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BM-2-4-2020-2

18 December 2019

Treasury Circular 2019/12

Restricted Distribution

Chief Executives
Directors of Finance/Chief Financial Officers

Contact for Enquiries:

Budget process queries:
Your Treasury Vote Analyst

CFISnet entry queries:
s9(2)(k)

BUDGET 2020: TIMETABLE AND TECHNICAL REQUIREMENTS FOR
AGENCIES

Introduction
1.  This circular outlines the indicative timetable for the Budget 2020 process, and
includes information about key items in the production process.
2.  The “Budget 2020 Process and Technical Guide for Agencies” supplements this
circular and outlines technical requirements for Budget 2020. It is now available on
CFISnet. The templates annexed to the Guide are also available on CFISnet in
Word format as related files.
3.  Please note that Budget Day for 2020 has not yet been finalised or publicly
communicated. As such, the production timetable should be considered
indicative and treated in confidence. It is possible that timeframes may need to
be amended following confirmation of Budget Day.
4.  The Treasury will release a final timetable soon after Budget Day for 2020 has
been announced. In addition, a circular will be issued in late January covering the
reporting requirements for the five-year fiscal forecasts.
Budget decisions
5.  Budget Ministers will make decisions on a Budget package to recommend to Cabinet
from mid-February to March. Vote Analysts will communicate with agencies what
should be included in their significant financial recommendations in order to meet the
Tuesday 17 March financial recommendations deadline. Agencies can contact
Vote Analysts to discuss specific issues or concerns.
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Titles and descriptions for the Summary of Initiatives

6.  The Summary of Initiatives for Budget 2020 will be published on Budget Day. This
document provides a reconciliation of all Budget decisions against the operating
and capital allowances.
7.  Agencies are required to submit a clear title and description, and the funding details
for each Budget initiative. This information should be entered in CFISnet (CFISnet >
Baselines > Budget Initiatives > Initiatives or Recommendations Entry).
8.  Final information must be submitted with the final financial recommendations by
Tuesday 17 March. The Summary of Initiatives will be drawn from CFISnet, making
it important that information is clear and high quality. Specific guidance can be found
in the Budget 2020 Process and Technical Guide for agencies.

9.  Agencies are not required to update the Budget initiative templates or supporting
information to match any changes made to titles and descriptions in CFISnet, but
titles and descriptions may need updating to reflect final funding decisions.

10. Agencies should work with their communications teams early on to ensure the titles
and descriptions are clear and can be understood by a member of the public.

11. Agencies should also test the titles and descriptions with their Minister’s Office to
ensure they are comfortable with the wording. Ministerial press secretaries will use
the list of initiative titles and descriptions to write press releases.

Budget Economic and Fiscal Update (BEFU) Forecasts
12.  Agencies must provide financial forecasts to the Treasury to inform the
Treasury’s forecasts for the 2020 BEFU. A separate circular will be released early
next year with reporting requirements and key dates. At this stage, it is likely that
the five-year forecast will be required sometime between 27 March and 3 April.
March Baseline Update (MBU)
13.  The Baseline Updates (which take place twice a year) provide opportunities to
update baselines to take account of any Cabinet decisions made since OBU,
move funds between appropriations or years in accordance with the delegations
to Joint Ministers in Cabinet Office Circular CO(18)2, make forecast adjustments
to appropriations, and establish new appropriations.
14.  The Treasury coordinates the Ministerial letter process, and confirms whether the
requested changes are consistent with CO(18)2 via a response letter and on
CFISnet. Dates for the MBU process are outlined below.
15.  The baseline update process can be resource intensive and iterative between
Vote teams and agencies. Often, time and effort is spent determining whether or
not changes proposed in a baseline update are consistent with the rules for
decisions able to be taken by joint Ministers outlined in Cabinet Office Circular
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CO(18)2. For instance, expense and capital transfers can be used only where a
factor outside the department’s control has caused a delay in a specific and
discrete project.  To reduce this time and effort, we encourage you to include
information in the Ministerial letter to demonstrate that the proposed changes are
consistent with CO(18)2.
16.  If a change is outside the delegation to joint Ministers in CO(18)2, the technical
Budget package (see below) provides an opportunity to obtain Cabinet
agreement to fiscally-neutral transfers between appropriations and years.
Technical initiatives
17.  Technical Budget initiatives are ones that do not seek new funding and do not
carry significant policy implications.
18.  Proposals with financial implications that cannot be agreed by Joint Minister for
MBU consistent with CO(18)2 can be agreed through the technical initiatives
Cabinet paper (where they are technical and non-significant).
19.  Technical initiatives are to be submitted in CFISnet by Tuesday 2 March. Further
guidance on technical initiatives can be found in Annex Two of the Budget 2020
Process and Technical Guide for agencies.
Estimates production
20.  All changes to appropriations agreed by Cabinet through the Budget must be
agreed by Parliament in an Appropriation Act. Departments should submit all
Estimates documents as soon as they are finalised to enable prompt processing.
Final deadlines are outlined below.
Budget Moratorium
21. There will be a moratorium on Cabinet, Cabinet Committees and joint Ministers
approving any financial recommendations after Cabinet agrees the Budget package
(expected to be Monday 30 March) until Budget Day.
22. Departments must not submit any papers to Cabinet with financial implications
during this period. The moratorium exists so that the Budget documents and
legislation accurately reflect the fiscal implications of all Government decisions.

Alex Harrington
Manager, Budget Management
for the Secretary to the Treasury

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Budget 2020 Process
Unless advised otherwise all requirements are due by 1pm. All coloured boxes (noted in the key below) are subject to change following finalisation of
Budget Day.

December
January
February
March
April
May

Late Jan: Draft priority
2 March: Financial recommendations
Budget Day:
packages due from
due for technical initiatives, including
Appropriation
Coordinating Ministers
titles and descriptions
Bil s introduced
to the Minister of

in Parliament
Finance
17 March: Financial recommendations
due for significant initiatives, including
titles and descriptions
Budget

23 March: Cabinet considers technical
decisions
Budget package
process

30 March: Cabinet considers
significant Budget package
Dec-Late Jan: Treasury Vote teams and secretariat
Mid-Feb – March Budget Ministers and Cabinet Commit ees consider Budget
30 March – Budget Day: Budget Moratorium
groups make assessments and advice is provided to the
2020 packages
Minister of Finance and Coordinating Ministers

MBU
MBU
BEFU
Budget Day:
13 Feb: Departments submit
Week of 16 Mar: Minister of Finance
27 March - 3 Apr:
Budget
Coredata requests
signs MBU letters and notifies Ministers
Departments to
documents

of outcomes
submit changes to
released
20 Feb: Departments finalise

forecasts
Updates
MBU data and five-year
BEFU
and
forecasts into CFISnet and
27 March: Departments to submit
MBU letters are sent to the
Specific Fiscal Risks
Estimates
Minister of Finance
production
Estimates signed by Appropriation Ministers and sent to Minister of Finance
24 March: Votes which have no Budget 2020 initiatives
31 March: Votes which have Budget 2020 initiatives
6 Apr: Forecast departments and Votes requiring changes following Cabinet’s decisions on
the Budget 2020 package
  MBU + BEFU
Budget Cabinet Papers
Estimates Documents
Appropriation bil s
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Budget 2020
Process and Technical Guide for Agencies

18 December 2019

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About this guidance
This guidance provides information for agencies on technical processes related to Budget
2020, including key submission dates and sign-off processes. It is intended to complement
the main guidance on significant Budget initiatives (Circular 2019/10). For additional
information on key changes to the Budget 2020 process, how to submit a Budget initiative,
and the Budget templates please refer to the main guidance and CFISnet entry guidance
(both part of Circular 2019/10).
Please note that, in some cases, specific dates (such as Budget Day) have not been
finalised as they are yet to be confirmed by Ministers. The Minister of Finance will confirm
Budget Day at the Finance and Expenditure Committee in February 2020. This guidance will
be updated following confirmation.
Please get in touch with your Vote Analyst at the Treasury in the first instance if you have
any questions about the content of this guidance.

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Budget 2020 Process
Unless advised otherwise all requirements are due by 1pm. All coloured boxes (noted in the key below) are subject to change following finalisation of Budget Day.

December
January
February
March
April
May

Late Jan: Draft priority
2 March: Financial recommendations
Budget Day:
packages due from
due for technical initiatives, including
Appropriation Bil s
Coordinating Ministers
titles and descriptions
introduced in Parliament
to the Minister of

Finance
17 March: Financial recommendations
due for significant initiatives, including
titles and descriptions
Budget

23 March: Cabinet considers technical
decisions
Budget package
process

30 March: Cabinet considers
significant Budget package
Dec-Late Jan: Treasury Vote teams and secretariat
Mid-Feb – March Budget Ministers and Cabinet Commit ees consider Budget
30 March – Budget Day: Budget Moratorium
groups make assessments and advice is provided to
2020 packages
the Minister of Finance and Coordinating Ministers

MBU
MBU
BEFU
Budget Day: Budget
13 Feb: Departments submit
Week of 16 Mar: Minister of Finance
27 March - 3 Apr:
documents released
Coredata requests
signs MBU letters and notifies Ministers
Departments to

of outcomes
submit changes to
20 Feb: Departments finalise

forecasts
Updates
MBU data and five-year
BEFU
and
forecasts into CFISnet and
27 March: Departments to submit
MBU letters are sent to the
Specific Fiscal Risks
Estimates
Minister of Finance
production
Estimates signed by Appropriation Ministers and sent to Minister of Finance
24 March: Votes which have no Budget 2020 initiatives
31 March: Votes which have Budget 2020 initiatives
6 Apr: Forecast departments and Votes requiring changes following Cabinet’s decisions on the
Budget 2020 package
MBU + BEFU
Budget Cabinet Papers
Estimates Documents
Appropriation bil s
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Budget Decisions Technical Process
Budget Ministers and Cabinet Committees
1.
Budget Ministers and Cabinet Committees will consider Budget packages over
February and March before Cabinet agrees to a final Budget package. This package
is likely to be taken to Cabinet on Monday 30 March for consideration.
Information required from agencies for Budget 2020 products
Financial Recommendations and Titles and Descriptions
2.
Published documents such as the Estimates, the Summary of Initiatives, and the
Wellbeing Budget Document (which will be published on Budget Day), as well as the
Cabinet papers, rely on clear, detailed information in the initiative title and description.
This information usually needs to be updated from the information provided at the time of
submission to reflect any scaling or changes in an initiative from the original initiative
submitted.
3.
You will need to provide your titles and descriptions in CFISnet by Tuesday 17 March.
•  See Annex One for more detailed guidance.
Significant or technical Budget initiative submission
4.
Budget initiatives must be uploaded by departments into CFISnet as either significant
or technical.
5.
Technical initiatives are those initiatives that:
•  do not seek new funding from the centre over the forecast period, and,
•  do not carry significant policy implications.
6.
The technical Budget initiative proposal Cabinet paper is prepared by Treasury,
and includes a large number of financial recommendations for every agreed technical
Budget Initiative proposal. Recommendations for technical initiatives are due in
CFISnet on Monday 2 March.
7.
Significant initiatives are those initiatives that do seek new funding from the centre over
the forecast period, and/or do carry significant policy implications. This includes
significant policy changes that are fiscally neutral (e.g., funded through reprioritisation).
8.
The final Budget package Cabinet paper is prepared by Treasury, and includes
financial recommendations for every agreed significant Budget Initiative proposal
(i.e., for cost pressure and new spending initiatives). Recommendations for significant
initiatives are due in CFISnet on Tuesday 17 March.
9.
See Annex Two for more detailed guidance on the technical and significant initiatives.
March Baseline Update (MBU)
10.  The March Baseline Update (MBU) is a technical update that allows agencies to
update their baselines to reflect Cabinet and joint Ministerial decisions that have taken
place since the last baseline update in October, and agree changes to baselines
consistent with the delegation to Joint Ministers in CO(18)2. The Treasury coordinates
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the Ministerial letter process, and confirms whether the requested changes are
consistent with CO(18)2 via a response letter and on CFISnet.
11.  Proposals with financial implications that cannot be agreed by Joint Ministers
consistent with CO18(2) can be agreed by Cabinet either through the technical
initiatives Cabinet paper (for technical and non-significant changes), or the significant
initiatives Cabinet paper (where the change represents a policy decision). See Annex
Two for further information.
12.
The Baseline Update Guidance has been uploaded alongside Circular (2019/12) on
CFISnet.
MBU Timeline
13.  All requirements are due by 1pm on given dates.
Deadline
Requirement
Now – Thursday 13 February
Departments discuss their specific requirements for MBU with Treasury
Vote teams.
Now – Thursday 13 February
Coredata changes to be submitted to CFISnet for MBU.
Thursday 20 February
Final date for departments to update and lock CFISnet for changes.
Thursday 20 February
Appropriation Minister submission to Minister of Finance. Please provide
2 copies of the appropriation Minister’s letter to the Minister of Finance.
Thursday 27 February
Treasury Vote teams to advise departments of status of updates.
Department to update CFISnet to reflect all changes advised by Treasury.
Week beginning 16 March
Minister of Finance notifies appropriation Ministers of the outcome of MBU.

Budget Economic and Fiscal Update (BEFU) forecasts – Due between Friday 27 March
and Friday 3 April
14.  Departments are required to provide financial forecasts to the Treasury to inform the
Treasury’s forecasts for BEFU 2020. A separate circular will be released early next
year with reporting requirements and key dates.
Specific Fiscal Risks – Due Friday 27 March
15.  Specific fiscal risks (SFRs) identify (to the fullest extent possible) all government
decisions and other circumstances known to the Government that may have a material
impact on the fiscal outlook, but are not certain enough in timing or amount to include
in the fiscal forecasts – both potential policy changes, and known cost pressures.
Departments are required to inform the Treasury of all specific fiscal risks by Friday
27 March, so that they can be included in BEFU 2020. The BEFU circular (to be
released next year) will contain more information. In the interim, please refer to
Treasury Circular 2019/08, which contains some information about the SFRs.
Estimates production – Due March/April (dates below)
16.  All changes to appropriations agreed by Cabinet through the Budget must be agreed
by Parliament in an Appropriation Act.
17.
Departments should submit all Estimates documents as soon as they are finalised to enable
prompt processing. The production process will be split into three streams depending on
whether the relevant Vote has Budget initiatives or is a forecasting department.
18.
These dates are outlined below.
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Deadline for submission
Deadline for submission

to Appropriation Minister
to the Minister of Finance
Tranche 1 – Votes which have no
Monday 23 March
Tuesday 24 March
Budget 2020 initiatives
Tranche 2 – Votes which have
Monday 30 March
Tuesday 31 March
Budget 2020 initiatives
Tranche 3 – Forecasting departments
Monday 6 April
Tuesday 7 April
and Votes requiring changes following
Cabinet’s consideration of the Budget package

See Annex Three and Annex Four for more detailed guidance.
Budget Moratorium – From Monday 30 March to Budget Day
19.  There will be a moratorium on Cabinet, Cabinet Committees and joint Ministers
approving any financial recommendations after Cabinet agrees the final Budget
package (expected to be Monday 30 March) until Budget Day.
20.  Departments must not submit any papers to Cabinet, Cabinet Committees or joint
Ministers with financial implications (that change appropriations) during this period. The
moratorium exists so that the Budget documents and legislation accurately reflect the
fiscal implications of all Government decisions at the time of their release.
Proactive Release – May to July
21.  The Minister of Finance proactively releases Budget-related documents every year
about two months after Budget day. This release is desirable for government
transparency and public accountability. It also helps to reduce the number of Official
Information Act requests related to the Budget received by the Minister of Finance,
appropriation Ministers, the Treasury and departments.
22.  The release includes key documents that have been used in Budget decision-making,
including:
•  Budget Ministers’ materials
•  Relevant Treasury Reports and Aide Memoires, and
•  Cabinet Minutes, including the final Budget paper and financial recommendations
package.
23. The Treasury will release guidance with more information about this process in the New Year.

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Annex One: Summary of Initiatives in Budget
1.
The Summary of Initiatives for Budget 2020 will be published on Budget Day, and
provides the title, description, and agreed funding for every approved initiative (with the
exception of those provided for in contingency that cannot be announced). Additional
information may be required for the Wellbeing Budget, and the Treasury will release
more guidance if required.
2.
The Summary of Initiatives will be drawn from the Recommendations module in
CFISnet. Therefore, it is important that agencies provide high quality titles and
descriptions in the module (CFISnet > Baselines > Recommendations > Department
Entry).
3.
Agencies should check that titles, descriptions and funding are consistent in both
modules – the two modules do not update one another after draft recommendations
are saved. Agencies should ensure that titles and descriptions have been updated to
reflect final funding decisions.
4.
High quality refers to:
•  Meaningful titles in plain English. (Good examples from previous Budgets include:
“Managing our borders: Screening departing passengers”, “Implementation of the
Social Housing Reform Programme” and “Completion of the Twin Coasts Cycle
Trail”.)
•  Meaningful first word/beginning for titles. Initiatives are listed alphabetically and it
is important that the first word in the title distinguishes it from other initiatives. (For
example, the use of words such as “increasing”, “additional” and “establishing” should
be avoided).
In previous Budgets, this was overcome in some instances by reordering the title to
lead with the service/programme e.g. “Intensive Wraparound Service – Increasing
Access”.
•  No jargon, abbreviations or acronyms. (Commonly used acronyms understood by
the general public, e.g. GST, are acceptable; public sector specific abbreviations, e.g.
MBIE, CYF, DHB, TEC, EPA, MFAT etc., are not.)
•  Descriptions explain the purpose of the funding and the intended outcome. The
character limit for descriptions in CFISnet has been extended to ensure agencies
have enough space to adequately describe initiatives.
Descriptions should include information on the expected outcome of the initiative, and
any key wellbeing outcomes.
•  Descriptions beginning with the stem statement “This funding will…” or “This
initiative will…”. Where the initiative is a business-as-usual pressure, the stem
statement is to begin with “This additional funding will…”.
•  Descriptions provide contextual information, where relevant, eg, ‘this funding
contributes to an existing programme that currently receives $x million per annum’.
•  The titles and descriptions of cost-pressure initiatives provide context to the
agency and service that it is relevant to. Initiatives are listed alphabetically and it is
important that descriptors are adequately informative. (For example, Crown
Prosecution Services – Sustainable Funding).
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5.
Refer to Circular (2019/10) for further guidance on writing titles and descriptions for
Budget 2020.
6.
Agencies should work with its communications teams to ensure the titles and
descriptions are appropriate and can be understood by a member of the public.
7.
Agencies should also test the titles and descriptions with the relevant Minister’s Office
ahead of time to ensure they are comfortable with the wording. If there are any
disputes about wording, the Treasury, in conjunction with the Minister of Finance’s
Office, will make final decisions.

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Annex Two: Financial Recommendations
1.  Financial recommendations sign off sheets for Chief Financial Officers can be found below.
Significant or Technical Budget Initiatives
2.
Budget initiatives are categorised as either significant or technical.
3.
Technical initiatives are those initiatives that:
•  do not seek new funding from the centre over the five year forecast period, and,
•  do not carry significant policy implications.
4.
Significant initiatives are those initiatives that do seek new funding from the centre
over the five year forecast period, and/or do carry significant policy implications. This
includes significant policy changes that are fiscally neutral (eg, funded through
reprioritisation).
5.
When entering Budget initiatives into CFISnet, all Budget initiatives will be classified as
“significant” by default except where “technical” has been selected in the Priority Area
dropdown (ie, not a cost pressure or a new spending initiative).
Technical Budget Initiatives
6.
Your agency must complete the financial recommendations and submit them in CFISnet.
7.
The technical Budget initiative proposal Cabinet paper is prepared by the Treasury,
and includes a large number of financial recommendations for every agreed technical
Budget initiative proposal.
8.
Recommendations can be drafted as soon as an initiative has been entered into
CFISnet. However, recommendations can only be output from CFISnet when the
initiative has been “agreed” following decisions by Ministers. These financial
recommendations are generated automatically from the recommendations that agencies
complete in CFISnet. Therefore financial recommendations must be correctly drafted.
9.
Any specific questions about technical issues or the wording of financial
recommendations should be directed to your Vote Analyst.  Further guidance on how to
enter financial recommendations into CFISnet is available on the CFISnet Help page
under ‘Baselines’ > ‘Recommendations’.
Significant Budget Initiatives
10.  The process for agencies completing financial recommendations for significant Budget
initiatives is similar to that described above.
11.  One distinction is where Budget Ministers agree to scale an agency’s Budget initiative.
In these cases, the Treasury will enter the recommended funding into CFISnet. This
will then allow agencies to generate financial recommendations that reconcile against
the agreed funding. This may include updating titles and descriptions to reflect final
funding decisions.

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BUDGET 2020 SIGNIFICANT INITIATIVES FINANCIAL RECOMMENDATIONS
CHIEF FINANCIAL OFFICER SIGN OFF

--------------------------------------------------------------
Vote

The Significant Financial Recommendations for the above Vote in CFISnet contain all decisions for
Cabinet consideration as part of the 2020 Budget package.

These have been completed in accordance with Financial Recommendations requirements as set out
in Treasury Circulars and guides.

Aspect
Check
(  /  )
All applicable recommendations have been included and reflect decisions taken by

Budget Ministers.
For Votes that are receiving new funding, the title and description clearly specifies

what the money is allowed to be spent on.
The title is spelt correctly and has the appropriate capitals (use capitals for all words

except for words such as ‘of’, ‘it’, ‘to’, etc).
The scope statement for any new appropriation/category begins with “This

appropriation/category is limited to ….”, and provides a clear legal boundary for the
appropriation/category.
Funding is going into the correct appropriations.

Any implications for baselines outside the forecast period (ie, in outyears) are clearly

documented in the recommendations.
Where initiatives relate to more than one Vote, departments have coordinated their

recommendations so that no information is missing or duplicated.
Additional “non-standard” tables required by departments have been provided to the

Treasury Vote Analyst.
Revenue type is correct (‘Revenue Other’ for third parties; ‘Revenue Department’

where another department purchases the good/service; or ‘Revenue Crown’, and the
GST implications are correct (ie, all financial recommendations should be GST
exclusive).
The impact statement is correct (“with a corresponding / no impact on the operating

balance / debt”).

-----------------------------------
---------------------------------
Name
Signature
Chief Financial Officer

-------------------------------------

Date

Please forward this document to your Vote team no later than 1pm on Tuesday 17 March.
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BUDGET 2020 TECHNICAL INITIATIVES FINANCIAL RECOMMENDATIONS
CHIEF FINANCIAL OFFICER SIGN OFF

--------------------------------------------------------------
Vote

The Technical financial recommendations for the above Vote in CFISnet contain all such
recommendations that need Cabinet consideration as part of the 2020 Budget package.

These have been completed in accordance with financial recommendations requirements as set out in
Treasury Circulars and guides.

Aspect
Check
(  /  )
All applicable recommendations have been included and reflect decisions taken by

Budget Ministers.
For Votes that are receiving new funding, the initiative title and description clearly

specifies what the money is allowed to be spent on.
The title is spelt correctly and has the appropriate capitals (use capitals for all words

except for words such as ‘of’, ‘it’, ‘to’, etc).
The scope statement for any new appropriation/category begins with “This

appropriation/category is limited to ….”, and provides a clear legal boundary for the
appropriation/category.
Funding is going into the correct appropriations.

Any implications for baselines outside the forecast period (ie, in outyears) are clearly

documented in the recommendations.
Where initiatives relate to more than one Vote, departments have coordinated their

recommendations so that no information is missing or duplicated.
Additional “non-standard” tables required by departments have been provided to the

Treasury Vote Analyst.
Revenue type is correct (‘Revenue Other’ for third parties; ‘Revenue Department’

where another department purchases the good/service; or ‘Revenue Crown’, and the
GST implications are correct (ie, all financial recommendations should be GST
exclusive).
The impact statement is correct (“with a corresponding / no impact on the operating

balance / debt”).

-----------------------------------
---------------------------------
Name
Signature
Chief Financial Officer

-------------------------------------

Date

Please forward this document to your Vote team no later than 1pm on Monday 2 March.
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Annex Three: Production of Estimates and
Supplementary Estimates
Overview for Estimates and Supplementary Estimates
1.
The Estimates and supporting information provide information to Parliament on the
appropriations the Government is seeking for the financial year through to the next
Budget and what those appropriations will be used for.
2.
The Supplementary Estimates and supporting information reflect changes to
appropriations since the Estimates were tabled in Parliament.
3.
Departments should read and be familiar with the detailed information and instructions
on the format and content changes to both the Estimates and Supplementary
Estimates which are available in the following documents:
Document
Content
Link
Estimates, Supplementary
Sets out the purpose and content
https://treasury.govt.nz/publicati
Estimates and their Supporting
requirements for the Estimates,
ons/guide/estimates-
Information: Technical Guide
Supplementary Estimates and their
supplementary-estimates-
for Departments
supporting information for Budget 2020
technical-guide-departments
Style Guide for Estimates and
Guidance on how to prepare accurate
https://treasury.govt.nz/publicati
Supplementary Estimates of
and consistent Estimates documents.
ons/guide/budget-style-guide-
Appropriations and Supporting
This includes the mock ups which were
estimates-supplementary-
Information
previously separate documents
estimates

Review of Estimates Documents by the Treasury
4.
Agencies are expected to be engaging with their Vote teams and their Ministers’ Office
throughout the process to ensure all feedback is taken on board and issues resolved
promptly.
5.
The Treasury will do an initial review of the Estimates and Supplementary Estimates
documents based on what is in CFISnet. These documents should be as ‘near final’ as
possible, as this review provides opportunity for agencies to receive early feedback for
improvement (or omissions) before their Minister formally signs-off the documents. The
focus of this initial feedback is primarily on the statements, explanations and structure
of these drafts and common problems; at this stage it is not a comprehensive proof-
read or review of the numbers.
Sign-off of Estimates Documents by Ministers
6.
Agency Chief Executives are responsible to the Minister(s) for the quality and accuracy
of the Budget documents prepared by their departments (ie, Estimates and
Supplementary Estimates). This includes factual accuracy (eg, output classes are
correctly specified) and technical accuracy (eg, the numbers include all the decisions
made to date, and they reconcile).
7.
Ministers responsible for appropriations in a Vote must provide a sign off to the Minister
of Finance that the Estimates and Supplementary Estimates documents are accurate
and ready for publishing. The Treasury can then compile them directly from CFISnet for
printing, after Cabinet has taken decisions on the Budget. The relevant sign-off sheets
are below.
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8.
Each Estimates and Supplementary Estimates sign-off sheet should be for one Vote.
Where a Vote has more than one portfolio Minister responsible for different
appropriations, the sign-off should be from one of those appropriation Ministers on
behalf of all the Ministers responsible for these appropriations.
9.
It is the agency’s responsibility to ensure that their Minister, or another Minister with
authority to approve the documents, is available to sign off all of the Estimates and
Supplementary Estimates documents on or before the relevant deadlines. Please
confirm with your Treasury Vote team when the Vote Minister has signed-off on the
documents.
10.  Please note that the version number of the Estimates and Supplementary Estimates
that your Vote Minister signs off must be the same as the final version number of the
Estimates and Supplementary Estimates submitted through CFISnet.
11.  Ministers should also be seeking assurance from Chief Executives that the material
being submitted is accurate and ready for forwarding to the Minister of Finance.
Similarly, Chief Executives will be seeking similar assurances from the person within
their agency responsible for preparing the agency’s Estimates documents.

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Annex Four: Appropriation Bills (Estimates and
Supplementary Estimates)
1.
All changes to appropriations agreed by Cabinet through the Budget must, by law, be
agreed by Parliament in an Appropriation Act.
2.
The Treasury, in conjunction with the Parliamentary Counsel Office, will compile the
2020/21 Estimates Appropriation Bill and the 2019/20 Supplementary Estimates
Appropriation Bill after Cabinet has agreed to a final Budget package and after all
agencies have loaded their Estimates documents into CFISnet.
3.
It is very important that all Estimates numbers loaded into CFISnet are correct as these
are the numbers that will be used to compile the legislation that will be introduced into
Parliament. Once the legislation is finalised and introduced, changes are virtually
impossible.  It is important that the numbers receive adequate QA from departments,
including checking actual outturns for the current financial year with the numbers for
the current financial year in the Supplementary Estimates.
Ministers Reporting Against Appropriations
4.
Section 15C of the PFA requires performance reporting for all departmental and non-
departmental appropriations (excluding those for borrowing expenses and security and
intelligence agencies) at year-end unless specifically exempted by the Minister of Finance.
5.
The Estimates documents identify who reports against each appropriation and in which
document.
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Supplementary Estimates Chief Executive Sign Off
Template– Departmental certification letter to an appropriation Minister(s) for a Vote

[Date]

Hon Grant Robertson
Minister of Finance
Parliament Buildings
WELLINGTON

Dear Minister
2019/20 Supplementary Estimates Documents for Vote: [Vote name]
Action Required

Attached, for your approval are:
•  the documentation for the 2019/20 Supplementary Estimates and Supporting
Information for [where there is more than one appropriation Minister, insert: “the
appropriations that you are responsible for in”] [Vote name], and
•  a draft letter to the Minister of Finance.
Background

The Budget 2020 process requires that:
•  the Supplementary Estimates documentation for [Vote] is completed by [date], and

Either – when only one appropriation Minister is responsible for all of the
appropriations in the Vote, the following bullet should then be included:
•  “as the appropriation Minister for all of the appropriations in the Vote, you
confirm to the Minister of Finance that this material is correct and in a form
suitable for publication.”
Or – when there is more than one appropriation Minister responsible for
appropriations in the Vote, the following bullet should then be included:
•  “one of the appropriation Ministers responsible for appropriations in the Vote,
on behalf of all appropriation Ministers with appropriations in the Vote, confirm
to the Minister of Finance that this material is correct and in a form suitable
for publication.”

The Supplementary Estimates and Supporting Information Documents

I confirm that the information provided for your approval:
•  is consistent with the policies and performance expectations of the Government, and
has been prepared in accordance with the Public Finance Act 1989
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•  is consistent with the proposed appropriations to be set out in the Appropriation
(2020/21 Estimates) Bill, as entered by [department] into the Treasury’s CFISnet
system
•  is consistent with existing appropriations, financial authorities, and Cabinet decisions
up to [date]
•  has been prepared in the required format, and in accordance with the guidance that
has been issued by the Treasury
•  has been appropriately reviewed by [department’s] senior management team – with a
particular focus on areas where new strategic information, such as statements about
what an appropriation is intended to achieve, is now required, and
•  has been through an appropriate quality assurance process and is free of material
errors and omissions.
Either – when only one appropriation Minister is responsible for all of the appropriations
in the Vote, the following bullet should then be included:
“The Budget process requires that you review the Estimates documentation, and then
confirm to the Minister of Finance that it is fit for publication.”
Or – when there is more than one appropriation Minister responsible for appropriations
in the Vote, the following bullet should then be included:
“As detailed below there are several appropriation Ministers associated with [Vote]:
•  Minister –list of appropriations
•  Minister –list of appropriations
•  Minister –list of appropriations
[...]
The Budget process requires that all appropriation Ministers review the Estimates
documentation. One appropriation Minister, on behalf of all appropriation Ministers
associated with the Vote, should then confirm to the Minister of Finance that the
Estimates documentation for the Vote is fit for publication.”

“I understand the Ministers responsible for appropriations in [Vote name] have agreed
that the Minister of/for [portfolio] will sign the attached letter to the Minister of Finance,
on behalf of all appropriation Ministers. Accordingly, I recommend that once
appropriation Ministers are comfortable with the material for the appropriations that
they are responsible for, the Minister of/for [portfolio] sign the attached letter to the
Minister of Finance.”

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Recommendation
Either – when only one appropriation Minister is responsible for all of the appropriations
in the Vote, the following recommendation should then be included:
“I recommend that you sign the attached letter to the Minister of Finance”
Or – when there is more than one appropriation Minister responsible for appropriations
in the Vote, the following recommendation should instead  be included:
“I recommend that you agree with the other appropriation Ministers associated with
the Vote which Minister will sign the attached letter to the Minister of Finance.”

Yours sincerely

[Chief Executive Signature]
[Chief Executive Title]

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Estimates Chief Executive Sign Off
Template– Departmental certification letter to an appropriation Minister(s) for a Vote

[Date]

Hon Grant Robertson
Minister of Finance
Parliament Buildings
WELLINGTON

Dear Minister
2020/21 Estimates Documents for Vote: [Vote name]
Action Required

Attached, for your approval are:
•  the documentation for the 2020/21 Estimates and Supporting Information for [where
there is more than one appropriation Minister, insert: “the appropriations that you are
responsible for in”] [Vote name], and
•  a draft letter to the Minister of Finance.
Background

The Budget 2020 process requires that:
•  the Estimates documentation for [Vote] is completed by [insert appropriate date
outlined on page 8], and
Either – when only one appropriation Minister is responsible for all of the
appropriations in the vote, the following bullet should then be included:
•  “as the appropriation Minister for all of the appropriations in the Vote, you
confirm to the Minister of Finance that this material is correct and in a form
suitable for publication.”
Or – when there is more than one appropriation Minister responsible for
appropriations in the Vote, the following bullet should then be included:
•  “one of the appropriation Ministers responsible for appropriations in the Vote, on
behalf of all appropriation Ministers with appropriations in the Vote, confirm to
the Minister of Finance that this material is correct and in a form suitable for
publication.”

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The Estimates and Supporting Information Documents
I confirm that the information provided for your approval:
•  is consistent with the policies and performance expectations of the government, and
has been prepared in accordance with the Public Finance Act 1989
•  is consistent with the proposed appropriations to be set out in the Appropriation
(2020/21 Estimates) Bill, as entered by [department] into the Treasury’s CFISnet
system
•  is consistent with existing appropriations, financial authorities, and Cabinet decisions
up to [date]
•  has been prepared in the required format, and in accordance with the guidance that
has been issued by the Treasury
•  has been appropriately reviewed by [department’s] senior management team – with a
particular focus on areas where new strategic information, such as statements about
what an appropriation is intended to achieve, is now required, and
•  has been through an appropriate quality assurance process and is free of material
errors and omissions.
Either – when only one appropriation Minister is responsible for all of the appropriations
in the Vote, the following bullet should then be included:
“The Budget process requires that you review the Estimates documentation, and then
confirm to the Minister of Finance that it is fit for publication.”
Or – when there is more than one appropriation Minister responsible for appropriations
in the Vote, the following bullet should then be included:
“As detailed below there are several appropriation Ministers associated with [vote]:
•  Minister –list of appropriations
•  Minister –list of appropriations
•  Minister –list of appropriations
[...]
The Budget process requires that all appropriation Ministers review the Estimates
documentation. One appropriation Minister, on behalf of all appropriation Ministers
associated with the Vote, should then confirm to the Minister of Finance that the
Estimates documentation for the Vote is fit for publication.”

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“I understand the Ministers responsible for appropriations in [Vote name] have agreed
that the Minister of/for [portfolio] will sign the attached letter to the Minister of Finance,
on behalf of all appropriation Ministers. Accordingly, I recommend that once
appropriation Ministers are comfortable with the material for the appropriations that
they are responsible for, the Minister of/for [portfolio] sign the attached letter to the
Minister of Finance.”

Recommendation
Either – when only one appropriation Minister is responsible for all of the appropriations
in the Vote, the following recommendation should then be included:
“I recommend that you sign the attached letter to the Minister of Finance”
Or – when there is more than one appropriation Minister responsible for appropriations
in the Vote, the following recommendation should instead  be included:
“I recommend that you agree with the other appropriation Ministers associated with
the Vote which Minister will sign the attached letter to the Minister of Finance.”

Yours sincerely

[Chief Executive Signature]
[Chief Executive Title]

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Estimates Ministerial Sign Off
Template – Ministerial certification to the Minister of Finance for a vote

[DATE]

Hon Grant Robertson
Minister of Finance
Parliament Buildings
WELLINGTON

Dear Minister
2020/21 Estimates: Ministerial Sign-off for Vote [Vote]
I advise that the Estimates of Appropriation 2020/21 and Supporting Information documents
for  [Vote], for which [name of department]  is the administering department, have been
completed – and that it is accurate and suitable for publication. I confirm that the information
provided:
•  is consistent with the policies and performance expectations of the government, and
has been prepared in accordance with the Public Finance Act 1989
•  is consistent with the proposed appropriations to be set out in the Appropriation
(2020/21 Estimates) Bill, existing appropriations and financial authorities, and with
Cabinet decisions up to [date]
•  is provided in the required format, and has been prepared in accordance with the
guidance that has been issued by the Treasury, and
•  has been through an appropriate quality assurance process and is free of material
errors and omissions.
[Where more than one portfolio Minister is responsible for different appropriations in the Vote
the following bullet should also be added: “has, where it relates to an appropriation that is the
responsibility of another Minister, been approved by the Minister responsible for that
appropriation”]
In signing this statement, I acknowledge that I [and the other Ministers responsible for
appropriations in this Vote] [am/are] responsible for the information for Vote [name]
administered by [department’s name] included in the Estimates of Appropriations 2020/21 and
Supporting Information.

Yours sincerely

[Signature]

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Signature
The signature should be either:
(i)
Where the signing Minister is solely responsible for all of the appropriations
contained in the Vote
“Hon [Name]
Minister of/for [portfolio]”
(ii)
Or, where more than one portfolio Minister is responsible for different
appropriations in the Vote
“Hon [Name]
Minister of/for [portfolio]
On behalf of all Ministers responsible for appropriations in Vote [Vote name]”.

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Supplementary Estimates Ministerial Sign Off
Template – Ministerial certification to the Minister of Finance for a vote

[DATE]

Hon Grant Robertson
Minister of Finance
Parliament Buildings
WELLINGTON

Dear Minister
2019/20 Supplementary Estimates: Ministerial Sign-off for Vote [Vote]
I advise that the Supplementary  Estimates of Appropriation 2019/20  and Supporting
Information  documents for  [Vote], for which [name of department]  is the administering
department, have been completed  –  and that it is accurate and suitable for publication. I
confirm that the information provided:

•  is consistent with the policies and performance expectations of the government, and
has been prepared in accordance with the Public Finance Act 1989
•  is consistent with the proposed appropriations to be set out in the Appropriation
(2019/20 Supplementary Estimates) Bill, existing appropriations and financial
authorities, and with Cabinet decisions up to [date]
•  is provided in the required format, and has been prepared in accordance with the
guidance that has been issued by the Treasury, and
•  has been through an appropriate quality assurance process and is free of material
errors and omissions.
[Where more than one portfolio Minister is responsible for different appropriations in the Vote
the following bullet should also be added: “has, where it relates to an appropriation that is the
responsibility of another Minister, been approved by the Minister responsible for that
appropriation”]
In signing this statement, I acknowledge that I [and the other Ministers responsible for
appropriations in this Vote] [am/are] responsible for the information for Vote [name]
administered by [department’s name] included in the Supplementary Estimates of
Appropriations 2019/20 and Supporting Information.

Yours sincerely

[Signature]

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Signature
The signature should be either:
(i)
Where the signing Minister is solely responsible for all of the appropriations
contained in the Vote
“Hon [Name]
Minister of/for [portfolio]”
(ii)
Or, where more than one portfolio Minister is responsible for different
appropriations in the Vote
“Hon [Name]
Minister of/for [portfolio]
On behalf of all Ministers responsible for appropriations in Vote [Vote name]””.

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Baseline Updates: Guidance for
departments

This Guidance covers the following:

Overview of the Baseline Updates ................................................................................ 2
Baseline Update process overview ............................................................................... 3
Updating CFISnet to reflect Cabinet decisions .............................................................. 4
Financial changes to baselines that can be agreed under CO(18)2 .............................. 5
ANNEX 1: Baseline Update Template ......................................................................... 10

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Overview of the Baseline Updates (BU)

1.
There are two baseline updates during the fiscal year:

a.
The October Baseline Update (OBU), and

b.
The March Baseline Update (MBU).

2.
Baseline updates provide an opportunity for departments to:

a. Seek
Joint
Ministers1 agreement to:

i.
changes to baselines that Joint Ministers are able to approve under
CO(18)2 and update CFISnet to reflect the agreed changes

ii.
Confirm in-principle expense and capital transfers agreed at MBU or
agreed before the end of the previous financial year and

iii.
At OBU, adjust the future spending profile of multi-year appropriations
to ensure the remaining profile of each MYA reflects the difference
between the total amount of the MYA and the total actual expenditure
to the end of the previous year.

b.
Update CFISnet to reflect Cabinet decisions and other Joint Ministers’
decisions affecting baselines that have been made since the Budget

c.
Request their appropriation Minister seek the Minister of Finance’s
agreement to:

i.
Performance reporting exemptions, and

ii.
The establishment of Multi-Category Appropriations (MCAs).

3.
Ahead of each baseline update, timelines are uploaded to CFISnet and released
to departments.

4.
Baseline updates are technical updates, with their contents designed to require
no review by Cabinet. Any changes that require Cabinet approval should be
considered separately. Departments should discuss the appropriate approach
with their Treasury Vote Analyst.

5.
Departments should also discuss any potentially contentious changes with their
Treasury Vote team as early as possible, so these can be resolved in advance of
the appropriation Minister’s submission for the baseline update.

1 The Minister of Finance and the appropriation Minister
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6.
Any disagreements regarding changes should be resolved, if possible, between
the department and the Treasury Vote Team before Joint Ministers agreement is
sought. Where disputes can be resolved, CFISnet should be updated to reflect
the agreed position. Where disputes cannot be resolved, the disputed items are
to be removed from CFISnet and deferred to the next Budget process.

Baseline Update Process overview

Coredata Changes

7.
Coredata changes are required for all new appropriations agreed to by Cabinet
and to amend existing details such as title, scope and the Minister responsible for
the appropriation. Normally, titles and scopes should not be amended during a
financial year. To allow departments to enter information against the new
appropriations in CFISnet a line is created by Treasury to accept the data. Until a
new line is created, no data can be stored against the appropriations.

Appropriation Minister Submission

8.
Appropriation Ministers are to submit two hard copies of their Baseline Update
requests to the Minister of Finance.

9.
The format for appropriation Ministers’ submissions is attached as Annex 1 to this
Guidance. A word version of the template is available on CFISnet in the Treasury
Circulars section. The submission to the Minister of Finance should be
accompanied by the following Tables from CFISnet (CFISnet menu: Baselines 
Vote Changes):

•
Table 1: Summary Table of Baseline Numbers

•
Table 2: Baseline Changes Report

10.  Proposed changes should be explained in the appropriation Minister’s
submission as follows:

Change type
Explanation to be contained in
appropriation Minister Submission
Fiscally neutral adjustments (FNAs) between
One short paragraph for each change that
appropriations
shows why an FNA is proposed.
Expense or Capital transfers between
One short paragraph for each change that
financial years
explains the factors outside of the agency’s
control that require project or programme
funds to be moved into a subsequent year.
Retention of underspends (RoUs) from one
One short paragraph for each change that
financial year to the next (MBU only)
proves that underspends are a result of
savings made through gains in efficiency or
other savings initiatives.
Front-loading of spending
One short paragraph for each change that
explains why funding will be required in an
earlier financial year.
Technical adjustments to appropriation titles
One short paragraph explaining each
and descriptions
change.
Forecast changes
One short paragraph outlining the key
factors/drivers in the forecast change.
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11.  To assist in subsequent analysis of changes, the explanations should include a
clear description of the drivers of change and, where there are multiple changes
affecting an appropriation, present each individual change rather than
aggregating multiple changes.

12.  Updates to CFISnet to reflect Cabinet decisions or Joint Ministers’ decisions do
not require an explanation, but the relevant Cabinet Minute or Joint Ministers’
decision reference must be recorded in the “authority for change” field of the
Table 2 attachment.

13.  Appropriation Ministers will also be asked to certify that none of the proposed
changes requires a Cabinet decision.

Treasury Assessment

14.  As the focus of the Baseline Update is to action a variety of technical changes, it
is not expected that substantive policy discussions will be required. However,
Treasury Vote teams will still check submissions for such implications. The other
area of focus in the Treasury assessment will be whether the submission meets
the guidelines for changes to baselines as set out in Cabinet Office Circular CO
(18) 2, including whether Joint Ministers have delegated authority to approve the
proposed change.

Notification of Outcome

15.  Updated baselines will be confirmed via a letter from the Minister of Finance to
the appropriation Minister. The letter will confirm all agreed changes, any
disputed items that have been resolved following submission, and list any
disputed changes to be addressed in Budget or through other Cabinet processes.

Updating CFISnet to reflect Cabinet decisions

16.  The Baseline Update process also allows for the updating of CFISnet to reflect
the outcomes of Cabinet decisions that affect baselines, made since the previous
Baseline Update or Budget update. This includes decisions by Joint Ministers
made under delegation from Cabinet.

Cabinet policy decisions

17.  All updates entered into CFISnet to reflect the outcome of a Cabinet decision
(including decisions made by Joint Ministers under delegation from Cabinet) must
include the classification “Cabinet Policy Decision” and include the Cabinet
Minute reference as an authority. Where applicable, the joint Ministerial letter
reference should also be included, if Joint Ministers have made the decision
under delegation from Cabinet.

18.  When using the classification “Cabinet Policy Decision” to update CFISnet to
reflect the outcome of a Cabinet decision, a “contingency category” must also be
selected to identify the source of funding that the Cabinet policy decision impacts.

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Financial changes to baselines that can be agreed under CO(18)2
19.  The Baseline Update process allows for timely updating of baselines prior to the
production of the Budget (in the case of MBU) and ahead of the Half-Year
Economic and Fiscal Updates (in the case of OBU). The criteria under which
Joint Ministers can approve changes with financial implications are set out in the
Cabinet Office Circular CO (18) 2, ‘Proposals with Financial Implications and
Financial Authorities’ and can be accessed at:
https://www.dpmc.govt.nz/publications/co-18-2-proposals-financial-implications-
and-financial-authorities

20.  Baseline updates or forecasting adjustments unable to be agreed by Joint
Ministers during the Baseline Update because they fall outside the criteria set in
CO (18) 2 may be considered as part of the Budget or through a separate
Cabinet process, if they are consistent with Government priorities.

21.  Departments can discuss these particular cases with their Vote Analyst. Changes
that cannot be agreed under CO (18) 2, including those that require additional
funding, should be considered as part of the Budget process. They may be able
to be considered alongside the financial recommendations in the Budget Cabinet
paper. Any changes that cannot be agreed under CO (18) 2 will be recorded in
the Minister of Finance’s response letter to appropriation Ministers.

22.  When preparing Baseline Update submissions, it is important that departments:

a.
Pay close attention to the correct classification of any Vote changes sought
as part of the baseline update, as this information is directly used in the
production of the Crown’s fiscal forecasts.

b.
If seeking FNAs between Votes, specify all other Votes affected by the FNA
in the description of the FNA to enable cross-checking by Treasury Vote
teams.

c.
Note that Expense Transfers will be approved only where agencies prove
that a factor outside of their control is the primary cause of delay.

d.
Note that Retention of Underspends will be approved only where agencies
prove that underspends remain as a result of savings made through gains
in efficiency or other savings initiatives.

e.
Note that forecast adjustments should reflect a best estimate prepared on
the basis of best professional judgement reflecting information and
circumstances at the date they are prepared.

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Expense and Capital Transfers - Approval in principle and confirmation of approvals in
principle

23.  In-principle Expense and Capital Transfers (IPECTs) may be sought where the
final amount to be transferred cannot be finalised until after the due date for MBU
submissions (i.e. amounts will only be known when accounts are audited).
IPECTs should be included in your Minister’s letter, but not as a vote change in
CFISnet.

24.  In order for the fiscal forecasts to be as accurate as possible, and as noted in CO
(18) 2, Ministers should limit the scope of IPECTs as much as possible. This
means that they should transfer the proportion of funding they are sure of and
only use an in-principle transfer for the remainder. When updating forecast
information (common schedules beginning with a “1”), departments should use
their best estimate of the actual spending patterns. Appropriations and funding
limits should be separated from Revenue and Expense forecasts using the
reconciliation schedules (1:53:0, 1:53:1 and 1:73:0).

25.  Departments are encouraged to seek Expense and Capital Transfers at the MBU
if required. There is also an opportunity to seek transfers between Budget Day
and before the end of the financial year, in June. Further information can be
provided as necessary by Vote Analysts.

26.  IPECTs do not constitute sufficient authority to incur expenses until the actual
quantum is confirmed and agreed by Joint Ministers, normally in the following
OBU. The level of parliamentary financial authority is monitored on a monthly
basis by the Controller and Auditor General. Any expenditure incurred without
authority (in this case, any expenditure incurred in relation to these transfers prior
to obtaining confirmation of the quantum of transfer, up to the level earlier
approved in principle) will be reported as unappropriated and will require
validation by Parliament. For more information see Treasury Circular 2012/03
Unappropriated Expenditure - Avoiding Unintended Breaches.

27.  Please note, confirmations of in-principle transfers are limited by the amount of
the previous year’s appropriation that remained unspent, as well as the revenue
associated with any output.

Departmental Capital Injection Transfers and Cabinet Approved Departmental Capital
Injections

28.  Departmental capital injections require Parliamentary authorisation.  Departments
still need to apply the criteria and process stipulated in CO (18) 2 for transferring
departmental capital injections between financial years, as such changes alter
the year for which Parliamentary authorisation of the capital injection is required.

29.  Specific lines for Departmental Net Assets are contained in CFISnet schedule
0:9:0, and explanations of movements to these lines are reported in Table 2.
CFISnet validation rules ensure consistency between the 0:9:0 schedule and
Taxpayers’ Funds reported in the Statement of Financial Position.

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30.  Other changes that affect departmental net assets but do not require Joint
Ministerial or Cabinet approval at this stage can be reflected in departments’
updated financial statements submitted via CFISnet. Such changes may
encompass capital withdrawals, revaluations and revisions of surpluses or
deficits. They do not need to be identified in the appropriation Minister’s
submission.

Retention of Underspends (RoUs)

31.  Underspends are defined as funding remaining at the end of the financial year as
a result of:

•
savings made through gains in efficiency; and/or

•
other savings initiatives, where the output or service has been delivered in
full. In contrast, an expense and capital transfer can be used when the
output or service has not been fully delivered due to circumstances outside
the department's control.

32.  Underspends do not include, for example, funding left over as a result of lower-
than-expected demand for a service, or because the amount required was
originally over-estimated.

33.  Joint Ministers can approve the retention of underspends within departmental
expense appropriations. This funding can then be transferred to the next financial
year, and also transferred to any other departmental appropriations.

34.  Where approval to retain underspends is sought before or in the MBU, the full
amount can be retained. Underspends must be confirmed during the MBU by
showing a decrease in the current year’s Supplementary Estimates and a
corresponding increase in the following year's Estimates.

35.  Where approval to retain underspends is sought after the MBU but before 30
June, half of the amount can be retained. Underspends must be confirmed on the
basis of the audited financial results for the financial year in which underspends
occurred, and the increase reflected in the following year's Supplementary
Estimates. Note that this has similar reporting treatment in the Estimates and
Supplementary Estimates as in-principle expense and capital transfers.

36.  Any proposal to retain underspends made after 30 June will be declined.

37.  Proposals to retain underspends must:

•
explain how underspends arose (as per paragraph 54 in CO (18) 2)

•
explain what the transferred funding will be used for, and why it should be
retained rather than returned to the centre, and

•
prove that underspends remain as a result of savings made through gains
in efficiency or other savings initiatives.

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Front-loading of spending (FLoS)

38.  Front-loading of spending can be used to bring forward funding in any
departmental expense appropriation within the forecast period for specific
investments or projects that will permanently and sustainably reduce spending in
outyears.

39.  Proposals to front-load spending must explain:

•
how the investment or project will permanently and sustainably reduce
expenditure in out-years

•
any risks that the proposal will not deliver the expected savings, and how
these can be mitigated, and

•
what other funding options were considered, and why the front-loading of
spending is the preferred option.

40.  The amount of detail required for any proposal to front-load spending is
proportional to the amount requested. Proposals to front-load significant amounts
of funding may need to be submitted to Cabinet, according to the criteria in
paragraph 9 of CO (18) 2.

Forecasting changes

41.  CO (18) 2 describes the process around forecast changes in more detail. Not all
forecast changes are agreed automatically, and departments should consider
whether it is appropriate to absorb the cost changes from these within baselines.
The circumstances outlining whether forecasting changes should be met from
within baselines are described in CO (18) 2.

Requesting retention of surpluses

42.  Section 22(1) of the Public Finance Act 1989 states that “Except as agreed
between the Minister [of Finance] and the responsible Minister for a department,
the department must not retain any operating surplus that results from its
activities.”

43.  Section 4.4.3 of the Treasury Instructions 2018 sets out the methodology for
calculation of surpluses and states that requests to retain surpluses should be
sought from the responsible Minister and forwarded to the Minister of Finance as
soon as the amount to be retained is known. Requests are to be made no later
than two months after the end of the financial year (i.e. 31 August).

44.  It is therefore not necessary to request retention of surplus during a Baseline
Update, but departments are requested to make a request as soon as the
amount is known.

45.  Departments seeking approval to retain surpluses need to explain why this
approach is more appropriate than seeking a capital injection.

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Other changes that can be agreed by the Minister of Finance

46.  The Minister of Finance can agree exemptions to performance reporting
requirements and the establishment of multi-category appropriations.

Exemptions from end-of-year performance reporting

47.  The criteria under which the Minister of Finance will approve exemptions from
end-of-year performance information requirements for certain categories of
expenses and capital expenditure are set out in Section 15D of the Public
Finance Act 1989.

Establishing multi-category appropriations

48.  Requirements for the establishment of a multi-category appropriation are set out
in Section 7B of the Public Finance Act 1989. A multi-category appropriation must
be approved by the Minister and must include only categories of expenses or
non-departmental capital expenditure that contribute to a single stated
overarching purpose.

Updating the remaining profiles of multi-year appropriations (MYAs)

49.  At OBU, Departments are also required to adjust the future spending profile of
MYAs in CFISnet.  By OBU, the previous year’s actuals are finalised, so the
difference between actuals and the prior forecast of these actuals needs to be
reflected in the future profile of all MYAs.

50.  The future spending profile of an MYA needs to sum to the total amount of the
MYA minus what has actually been spent in the previous year(s). There will
usually be a considerable difference between the forecast amount and actual
amount, given MYAs are intended to provide flexibility in the timing of
expenditure.  If the changes are not made, then the total amount of the MYA will
be incorrectly recorded in CFISnet and result in unauthorised changes to the
appropriation. The Treasury Controller will need to report these unauthorised
changes to Audit New Zealand

51.  The CFISnet document: “CFISnet Guide to Multi-Year Appropriations” contains
detailed guidance for adjusting MYAs at OBU from pages 20-27. This document
can be downloaded from CFISnet using the link under the Quick Links section of
the CFISnet Home page.”

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UNCLASSIFIED
ANNEX 1: [MARCH/OCTOBER] BASELINE UPDATE TEMPLATE
FOR APPROPRIATION MINISTER SUBMISSION

[DATE]

Hon [Insert Name]
Minister of Finance
Parliament Buildings
WELLINGTON

[Current calendar year] [March/October] Baseline Update

Submission for Vote XXX

Introduction

This report covers those items affecting the baseline for Vote <XXX> for the
[March/October] Baseline Update.

I confirm that none of the changes contained in this update require Cabinet decisions at
this time.

The proposed changes to baselines are as follows:

Changes requiring approval of Joint Ministers [use where applicable]
Expense or Capital Transfers [use where applicable]

An explanation of each proposed transfer is listed below, and the amounts are
specified in Table 2 attached to this letter.

Title of expense or capital transfer or title of in-principle expense or capital
transfer [repeat as necessary]
<A paragraph description of the expense or capital transfer or IPECT that clearly
demonstrates how the need to shift the baseline funding is outside the agency’s
control, as outlined in CO (18)2>

Fiscally Neutral Adjustments [use where applicable]
An explanation of each proposed adjustment is listed below, and the amounts are
specified in Table 2 attached to this letter.

Title of fiscally neutral adjustment [repeat as necessary]
<A paragraph description of the FNA in accordance with the guidance outlined in
paragraphs 30-36 of CO (18)2>

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Retention of Underspends [use where applicable]
An explanation of each proposed retention of underspend is listed below, and the
amounts are specified in Table 2 attached to this letter.

Title of retention of underspends [repeat as necessary]
<A paragraph description of the RoU that clearly demonstrates that the underspend is
a result of savings made by the department through gains in efficiency, or other
savings initiatives, as outlined in outlined in paragraphs 47-54 of CO(18)2 >

Front-loading of Spending [use where applicable]
An explanation of each proposed front-loading of spending is listed below, and the
amounts are specified in Table 2 attached to this letter.

Title of front-loading of spending [repeat as necessary]
<A paragraph description of the FLoS as per paragraphs 55-58 of CO (18)2>

Forecasting Adjustments [optional for most departments - use where applicable]
An explanation of each proposed forecasting adjustment is listed below, and the
amounts are specified in Table 2 attached to this letter.

Title of forecast change [repeat as necessary]
<A paragraph description of the amount of the change, and the main reasons behind
the change. Refer to paragraphs 61-62 of CO (18)2>

Other Technical Changes [use where applicable]
An explanation of each proposed technical change is listed below, and the amounts are
specified in Table 2 attached to this letter.

Title of technical change [repeat as necessary]
<A paragraph description of the amount of the change, and the main reasons behind
the change>

Retention of surplus [use where applicable]
I am seeking approval to [Department Name] retaining the surplus as follows:

<Specify details of surplus to be retained and reason why surplus should be retained
rather than seeking a capital injection>

Other Matters requiring Minister of Finance agreement [use where
applicable]

Request for performance reporting exemptions for [current financial year]
onwards for Vote <XXXX> [use where applicable]

I am seeking your approval for the exemption from end-of-year performance reporting
for those appropriations and categories of MCA listed in the Annex.  The Annex
provides reasons for why these exemptions are sought. Any exemptions and the
reason for the exemption are disclosed in the Estimates.   For those appropriations
subject to Budget decisions, your approval would be subject to the reason for granting
the exemption still being applicable once these decisions are taken.

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UNCLASSIFIED
Establishing multi-category appropriations [use where applicable]
I am seeking your approval to create the multi-category appropriations and/or add new
categories to existing multi-category appropriations, as set out in the Annex.
Recommendations
This section is for Joint Ministers to agree, subject to CO (18) 2.

I recommend that you:
<recommendations 1 and 2 are standard recommendations that should be included.>

1.
agree the changes to relevant baselines as set out in Table 2;

2.
agree  that the proposed changes to appropriations and departmental capital
injections for [current financial year], covered by recommendation one above, be
included in the [current financial year] Supplementary Estimates and that, in the
interim, the increases be met from Imprest Supply.

3.
agree to the retention of surpluses set out above. [Delete as appropriate]

4.
agree  that the proposed retention of surpluses for [current financial year] as
covered by recommendation <X> above be included in the [current financial year]
Supplementary Estimates. [Delete as appropriate]

This section is for other changes that only require Minister of Finance agreement:
[Delete as appropriate]

I recommend that you:

5.
agree  the exemption from end-of-year performance reporting for those
appropriations and categories of MCAs listed in Annex A.

6.
agree the establishment of new multi-category appropriation(s) and/or the
addition of categories to existing MCAs listed in Annex B.

Signed
Minister of/for [XXXX]
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Annex A:

Proposed exemptions from end-of-year performance reporting [delete tables or
expand rows as necessary]

Criterion 1: An exemption is sought on the basis that the appropriation or category of
departmental output expenses relates exclusively to outputs supplied by a department
to one or more other departments

Vote Appropriation/
An exemption is sought  [current
category title
under S.15D(1) of the  financial year]
PFA as the outputs for  ($000)
this appropriation are
provided exclusively to...

Criterion 2:
a)  The appropriation or category of appropriation or category of non-departmental
expenses or non-departmental capital expenditure is one from which resources will
be provided to a person or entity other than a department, a departmental agency,
an office of Parliament, or a Crown entity; and

b)  an exemption is sought on the basis that key performance information relevant to
the appropriation or category will be otherwise readily available to the House of
Representatives

Vote Appropriation/
An exemption is sought  [current financial
category title
under S.15D(2)(b)(i) of  year] ($000)
the PFA as the
performance information
for this appropriation is
available to the House of
Representatives in...

Criterion 3:
a)  The appropriation or category of appropriation or category of non-departmental
expenses or non-departmental capital expenditure is one from which resources will
be provided to a person or entity other than a department, a departmental agency,
an office of Parliament, or a Crown entity; and

b)  an exemption is sought on the basis that end-of-year performance information for
the appropriation or category is not likely to be informative

Vote Appropriation/
An exemption is sought  [current financial
category title
under S.15D(b)(ii) of the  year] ($000)
PFA as additional
performance information
is unlikely to be
informative because...

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Criterion 4:
a)  The appropriation or category of appropriation or category of non-departmental
expenses or non-departmental capital expenditure is one from which resources will
be provided to a person or entity other than a department, a departmental agency,
an office of Parliament, or a Crown entity; and

b)  An exemption is sought for the following appropriation(s) under S.15D(b)(iii) of the
PFA as the amount (or annual average equivalent) of each of these non-
departmental expense appropriations is less than $5 million

Vote Appropriation/
[current financial year] ($0)
category title

Criterion 5:
a)  The appropriation or category of appropriation or category of non-departmental
expenses or non-departmental capital expenditure is one from which resources will
be provided to a person or entity other than a department, a departmental agency,
an office of Parliament, or a Crown entity; and

b)  An exemption is sought for the following appropriation(s) under S.15D(b)(iii) of the
PFA as the amount (or annual average equivalent) of each of these non-
departmental capital expenditure appropriations is less than $15 million

Vote Appropriation/  [current financial year] ($000)
category title

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Annex B:

New Multi-Category Appropriations (B1) and/or New Categories to existing Multi-Category Appropriations (B2)

B1: Proposed New Multi-Category Appropriations
[Note: delete or add rows where necessary e.g. less than or more than 3 categories]

[Add a new table for each new MCA to be established – add or remove categories as required.  Minimum of two categories.]

Proposed New Multi-Category Appropriation (MCA)
Overarching purpose statement
Vote Name
Department Name
Minister of/for Portfolio
MCA Title

Category Type
Category Title
Category Scope

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UNCLASSIFIED
B2: Proposed New Categories to Existing Multi-Category Appropriations
[Note: delete or add rows where necessary e.g. less than or more than 3 categories]

[Add a new table with details of the existing MCA to have categories added, then add details for each additional category]

Additional category/ categories to be added to existing Multi-Category Appropriation (MCA)
Existing Overarching purpose
Vote Name
Department Name
Minister of/for Portfolio
Existing MCA Title
statement

Additional Category
Additional Category Title
Additional Category Scope
Type

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IN-CONFIDENCE

24 September 2019

Treasury Circular 2019/10

Restricted Distribution

Chief Executives
Chief Financial Officers

Contact for Enquiries:

Budget process queries:
Your Treasury Vote Analyst

CFISnet entry queries:
s9(2)(k)

BUDGET 2020: REQUIREMENTS AND TIMELINE FOR BUDGET 2020 INITIATIVES

1.
This circular covers guidance for Budget 2020 initiatives. The final submission date
for cost pressure initiatives is 1 November 2019.  The final submission date for new
spending initiatives is 29 November 2019.

2.
Initiatives  within  scope  for  Budget  2020  fall  into  two  broad  categories:  cost
pressures and new spending.

a.
Cost pressure initiatives must be non-discretionary or present significant
risks if not funded, and are strictly limited to pressures driven by regulatory
requirements or changes in volume and/or price.  The Treasury will assess
and the Minister of Finance will consider cost-pressure initiatives.

b.
New spending initiatives fall into two sub-categories:

i.
Priority aligning initiatives, which align with one or more Priority or
sub-priority.    Agencies  submitting  initiatives  will  determine  which
Priorities  their  initiatives  align  with.    Led  by  Coordinating  Ministers,
cross-agency  Secretariats  will  develop  a  package  of  Priority-aligning
initiatives to present to Budget Ministers.

ii.
Other  new  spending  initiatives.    These  initiatives  include
commitment-related initiatives that are not cost-pressures or  Priority-
aligning.  Initiatives that do not relate to any Priority or commitment may
be considered in this category if they demonstrate clear alignment to
the Government’s  broader  objectives and there  is  evidence  they  wil
strongly contribute to raising New Zealanders’ wellbeing.  The Treasury
will assess these initiatives and the Minister of Finance will oversee the
development of this package.
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3.
Key changes to the Budget process include:

a.
The Budget 2019 wellbeing priorities have been adapted slightly for Budget
2020.  Sub-priorities have been added to provide a greater focus and enable
better prioritisation of initiatives within packages.

b.
Five  Secretariat  Groups,  led  by  Coordinating  Ministers  and  supported  by
officials  from  across  the  public  sector,  will  develop  draft  Priority-aligning
packages for submission to the Minister of Finance in January.  The Treasury
will support Secretariats where needed, and Chief Science Advisors will be
consulted  on  the  packages’  development.    The  process  for  running  these
secretariats and developing packages has been delegated to Coordinating
Ministers.

c.
The Minister of Finance, supported by the Treasury, will develop a package
of  initiatives  that  are  not  Priority-aligning.    The  package  will  include  cost
pressures  and  ‘Other’  new  spending  initiatives,  including  commitment-
related initiatives that are not Priority-aligning.

d.
Portfolio  Ministers  will  have  an  opportunity  to  discuss  their  agencies’  cost
pressures with the Minister of Finance or an Associate Minister of Finance in
bilateral meetings in November.

e.
The Minister of Finance will write to Portfolio Ministers shortly, requesting a
report on progress in selected initiatives that received new funding in recent
Budgets.

f.
Wellbeing  analysis  has  been  simplified  and  a  number  of  requirements  for
agencies removed.  Wellbeing analysis is to focus on the groups likely to be
impacted by the initiative, the magnitude of impact, and the efficacy of the
initiative in responding to the problem or opportunity.

g.
There  are  changes  to  the  process  for  submitting  initiatives.    In  addition  to
uploading  initiatives  to  CFISnet,  agencies  are  required  to  prepare
submission letters to the Minister of Finance.  There are detailed instructions
for submitting initiatives in the attached guidance.

4.
The  guidance  is  available  on  CFISnet  as  a  “related  file”  to  this  circular.    The
guidance  also  includes  templates,  which  you  will  need  for  your  initiative
submissions.  These templates are also available in Word format on CFISnet as a
“related file” to this circular.

5.
The  Treasury  will  issue  a  circular  before  Christmas  covering  the  indicative
timetable for the remainder of the production phase of Budget 2020.  The “Budget
2020  Process  and Technical  Guide for  Departments”  will  be  released  alongside
this circular.

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Timetable

6.
Below are the key dates for Departments submitting initiatives in Budget 2020:

Item
Date
Budget 2020 – Guidance for Agencies released,
24 September 2019
including Budget initiative templates
Cost pressure submissions due
1 November 2019
Coordinating Ministers update Cabinet Committees on  November 2019
progress with each Priority
Bilateral meetings between the Minister of
Finance/Hon Dr David Clark and portfolio Ministers,
November 2019
discussing cost pressures and progress delivering
Budget 2018 and 2019 commitments
New spending initiatives due
29 November 2019
Draft Priority packages due from Coordinating
Late January 2020
Ministers
Coordinating Ministers meet with Minister of Finance
Early February 2020
to discuss draft Priority packages
Final Priority packages due from Coordinating
Late February 2020
Ministers
Cabinet Committees consider near-final Budget
Late March 2020
packages
Cabinet considers final Budget 2020 Package
Early April 2020

Alex Harrington
Manager, Budget Management
For Secretary to the Treasury
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Titles and Descriptions

Technical and Process Guide for Agencies

October 2019

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© Crown Copyright
This work is licensed under the Creative Commons Attribution 4.0 International

licence. In essence, you are free to copy, distribute and adapt the work, as long as
you attribute the work to the Crown and abide by the other licence terms.
To view a copy of this licence, visit https://creativecommons.org/licenses/by/4.0/. Please note that no
departmental or governmental emblem, logo or Coat of Arms may be used in any way which infringes
any provision of the Flags, Emblems, and Names Protection Act 1981. Attribution to the Crown should
be in written form and not by reproduction of any such emblem, logo or Coat of Arms.

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How to write titles and descriptions
The maximum amount of characters available in CFISnet for titles is 120. The maximum
amount of characters for descriptions is 800.

Like in Budget 2019, both titles and descriptions must be written in plain English, and should
be able to be understood by the public without supporting documentation. They should also
be outcomes-focussed, rather than outputs-focused.

Titles

There are two key pieces of information that should be captured in an initiative’s title:

1.
The nature of the investment, and
2.
The population group or area being targeted.

Cost Pressure Titles

As funding for cost pressure initiatives usually builds on existing investment, you should start
the initiative’s title with words such as: expanding, supporting, strengthening, increasing,
continuing, enabling and improving.


Example: Improving access to mental health supports for young people aged 15+

Example: Increasing pest management efforts across New Zealand’s Great Walks

New Spending Titles

As funding for new spending initiatives can support a range of different activities, be as
specific as possible when communicating the type of investment. You may wish to start the
title with words such as: developing, conserving, implementing, facilitating, establishing,
promoting, delivering, and transforming.


Example: Promoting healthy eating in primary schools

Example: Implementing pathways to support at-risk young people into work

Descriptions

There are two key pieces of information that should be captured in an initiative’s description:

1.
What outputs the initiative is purchasing; and
2.
What the expected outcomes of the initiative are.

You may wish to use the below guide to communicate this:


This initiative provides funding for [outputs]

This will [expand, develop]


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Cost Pressure Descriptions


Example: This initiative provides funding for additional housing grants for at-risk
families in the Northland area. This will enable up to 700 Northland residents to secure
suitable and safe long-term accommodation.

Example: This initiative provides funding to upgrade the Ministry of Business,
Innovation and Employment’s website. This will expand the range of services the
website delivers, and speed up application-processing times.

New Spending Descriptions*


Example: This initiative provides funding to develop a Samoan-language radio station.
The station wil  provide New Zealand’s 86,000 Samoan language speakers with news
and current events updates, focusing specifically on issues affecting New Zealand,
Samoa, and the wider Pacific Islands. This will support of equity of access to
information, and help Samoan New Zealanders maintain strong connections to their
communities – both in Aotearoa and abroad.

Example: This initiative provides funding for up to 600 eligible New Zealand businesses
to transform their waste-management practices. With this funding, businesses will be
able to offset the costs of engaging in more environmentally sustainable waste-
practices. This will help reduce New Zealand’s carbon footprint and support progress
towards the Zero Carbon by 2050 goal.

*Where possible, please quantify the impacted groups and outcomes.

4 |   Titles and Descriptions: October 2019

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BUDGET SENSITIVE
Cost Pressure Initiative Summary
Initiative Title
Overview
Agency to complete
Answers must not exceed 350 words.
Lead Minister
Provide the name of the Minister submitting the initiative.
Agency
Provide the name of the agency submitting the initiative.
Cost pressure driver

Volume

Price

Personnel (driven

Regulatory or
by volume/price)
legislative requirement
Cost pressure description
Provide a concise description of the cost pressure.
Provide evidence of what caused the pressure (e.g. population growth, price increases).
Cost pressure management
Provide an overview of why the pressure cannot be funded from baselines and what steps have been taken to manage
the pressure.
Case for funding
Explain how the initiative wil  mitigate or resolve the pressure, and provide an overview of what outputs it is purchasing.
Explain how the pressure wil  be managed in the event that no additional funding is received, highlighting any risks or
implications.
Agency contact
Provide the name, phone number and email address of the analyst or analysts who wrote this bid. They may be contacted
by the Treasury and should have a good working understanding of this bid.
Treasury contact
Provide the name of your Vote Analyst

Total Funding Sought
Agency to complete
Operating funding
2023/24
2019/20
2020/21
2021/22
2022/23
Total
sought ($m)
& outyears

Agency to complete
Capital funding
sought
19/20
20/21
21/22
22/23
23/24
24/25
25/26
26/27
27/28
28/29
Total
($m)

Funding Sought by Component
Agency to complete
Provide a component-by-component breakdown of what the requested funding wil  purchase. Briefly explain the formula used, or key assumptions made, to calculate
the cost of each output. Add additional rows to the table as needed to capture each output separately.
Funding profile ($m)
2023/24
Total
Vote
2019/20
2020/21
2021/22
2022/23
Input – Operating
& outyears


Total

N/A

Funding profile ($m)
Total
Vote
Input – Capital
19/20
20/21
21/22
22/23
23/24
24/25
25/26
26/27
27/28
28/29


Total

N/A
Formula and

Assumptions
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BUDGET SENSITIVE

Existing Funding Levels
Agency to complete
Provide an overview of existing operating funding levels.
Operating Funding profile ($m)
Total
2023/24
2019/20
2020/21
2021/22
2022/23

& outyears
Existing funding for

this pressure
Total funding sought

for this pressure
% change between

existing funding and
funding sought
Comments (optional)
Provide explanatory comments to help interpretation of the above baseline figures.

Provide an overview of existing capital funding levels.
Capital Funding profile ($m)
Total

19/20
20/21
21/22
22/23
23/24
24/25
25/26
26/27
27/28
28/29
Existing funding for

this pressure
Total funding sought

for this pressure
% change between

existing funding and
funding sought
Comments (optional)
Provide explanatory comments to help interpretation of the above baseline figures.

Treasury’s Recommendation
Treasury to complete
Assessment

Support full funding

Support scaled funding

Do not support

Defer
Provide a comment of up to one paragraph that explains the level of funding recommended. You should include
in your answer an overview of the initiatives: need for new funding; deliverability; merit; and costings. If you have recommended
scaling the initiative, your answer should provide an explanation of how and why.

Treasury to complete
Provide Treasury recommended funding levels below
Funding profile ($m)
Total
2023/24
2019/20
2020/21
2021/22
2022/23
Input – Operating
& outyears

Total

Funding profile ($m)
Total
Input – Capital
19/20
20/21
21/22
22/23
23/24
24/25
25/26
26/27
27/28
28/29

Total

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BUDGET SENSITIVE
New Spending Initiative Summary
Initiative Title (provide up to 120 characters)
Overview
Agency to complete
Initiative type
Priority
Commitment
Detail

Priority A

Coalition agreement
• If Priority-contributing, specify if aligned to a sub-priority
• If commitment, specify exact wording of commitment

Priority B

Confidence and Supply
• If Other (ie, neither aligned to a Priority nor a commitment),

Priority C

Speech from the Throne
provide up to 2 sentences outlining why this initiative has

Priority D
Other
been submitted and should be considered in Budget 2020
• NB: If a cost pressure, use separate cost pressure template.

Priority E

Other
Description
Provide up to 800 characters outlining the initiative’s aims, and intended wellbeing impacts.
New or existing initiative

Expansion or extension

New initiative
Cabinet consideration
Y/N  If this initiative has been considered and/or funded by Cabinet/Ministers previously, provide a three-sentence
overview of whether the initiative was approved OR funded and how.
Lead Minister
Provide the name of the Minister submitting the initiative.
Lead agency
Provide the name of the agency submitting the initiative.
Involved agencies or Ministers  If other Ministers or agencies were involved in the creation of this bid, or wil  be involved in delivering the initiative,
specify each agency and provide up to two sentences on the scope of their involvement.
Package initiatives
If this initiative is part of a package or suite of initiatives, provide a separate template for each initiative, and provide the names
of the other initiative(s) it relates to.
Agency contact
Provide the name, phone number and email address of the analyst or analysts who wrote this bid. They may be
contacted by the Treasury or Secretariat Group officials, and should have a good working understanding of the bid.
Treasury contact
Provide the name of your Vote Analyst.

Total Funding Sought
Agency to complete
Operating funding
2023/24
2019/20
2020/21
2021/22
2022/23
Total
sought ($m)
& outyears

Agency to complete
Capital funding
sought
19/20
20/21
21/22
22/23
23/24
24/25
25/26
26/27
27/28
28/29
Total
($m)

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BUDGET SENSITIVE
Initiative Details
Proposal
Agency to complete
Each answer must not exceed 300 words. To the extent practical, answers should link to information in the bid’s Wel being Analysis and
Investment Logic Map sections.
Problem or opportunity
Clarify the problem or opportunity this bid is responding to. In your answer, you should consider the specific group(s) af ected and
how widespread the problem or opportunity is. Draw on up to three key pieces of evidence if required.
Proposed initiative
Provide a summary of the proposed initiative and what outputs it is purchasing.
Expected outcomes
Provide an overview of how the outputs wil  contribute to achieving the initiative’s expected outcomes, with reference to the
problem or opportunity mentioned above. Consider in your answer the specific group(s) affected, the wellbeing domain(s) that
wil  be impacted, and the magnitude of impact over the short, medium and long term.
Regulatory or legislative
Y/N  If this bid requires a regulatory or legislative change, provide an overview of the required changes.
change required
If capital or ICT initiative
Type

ICT/data/digital

Physical Infrastructure

Other please specify
Start and end dates

Funding Sought by Component
Agency to complete
Provide a component-by-component breakdown of what the requested funding wil  purchase. Briefly explain the formula used, or key assumptions made, to calculate
the cost of each output. Add additional rows to the table as needed to capture each output separately.
Funding profile ($m)
2023/24
Total
Vote
2019/20
2020/21
2021/22
2022/23
Input – Operating
& outyears


Total

N/A

Funding profile ($m)
Total
Vote
Input – Capital
19/20
20/21
21/22
22/23
23/24
24/25
25/26
26/27
27/28
28/29


Total

N/A
Formula and

Assumptions
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Fit with Existing Activity
Agency to Complete
The answer must not exceed 300 words.
Existing services
Provide a concise overview of how the initiative intersects with existing services or initiatives, including non-spending arrangements,
with similar objectives. If funding for this bid extends or expands existing investment, provide a summary of how, with reference to the
existing funding profile above.
Agency to complete
Provide an overview of existing funding levels for this initiative, and/or initiatives with similar objectives, in the two tables below.
Operating Funding profile ($m)
Total
2023/24
2019/20
2020/21
2021/22
2022/23

& outyears
Existing funding for

this/similar initiatives
Total funding sought

for this initiative
% change between

existing funding and
funding sought
Comments (optional)
Provide explanatory comments to help interpretation of the above baseline figures.
Capital Funding profile ($m)
Total

19/20
20/21
21/22
22/23
23/24
24/25
25/26
26/27
27/28
28/29
Existing funding for

this/similar initiatives
Total funding sought

for this initiative
% change between

existing funding and
funding sought
Comments (optional)
Provide explanatory comments to help interpretation of the above baseline figures.

Options analysis
Agency to Complete
The answer must not exceed 300 words.
Options analysis
Provide a bul et point list of different options, with short summaries where needed, that were considered for addressing the problem or
opportunity. If applicable, include alternative funding options and non-spending arrangements.

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Intervention Logic Map
Agency to attach
Intervention logic maps are compulsory and must not exceed one A4 page. Maps must capture the specific problem of opportunity the initiative aims to address;
the initiative’s outputs; its outcomes (over the short, medium and long term where applicable) and the future state the initiative contributes to. Corresponding
Wel being Domain icon(s) (below) should be provided alongside each outcome to indicate impacted domains. Quantification and monetisation of each impact should
also be included where possible.
Wellbeing domains
Civic  engagement  and
Cultural identity
Environment
Subjective wellbeing
governance

Health
Housing
Income and consumption
Safety

  Jobs and earnings
Knowledge and skil s
Social connections
Time-use

Wellbeing Analysis & Risks
Agency to complete

Provide a brief overview of the initiative’s key impacts – both positive and negative. Use a new row for each impact.

Impact
Affected Group
Domain
Supporting Evidence
Magnitude of
Timeframe Realised
Description
Impacted

impact
Identify the
Indicate which
Indicate if the impact wil  be
Using the icons,
Provide a summary of up to
Indicate the
expected impact.
group(s) or places
realised in the short (<5
indicate the wellbeing
250 words outlining the
magnitude and size
wil  be impacted.
years), med (5-10 years), or
domain(s) that wil  be
initiative’s likely efficacy in
of the impact, and
Quantify the size of
long term (>10 years).
most impacted.
achieving the stated
where possible,
impacts where
Using the icons, indicate the
impacts. Provide links to up
monetise present
possible, taking into
wellbeing domain(s) that wil
to 3 of pieces evidence
value gain or (loss)
account population
be most impacted.
consulted that
PV$m.
size if applicable.
demonstrates this efficacy.
Agency to complete
Dependencies,
Provide an overview of any key dependencies and assumptions made when considering or applying the above evidence, and the
assumptions and
implications – including risks - that this may have on the initiative’s ability to achieve the stated impacts.
risks

Child Poverty Implications
Agency to complete
The fol owing reporting requirements are now required:
This initiative has a positive/negative impact on child poverty:
Child Poverty
Y/N  If Y: provide up to three sentences describing the impact (positive or negative), who is impacted, and how

Monitoring and Reporting
Agency to complete
The answer must not exceed 300 words.
Provide an overview of the initiative’s: evaluation and monitoring methodology; how often and to whom monitoring and performance reports wil  be provided; and
when the first report back is expected.

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Alternative Option
Agency to complete
The answer must not exceed 500 words.
Scaled
Provide a concise overview of the preferred scaled option. Include in your answer how its expected impacts differ from the
initiative
initiative if fully funded, and any risks associated with scaling.
Funding profile ($m)
Input – Operating
2023/24 &
2019/20
2020/21
2021/22
2022/23
Total
outyears

Total

Funding profile ($m)
Input
–
Total
Capital
19/20
20/21
21/22
22/23
23/24
24/25
25/26
26/27
27/28
28/29

Total

Formula and
Assumptions if

different

Minimum Viable Option
Agency to complete
The answer must not exceed 500 words.
Scaled
Provide a concise overview of the proposed initiative’s minimum viable scaled option. Include in your answer how its
initiative
expected impacts differ from the initiative if fully funded, and any risks associated with scaling.
Funding profile ($m)
Input – Operating
2023/24 &
2019/20
2020/21
2021/22
2022/23
Total
outyears

Total

Funding profile ($m)
Input – Capital
Total
19/20
20/21
21/22
22/23
23/24
24/25
25/26
26/27  27/28
28/29

Total

Formula and
Assumptions if

different

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Cost Pressure Submission Letter

Hon Grant Robertson
Parliament Buildings
WELLINGTON

Dear Minister
I am submitting the cost pressure initiatives outlined below for the [name] portfolio for
consideration as part of the Budget 2020 process.
Total amount of funding sought:
Operating Funding
2023/24 &
Sought ($m)
2019/20
2020/21
2021/22
2022/23
Total
outyears

Capital Funding
19/20
20/21
21/22
22/23
23/24
24/25
25/26
26/27  27/28
28/29
Total
Sought ($m)

•  List the title of each new spending initiative below. The titles must be identical to
those included in the associated CFISnet submissions and initiative templates.

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New Spending Submission Letter

Hon Grant Robertson
Parliament Buildings
WELLINGTON

Dear Minister
I am submitting the new spending initiatives outlined below for the [name] portfolio for
consideration as part of the Budget 2020 process.
Total amount of funding sought:
Operating Funding
2023/24 &
Sought ($m)
2019/20
2020/21
2021/22
2022/23
Total
outyears

Capital Funding
19/20
20/21
21/22
22/23
23/24
24/25
25/26
26/27  27/28
28/29
Total
Sought ($m)

•  List the title of each new spending initiative below. The titles must be identical to
those included in the associated CFISnet submissions and initiative templates.
[Agency] has also collaborated on the following bids, formally submitted by
other Ministers:
•  [Title of each new spending initiative your agency has collaborated on], led by [lead
Minister].

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Late Cost Pressure Initiative Letter
Use this template to submit cost pressure initiatives for consideration in Budget 2020
that were not lodged with the Treasury by November 1, 2019.
Hon Grant Robertson
Parliament Buildings
WELLINGTON

Dear Minister
I am seeking your agreement to include the following late cost pressure initiative(s)
outlined below for the [name] portfolio for consideration as part of Budget 2020.
•  Provide the name(s) of the initiative(s) being submitted late
•  Set out the reasons for the initiative(s) being submitted late
•  Append completed initiative template(s) with required supporting information
Total amount of funding sought for late Budget 2020 cost pressure initiatives:
Operating Funding
2023/24 &
Sought ($m)
2019/20
2020/21
2021/22
2022/23
Total
outyears

Capital Funding
19/20
20/21
21/22
22/23
23/24
24/25
25/26
26/27  27/28
28/29
Total
Sought ($m)

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Late New Spending Initiative Letter
Use this template to submit new spending initiatives for consideration in Budget 2020
that were not lodged with the Treasury by November 29, 2019.
Hon Grant Robertson
Parliament Buildings
WELLINGTON

Dear Minister
I am seeking your agreement to include the following late initiative(s) outlined below for
the [name] portfolio for consideration as part of Budget 2020.
•  Provide the name(s) of the initiative(s) being submitted late
•  Set out the reasons for the initiative(s) being submitted late
•  Append completed initiative template(s) with required supporting information
Total amount of funding sought for late Budget 2020 new spending initiatives:
Operating Funding
2023/24 &
Sought ($m)
2019/20
2020/21
2021/22
2022/23
Total
outyears

Capital Funding
19/20
20/21
21/22
22/23
23/24
24/25
25/26
26/27  27/28
28/29
Total
Sought ($m)

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Approach to Digital, Data and ICT initiatives
In 2018 the Minister of Government Digital Services agreed to work with the Minister of
Finance to develop an all-of-government system view of ICT spending, including bids for new
projects and upgrades in the pipeline, to ensure any future ICT investment is targeted,
efficient and value of money. As part of this work, the Government Chief Digital Officer
(GCDO) and the Government Chief Data Steward (GCDS), jointly with Treasury presented
investment principles for Budget 2019 which were endorsed by Cabinet in 2019.
The investment principles provide a mechanism to encourage and support the submission of
bids which:
  come together as a coherent suite that avoids duplication and aligns with the agreed
strategic direction for the digital and data system;
  consider the extent to which an initiative delivers value beyond a single agency (i.e. a
‘system-win’); and
  provide important component parts needed to address critical system gaps and build the
digital and data system in a sustainable and enduring way.
The expectation is that the principles will continue to evolve over the coming years and be
applied to both existing baseline and to new Budget investment, resulting in more
coordinated and efficient investment. The refreshed investment principles for Budget 2020
were developed with the input of agency experts and stakeholders and endorsed by the
Digital Government Leadership Group.
Application of Digital, Data and ICT Investment Principles
Digital, data and ICT initiatives will be assessed according to which category they are
submitted under (priority-aligning new spending, ‘Other’ new spending, or cost pressure).  In
addition, the GCDO and GCDS will provide advice to Budget decision-makers on these
initiatives using the digital, data and ICT investment principles (see below).
This will involve providing advice on:
  How well initiatives align with the digital, data and ICT investment principles;
  The relative priority of initiatives from an overall system perspective using existing
frameworks like the Data Investment Framework where appropriate;
  The achievability of the proposed solution and how confident they are that it can be
delivered based on their understanding of market and workforce constraints, technology
maturity, delivery approach, and organisational readiness; and
  Identifying where agencies could benefit from coordination and collaboration using
existing forums, for example the Digital Government Partnership working groups.

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What is a Digital/Data/ICT initiative?
For the purposes of Budget 2020; digital/data/ICT bids are investments which fall into the
following categories:
Investment category
Definition
Service Delivery
Core systems and tools for delivering or managing services to
customers, including customer relationship management and
case management. Or, core line of business systems, e.g. the
Passports and Courts Management Systems
Information and Data
Initiatives which have a significant data component,
Services
information management element, look to share data,
provide data related insights, or use data for innovation. Or,
the systems to support the management of data, including
business intelligence, data warehouse, enterprise content
management, and other data and information systems.
Corporate (Back Office)
Corporate systems including payroll, financial management
information systems (FMIS), human resource information
systems (HRIS), enterprise resource planning systems (ERPs),
and other corporate systems for internal communications and
intranets
Digital Foundations and
Enabling digital technologies including digital government
Infrastructure
platforms, identity and access management services, end user
computing, and core ICT infrastructure and networks
Specialist
Specialised hardware including the software operating this
hardware. (e.g. medical equipment or passports printers and
the software operating that equipment). The hardware should
be unique to an agency or to only a few agencies across
government.
Engagement with the GCDO or GCDS
Agencies are expected to engage with the GCDO and/or GCDS for any investment intentions
that contain significant components of digital, ICT or data.
GCDO prefers early engagement with agencies – preferably while investment intentions are
being formed, as Budget submissions are being drafted, or through business case reviews.
The GCDO Investment Advisers are available to meet regularly with representatives from
your agency. Contact GCDO via [email address]
For bids that are predominately data-focussed, the GCDS supports agencies in the
development of their bids to ensure a strong system-focus. This includes providing the forum
for testing, workshopping, and providing advice on early budget intentions, and on the data
principle and Data Investment Framework during bid development.

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Intensive workshops and guidance will be facilitated through the Information Groups during
September – November. Agencies will receive the expertise of Information Group members
who consider initiatives from a system perspective and are responsible for developing the
Data Investment Framework. Contact GCDS via [email address].
Investment Principles
The revised Investment Principles for Budget 2020 were endorsed by the Digital Government
Leadership Group on 26 September.
Service delivery initiatives will be prioritised if the initiative:
  Prioritises the use of open application programming interfaces (APIs) to expose business
functions, rules and data
  Uses innovation and design thinking to solve complex problems, including:
o  taking a collaborative approach by co-designing and co-delivering solutions across
sectors and clusters;1
o  prototyping solutions that can be scaled around customer-centric outcomes;
o  adopting digital technologies and components to enable flexibility and deliver
value for money; and
o  valuing consistency, through utilising government digital and data standards and
guidance (e.g. identity and digital design standards).
  Invests in flexible and reusable systems, components and rules, and includes design
considerations for responding to unpredictable future business, environment and
government priorities.
Information and Data Services initiatives will be prioritised if the initiative:
  Focusses on the development of an enabling data system, as described by the Data
Investment Framework, which prioritises investment within the following focus areas for
Budget 2020:
o  the delivery of data and analytics for decision-making with an emphasis on
meaningful measures of progress which deliver value to address current
government priorities, and seek to enhance capability in the use of data for policy
and decision-making;
o  the design of data for system re-use, where a system mind-set and culture
provides the environment for data to be designed with all-of-government needs
in mind, with an emphasis on a shared process for the collection of common data
variables, and a common approach to embedding Māori perspectives about data
into the way data is managed and used; and
o  stewardship of the system to ensure the moving parts, and key actors enable a
system where activity builds on existing and parallel work to add value, with
emphasis placed on system infrastructure to meet the needs of its users –
providing access to meet demand and facilitate sharing.


1 The combination of government agencies, NGOs, and private sector entities, that together create public value.

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Corporate (Back Office) initiatives will be prioritised if the initiative:
  standardises back office functions under the all-of-government common process model;
  invests in a fit-for-purpose solution, considering size and functionality; and
  uses existing all-of-government contracts or commodity services and takes a
collaborative system procurement approach.
Note: Payroll initiatives should also be made known to the “Improving Government Payroll
Systems” programme led by the Government Chief Digital Officer, which covers the
monitoring regime for payroll investments, project assurance and Holidays Act remediation.
Digital Foundations and Infrastructure initiatives will be prioritised if the initiative (new
principle):
  is supported by multiple agencies to create system assets or enablers;
  invests in components for a digital public service (e.g. digital identity, marketplaces,
service innovation labs); and
  prefers cloud-based infrastructure services or all-of-government common capabilities,
when investing in ICT infrastructure or telecommunications.
Note: Capital (or asset ownership) investment in infrastructure will only be supported by
exception; e.g. the underlying infrastructure to support a key system is owned by the agency
for reasons of national security or critical service delivery.
Specialist initiatives are considered on a case-by-case basis.
Note: Investments that extend legacy business models and technology assets will not be
prioritised. Exceptions may exist for critical systems that require investment to prevent
imminent system failure or loss of significant service delivery.

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Budget 2020 Information
Session for Agencies
26 September 2019

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Contents
• Overview
• Scope for Budget 2020
• Types of initiatives
– Cost Pressures
– New Spending
• Process
• Key dates
• Q&A
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Overview

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Key features of the Wellbeing Budget 2020
•
Budget 2020 will be the second Wellbeing Budget, continuing the focus on
embedding a wellbeing approach in Budget decision making
•
Budget 2019 Priorities have been refined to provide greater clarity on the
focus for Budget 2020 and sub-priorities included
•
A Coordinating Minister has been appointed for each Budget Priority to
lead development of Priority-aligned new spending packages
•
Cost pressures will be managed through an earlier separate process run
by Treasury and the Minister of Finance
•
All ‘other’ initiatives will be assessed by Treasury and considered by the
Minister of Finance (i.e. not priority aligned or cost pressures)
•
Focus on collaboration to continue and prioritising initiatives that show a
clear, compelling and well-evidenced case
•
Budget templates have been simplified and different templates introduced for
cost pressures and new spending initiatives
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Budget allowances
•
Cabinet has agreed that Budget 2020 will be delivered in line with the
Government’s Budget Responsibility Rules (BRRs)
•
To remain on track to meet the BRRs the following allowances were agreed for
Budget 2020:
Budget
Budget
Budget
Budget
2020
2021
2022
2023
Operating allowances
$3.0b
$2.4b
$2.4b
To be set in
Budget Policy
Statement
Multi-year capital allowance
$4.4b
2020
•
These are unchanged from those announced at Budget 2019, but do not reflect
pre-commitments already made in 2019/20 against these allowances
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Scope for Budget 2020

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Scope overview
•
This section outlines what initiatives are in-scope for Budget 2020 and their
respective requirements
•
Budget funding should only be sought when all other sources of funding have
been exhausted
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Budget 2020 Priorities
Just Transition –
Future of Work –
Supporting New
Physical and Mental
Enabling all New
Māori and Pacific –
Child Wellbeing –
Zealanders in the
Wellbeing –
Zealanders to benefit
Lifting Māori and
Reducing child poverty
transition to a climate-
Supporting improved
from new technologies
Pacific incomes, skills,
and improving child
resilient, sustainable,
health outcomes for all
and lift productivity
and opportunities
wellbeing
and low-emissions
New Zealanders
through innovation
economy
Hon David Parker
Hon Phil Twyford
Hon Kelvin Davis
Hon Tracey Martin
Hon Dr David Clark
Sub-Priority 1:
Sub-Priority 1:
Sub-Priority 1:
Enabling workers to
Sub-Priority 1:
Sub-Priority 1:
Strengthening existing
Enable land use to
adapt to technological
Lifting Māori and
Improving housing
mental health services
deliver higher value
change by continually
Pacific peoples' skills,
quality and income
in the health sector
and improved
upskilling, re-skilling,
education, income and
levels for low-income
and beyond, with a
environmental
and participating in
employment outcomes
families
focus on under 24-
outcomes
productive and fair
year-olds
employment
Sub-Priority 2:
Sub-Priority 2:
Sub-Priority 2:
Prevention and early
Sub-Priority 2:
Supporting businesses
Improving Māori and
intervention for
Sub-Priority 2:
Delivering a
by enabling uptake of
Pacific health and
children and whānau
Promote a sustainable
sustainable and
new technology and
housing outcomes
with the greatest
and affordable energy
equitable public health
improving access to
through housing
needs, including
system
and disability system
global markets, skills,
quality, affordability,
continuing to address
and infrastructure
and tenure
family violence and
sexual violence
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Outstanding commitments
•
There are a number of outstanding commitments in the Coalition
Agreement, Confidence and Supply Agreement, and Speech from the
Throne that will need to be met in Budget 2020
•
These will be managed and prioritised through the relevant process for each
type of initiative (i.e. there will not be a separate track for these)
–
Initiatives that are both a commitment and Priority-aligning will be assessed by the
relevant secretariat and considered by the Coordinating Minister
–
Initiatives that relate only to a commitment and are not-Priority aligning will be
assessed by the Treasury, and considered by the Minister of Finance as part of a
non-priority aligned package
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Scope overview
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Cost pressure initiatives
•
Cost pressures are driven by regulatory requirements or changes in the
volume or price for delivering existing services or outputs
–
This includes meeting existing or impending regulatory or legislative
requirements, and volume/price-driven personnel-pressures.
•
Cost pressures will be managed separately and earlier than new spending
initiatives
•
Template due in CFISnet 5pm Friday 1 November
•
Portfolio Ministers are required to formally submit a letter outlining any cost
pressure initiatives by 5pm Friday 1 November
–
One cost pressure letter is to be prepared for each portfolio submitting initiatives
–
Further information can be found in section 5.3 of the guidance
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Cost pressure requirements
•
The template is substantially lighter than in Budget 2019 and more suited to
this type of initiative, including:
–
No wellbeing analysis
–
Limited options analysis
–
No monitoring/reporting description
–
No collaboration section
•
Agencies will need to demonstrate:
–
A clear understanding of the cost driver creating the pressure and, where funding
has been provided in past Budgets, why further funding is required
–
A high level of risk is attached to not funding the initiative (e.g. service failure,
significant disruption to services, or not meeting legislative requirements)
–
Other options undertaken and/or considered to manage the pressure within
baselines
–
A detailed cost breakdown outlining what would be purchased and clearly show
the assumptions behind forecasts and costings
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New spending initiatives
•
There are two sub-categories within new spending initiatives:
– Priority-aligning – Will be assessed by Secretariat Groups and
considered by the Coordinating Minister overseeing the Priority area,
– ‘Other’ (non Priority-aligned) – Will be assessed by Treasury and
considered by the Minister of Finance
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New spending: Priority-aligned
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New spending: Priority-aligned
•
Submitted under one of the five priorities and should address a sub-priority
•
Where they relate to an outstanding commitment, they are still submitted under
the relevant priority
•
Each Priority will be led by a Coordinating Minister who will work with relevant
portfolio Ministers to develop a prioritised package of initiatives
•
Coordinating Ministers will recommend their priority-packages to the Minister of
Finance and Budget Ministers, who will provide feedback and ultimately
recommend the final Budget 2020 package for Cabinet agreement
Priority
Minister
A
Just Transition
Hon David Parker
B
Future of Work
Hon Phil Twyford
C
Maori and Pacific
Hon Kelvin Davis
D
Child Wellbeing
Hon Tracey Martin
E
Physical and Mental Wellbeing
Hon Dr David Clark
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Secretariat Groups
•
Coordinating Ministers will be supported by Secretariat Groups for each Priority
•
Coordinating Ministers will confirm membership and function of each Secretariat
Group
•
We expect Treasury to be involved in the Secretariat Groups – to be confirmed
following conversations with Coordinating Ministers
•
Secretariat Groups may contact agencies requesting further information on
initiatives
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New spending: Other
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New spending: Other
•
New spending initiatives that aren’t priority-aligned will be considered
through the ‘Other’ process
•
This should primarily consist of initiatives that address outstanding
commitments that do not align with a priority
•
Initiatives that do not align with a priority or address an outstanding
commitment will only be considered if they meet a very high bar
•
These initiatives will need to demonstrate the same information
requirements as priority-aligned new spending initiatives
•
Will be assessed by the Treasury and considered by the Minister of Finance
in his development of a non-Priority aligned package
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New spending requirements
•
Templates due in CFISnet 5pm Friday 29 November
•
Portfolio Ministers are required to formally submit a letter outlining by 5pm
Friday 29 November
–
One new spending letter is to be prepared for each portfolio submitting initiatives
–
This is additional to the cost pressure letter
–
Further information can be found in section 5.3 of the guidance
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New spending template
•
Analysis requirements simplified from Budget 2019
•
Agencies will need to provide:
–
wellbeing analysis and a well evidenced and robust intervention logic for each
new spending initiative
–
an overview of the key dependencies and assumptions made when considering
the evidence base
–
An intervention logic for each initiative, underpinned by evidence, including:
•
understanding of the current state and counterfactual
•
different options proposed to address the problem
•
the assumed outcomes behind the proposed initiative, and
•
how the initiative will be implemented and evaluated.
•
Evidence should be high quality, up to date, and focus on efficacy of
intervention, not on the existence of the problem or opportunity
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New spending template: Wellbeing analysis
•
Agencies are asked to identify the domains impacted by the initiative and
provide the following information:
–
A description of the impact on the domain: For example, if the initiative
increases the number of social houses, an impact on the housing domain could be
a reduction in overcrowding and related health costs. More than one impact can be
attributed to each domain.
–
A description of who is affected: This could be individuals, families or the
Government and should also cover the degree of impact for different groups ie,
some groups might be more impacted than others.
–
The magnitude of impact: For example, if there is an increase in social housing
what is the expected percentage decrease in overcrowding and flow on health
costs from this?
–
Timeframes: The estimated timeframes in which the impact will be realised.
–
Evidence base and quality: What evidence underpins the information provided on
impacts, timeframes and the magnitude of the impact? For example, what is the
evidence around reduction in overcrowding and avoided health costs?
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New spending template: Child poverty
•
The Child Poverty Reduction Act 2018 requires the Minister of Finance to
produce a report on Budget day that sets out:
–
Progress made in the most recently completed financial year in reducing child
poverty, consistent with the government’s child poverty targets;
–
Whether and, if so, to what extent, measures in the Budget affect child poverty
(either positively or negatively)
•
We are interested in initiatives that impact both the number of children living
in poverty, as determined by the child poverty measures, and initiatives that
may not impact the measures, but may still have the potential to impact the
lived experiences of families with children
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New spending template: Monitoring and
reporting
•
Agencies will be required to provide an overview of the initiative’s evaluation
and monitoring methodology, including:
–
How often and to whom monitoring and performance reports will be provided
–
When the first report back is expected
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New spending template: Options analysis
•
As always, agencies are expected to provide detailed costings of their
initiatives
–
This includes formulas and assumptions behind costings
•
This year, we have asked for an alternative option and a minimum viable
option to support the assessment of an initiative
•
For both options, agencies should clearly articulate the impact of scaling on
expected impacts and any associated risks
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Additional system advice: Digital, Data,
and ICT initiatives
•
Similar to Budget 2019, in addition to being assessed by the relevant
secretariat and/or Treasury, GCDO and GCDS will provide advice on
initiatives with data, digital, or ICT components
•
This will focus on:
–
How well initiatives align with the data, digital, and ICT investment principles
–
The relative priority of initiatives from an overall system perspective
–
Confidence in delivery based on workforce constraints, technology maturity,
delivery approach, and organisational readiness
•
Their advice will feed into relevant package processes
•
Further guidance is available on CFISnet, including what is considered a
data, digital, or ICT initiative
•
Agencies should engage with GCDO and/or GCDS as early as possible if
they expect to submit initiatives with data, digital, and/or ICT components
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Additional system advice: Large capital
initiatives
•
As in Budget 2019, capital initiatives will be treated the same as operating
for the purposes of submission and initial assessment
–
Priority-aligning initiatives seeking capital funding will be considered by the
relevant Secretariat Groups
–
All other capital initiatives will be considered by Treasury in either the cost
pressure or ‘Other’ process
•
However, this year Treasury will provide an additional system view of large
capital initiatives to Budget Ministers in February, alongside their
consideration of draft packages
•
This will focus on prioritisation of investments, improving coordination and
sequencing, and the long-term capital pipeline
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Process

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Budget 2020 process overview
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Bilaterals
•
Individual bilaterals will be held with all portfolio Ministers in November
•
These meetings will be used to:
–
Reinforce expectations and requirements for Budget 2020
–
Discuss cost pressures in Budget 2020
–
Discuss progress delivering commitments from Budget 2018 and Budget 2019
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Cabinet Committees
•
Cabinet committees will be involved at two points in the process, but less
than in Budget 2019
–
November: for Coordinating Ministers to update Committees on how their priority
is progressing
–
March: to consider near final Budget packages ahead of Cabinet
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Budget Ministers
•
Budget Ministers will continue to be the decision-making body throughout
the Budget process that will make recommendations to Cabinet
•
The Budget Ministers are the same as in Budget 2019:
–
The Prime Minister
–
The Deputy Prime Minister
–
The Minister of Finance
–
Associate Minister of Finance Dr David Clark
–
Associate Minister of Finance James Shaw
•
Budget Ministers meetings will take place mainly through Feb to Apr
•
They will consider priorities and trade-offs across packages, provide
feedback on draft packages, and ultimately recommend a final Budget
package to Cabinet
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Key dates and next steps
Item
Date
Budget 2020 – Guidance for Agencies released, including Budget initiative templates
Late September 2019
Meetings with Coordinating Ministers to set out expectations for the Priority packages and
Early October 2019
discuss initial focus areas
• Cost pressure submissions due
1 November 2019
• Report back from Portfolio Ministers on delivering commitments from previous Budgets
Coordinating Ministers update Cabinet Committees on progress with each Priority
November 2019
Bilateral meetings with Ministers
November 2019
New spending initiatives due
29 November 2019
Draft Priority packages due from Coordinating Ministers
Late January 2020
Coordinating Ministers meet with Minister of Finance to discuss draft Priority packages
Early February 2020
Final Priority packages due from Coordinating Ministers
Late February 2020
Cabinet Committees consider near-final Budget packages
Late March 2020
Cabinet considers final Budget 2020 paper
Early April 2020
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Questions and discussion

Document Outline

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