reflects our operational priorities for the 2023-2024 financial year. The SPE also incorporates the priorities of the Government, and the responsible Minister. 

To support this work, we will continue to use the strategy outlined in the Statement of Intent 2021 -2025. We review our performance measures annually to ensure they remain fit for purpose. We will report our performance results in the 2023-2024 Annual Report.

We provide the SPE in two parts:

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

New performance measures

As signalled in our Statement of Intent and our previous Statement of Performance Expectations, we have reviewed our performance measures and developed new fit-for-purpose measures. 

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

In the past year we have tested the reporting mechanisms and established baselines for these new measures.

We sought advice from the Office of the Auditor General and our auditors on these new measures.  We have incorporated some of their suggestions into this SPE, including adjusting some of our targets. We will look to implement the remaining suggestions over the coming year for the next SPE.

How we will assess performance

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

The performance measurement section of this report sets out our performance measures, targets, and estimates for the year ending 30 June 2024.

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

Some of our performance measures survey our stakeholders and potential stakeholders. We drew this list of stakeholders from and potential stakeholders from a sample of contacts in our case management system, supplemented with personal contacts and suggestions from staff, board members and regional field advisors.   

Enduring expectations for Crown entities

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

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

Public Service Pay Gaps Action Plan

We have published our Kia Toipoto Gender and Ethnic Pay Gaps Action Plan to ensure our workplace is fair and equitable, especially for women, Māori, Pacific and ethnic employees. The plan focuses on ensuring all our HR and remuneration processes are free from bias, and broadening our approach to recruitment. 

Carbon Neutral Government Programme requirements

We are taking active steps to reduce greenhouse gas emissions. We are meeting the Carbon Neutral Government Programme requirements and continue to incorporate them into our work plan.

Forecast financial statements

The forecast financial statements provide all appropriate information and explanations needed to fairly reflect the forecast financial operations and financial position for the year ending 30 June 2024, in accordance with s149G of the Crown Entities Act 2004.

Minister’s letter of expectations

Each year the Minister sets out in a letter of expectations the areas they would like Herenga ā Nuku to demonstrate results in.

The Minister at the time expected us to:

1. Continue to create new outdoor access opportunities while considering the associated environmental cost. This should include progressing regional projects in Tairāwhiti, Franklin/North Waikato and Pūhoi to Mangawhai as well as the partnership with Te Araroa, and any opportunities to improve cycling access.
2. Continue to develop and improve comprehensive public sets of digital maps of public access in Aotearoa.
3. Continue to progress Herenga ā Nuku’s Māori partnership strategy to develop new opportunities for access for Māori.
4. Continue to grow and support a nationwide network of community track-building groups.

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

The Minister expects Herenga ā Nuku to follow the advice Te Kawa Mataaho provided in the updated Letter of Enduring Expectations for statutory Crown entities. Key priorities in that advice include a unified, value-based government for all New Zealanders, supporting future-focused Māori-Crown relationships, and contributing to improving wellbeing. The Minister also expects that we will implement the Public Service Pay Gaps Action Plan and the requirements of the Carbon Neutral Government Programme.

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

Our Strategic Framework

Our role — Where we fit into the public service

To provide New Zealanders with free, certain, enduring and practical access to the outdoors. As we improve public access to the outdoors, we contribute to the government’s broader wellbeing objectives.

Our mission — Herea te whenua ki te tangata, tangata ki te whenua

To protect and enhance public access to the outdoors for everyone in Aotearoa.

Impacts over time — How we contribute and influence

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

Our outcomes - How we know we are succeeding

The following outcomes are important to our success:

1. Public access to the outdoors is maintained and enhanced. 
2. Tangata whenua oranga is enhanced through improved outdoor access. 
3. Communities are supported to improve outdoor access in their rohe. 
4. People have access to accurate information about public access to the outdoors.
5. People feel confident engaging in issues relating to public access to the outdoors. 

Outcomes and performance measures

Outcome 1: Public access to the outdoors is maintained and enhanced

Source

• Revised from Statement of Intent 2021-2025 (p8)
• Recommendations 3, 6, and 7 of the Walking Access Act Review
• Walking Access Act 2008 s9 and 10
• Minister's Letters of Expectations 2021-2023

Purpose

When we achieve this outcome, people have more opportunities to connect with te taiao and to experience nature, either through recreation or active transport. This supports the government’s well-being framework. Good public access to the outdoors supports improved mental and physical health, connection to the environment, connection within and between communities, low emissions transport, and sustainable regional economic development.

Our activities

• Preparing access recommendations reports for the Overseas Investment Office, and supporting implementation of successful recommendations to create new access
• Investigating access opportunities
• Partnering with Te Araroa Trust, and supporting Te Araroa
• Facilitating resolutions to access disputes
• Providing advice and submissions to other agencies on public access issues and policies

Outcome 2: Tangata whenua oranga is enhanced through improved outdoor access

Source

• Recommendations 3, 7, 13 (a), 19, 20 and 21 of the Walking Access Act Review
• Minister's Letters of Expectations 2021-2023
• Statement of Intent commentary on Minister's expectations (p7)
• Herenga ā Nuku's Māori Partnership Strategy

Purpose

Access to and engagement with the outdoors is not the only influence on orangatanga, but it is an established and research-proven influence.

Tangata whenua participation in the outdoors is significantly less than non-Māori. Increasing outdoor access removes a significant barrier to tangata whenua participation. Oranga is therefore enhanced physically, socially and spiritually.

Specific elements of orangatanga that relate to public access to the outdoors include physical activity, connection with taiao, connection with korero a tupuna, social connection and whakataetae.

Public access also protects and enhances the mauri of the whenua, which affects orangatanga.

Our activities

• Involving mana whenua in public access issues as they arise
• Supporting the promotion of Māori culture and heritage through public access

Outcome 3: Communities are supported to improve outdoor access in their rohe

Source

• A subset of outcome 1 in SOI 2021-2025 and SPE 2022-2023
• Minister's Letters of Expectations 2021-2023
• Recommendations 5, 7, 13 (c.) and 18 of the Walking Access Act Review
• Walking Access Act 2008, s10(1) (a), (b), (e), (h) and (j)

Purpose

Supporting communities to improve their local outdoor access opportunities empowers those communities. It allows them to design and manage solutions to the issues they face.

That can range from small recreation and conservation groups that want access to do their activity, to large projects involving multiple parties that create a network of connections across an entire region.

Our activities

• Developing strategies that extend access, recreation, and targeted tourism opportunities at a regional scale
• Attending or hosting workshops and meetings with other government agencies, landholders, mana whenua, organisations and community groups to promote access
• Supporting tracks and trails groups to create, maintain and enhance public access to the outdoors
• Providing Enhanced Access Grants to help community groups obtain and enhance public access to the outdoors

1. This measure has been reworded since 2021-2022. Previously it referred to stakeholder workshops rather than external community-based meetings or workshops.

Outcome 4: People have access to accurate information about public access to the outdoors

Source

• Revised from Statement of Intent 2021-25 (p9) outcomes 2 and 3
• Minister's Letter of Expectations 2023
• Recommendations 7, 9, 10 and 12 of the Walking Access Act Review
• Walking Access Act 2008 s10(1)(c.), (j)

Purpose

When we provide people with accurate, helpful information about public access to the outdoors, we enable them to make informed choices. This includes information about what access is available, such as maps and explanations of the nature of various forms of public access, as well as information about behaviour, such as respecting the land and the people who care for that land.

Our activities

• Identifying public access across all land types
• Managing and publishing free public access maps
• Providing advice on best practice for access to the outdoors
• Maintaining close partnerships with LINZ, DOC and councils to improve geospatial data on outdoor access
• Partnering with Mountain Safety Council to support the Plan My Walk app

Outcome 5: People feel confident engaging in issues relating to public access to the outdoors

Source

• While not explicitly sourced in legislation, the Board and chief executive are clear that trust in the public service, and specifically Herenga ā Nuku, is fundamental to empowering people to maintain and enhance public access to the outdoors.

Purpose

People’s trust in Herenga ā Nuku comes when our actions demonstrate competence, capability, reliability, transparency and motivation to improve public wellbeing (genuinely caring for the experience and well-being of others).²

If people trust Herenga ā Nuku and are confident that we provide reliable, credible advice and ethical leadership they will be more confident advocating to maintain and enhance public access to the outdoors.

Our activities

• All of the above

2. Deloitte: Why trust should be one of your key performance indicators

3. Before 2022-2023 this measure was the percentage of enquiries acknowledged within 10 working days.

Forecast Financial Statements

The forecast financial statements provide all the appropriate information and explanations needed to fairly reflect the forecast financial operations and financial position of Herenga ā Nuku for the year ending 30 June 2024 in accordance with s149G of the Crown Entities Act 2004.

Our activities contribute to the non-departmental output expense, Support for Walking Access, within Vote Agriculture, administered by the Ministry for Primary Industries. We will receive $3,595,000 (GST exclusive) in Crown funding in 2023-2024, ($3,595,000 in 2022-2023).

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

Statement of Forecast Comprehensive Revenue and Expense

For the Year Ending 30 June 2024

Statement of Forecast Financial Position

As at 30 June 2024

Statement of Forecast Changes in Equity

As at 30 June 2024

Statement of Forecast Cash Flows

For the year ending 30 June 2024

Notes to the Forecast Financial Statements

Statement of Accounting Policies

Reporting Entity 

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

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

The forecast financial statements reflect the operations of Herenga ā Nuku only, and do not incorporate any other entities. These forecast financial statements are for the year ending 30 June 2024. 

Basis of Preparation 

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

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

Presentation Currency and Rounding 

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

Significant Accounting Policies 

Revenue 

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

Funding from the Crown 

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

Interest revenue 

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

Grant Expenditure 

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

Leases 

Finance leases 

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

Operating leases 

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

Cash and Cash Equivalents 

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

Debtors and other Receivables 

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

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

Investments 

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

Property, Plant and Equipment 

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

Additions 

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

Disposals 

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

Subsequent costs 

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

Depreciation 

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

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

Intangible Assets 

Software acquisition and development 

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

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

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

Staff training costs are recognised as an expense when incurred. Costs associated with maintaining computer software are recognised as an expense when incurred. Costs associated with development and maintenance of our website are recognised as an expense when incurred. 

Amortisation 

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

Impairment of Property, Plant and Equipment and Intangible Assets 

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

Non-cash-generating assets 

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

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

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

Creditors and other Payables 

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

Employee Entitlements 

Short-term employee entitlements 

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

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

Presentation of employee entitlements 

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

Superannuation Schemes 

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

Goods and Services Tax (GST) 

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

Income Tax 

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