Oath of Office

"I do swear that I will well and truly serve

our Sovereign Lady the Queen in the Police,

without favour or affection,

malice or ill-will,

until I am legally discharged;

that I will see and cause Her Majesty's peace

to be kept and preserved;

and I will prevent to the best of my power

all offences against the peace;

and that while I continue to hold the said office

I will to the best of my skill and knowledge

discharge all the duties thereof faithfully

according to the law.

So help me God."

G.6

Report of the

NEW ZEALAND POLICE

for the year ended

30 June 2003

Presented to the House of Representatives Pursuant to Section 39 of the Public Finance Act 1989

The Minister of Police

WELLINGTON

Pursuant to the provisions of Section 65 of the Police Act 1958 and Section 39 of the Public Finance Act 1989, I submit my report on the operations of New Zealand Police for the year ended 30 June 2003.

R J Robinson

Commissioner of Police

POLICE VISION

"Safer Communities Together"

POLICE MISSION

To serve the community by reducing the incidence and effects of crime, detecting and apprehending offenders, maintaining law and order and enhancing public safety.

POLICE VALUES

• Maintain the highest level of integrity and professionalism

• Respect individual rights and freedoms

• Consult with, and be responsive to the needs of the community

• Uphold the rule of law

• Consult with, and be responsive to the needs, welfare and aspirations of all Police staff

• Be culturally sensitive

• Integrate Treaty of Waitangi principles and Mäori values into policing

Table of Contents

Commissioner's Overview *

Achievement of Key Priority Areas *

Reducing Inequalities, and Equal Employment Opportunities *

Statement of Objectives and Service Performance *

Outputs Classes

1. Policy Advice and Ministerial Servicing *

2. Policing Support to the Community through Partnerships, Education, Crime Prevention and Youth Programmes *

3. Directed Patrol Activities *

4. Police Primary Response Management *

5. Case Management *

6. Case Resolution *

7. Enforcement of Court Orders *

8. Custodial and Escort Services *

9. Public and Personal Security *

10. Vetting and Firearms, Licensing *

11. Lost and Found Property *

12. Road Safety Programme *

Financial Statements *

Additional Financial Information *

Information Required by Statute *

Organisational Information *

Statistical Information *

Commissioner's Overview

Commissioners Overview

Introduction

This financial year began tragically for New Zealand Police with the death on duty of Detective Constable Duncan Taylor and the serious wounding of Detective Jeanette Park at Feilding on 5 July 2002.

Duncan's wife Melanie and their son Campbell, his mother, sisters, extended family, friends and colleagues are now facing the harsh reality of life without him. It is not easy, and we continue to offer support wherever we can.

It strikes very close to home when a colleague is killed on duty.

I have huge respect for all the Police staff who, despite intense feelings of shock and grief, got on with the job at hand that night and in the long days that followed Duncan's death. They are all to be commended.

Jeanette Park has now returned to duty and is an example of the service ethic upheld by members of New Zealand Police.

National Security

12 October 2002 will also be remembered as a tragic day for many families here at home and internationally. The Bali bombing claimed the lives of 202 people, including three New Zealanders and more than 80 Australians. The bombing highlighted the need for New Zealand to be vigilant about its national security.

The prime responsibility for detecting and preventing terrorism in New Zealand lies with Police. We have taken that responsibility very seriously, placing appropriate staff and resources into security activities.

International networks play an important role in countering terrorist threats and it's advantageous to have a presence in the main intelligence hubs. To this end, during the year we opened Police liaison posts in Washington DC, London and Jakarta.

The year also marked the first use of new powers under the Terrorism Suppression Act 2002, when I requested the Prime Minister to designate Jemaah Islamiyah and some other groups and organisations as terrorist entities.

Police was required to deal with several threatening letters containing small quantities of cyanide sent to a media outlet and three diplomatic missions. The letters could not be discounted as hoaxes, and the file remains open.

Operational Activities

Staff had a busy year in other operational areas too.

New Zealand Police continued to assist South Pacific nations, with ten Police Officers working in mentoring roles as part of the New Zealand Solomon Islands Policing Project. The aim was to improve policing services through building capability among Royal Solomon Islands Police staff.

More than 100 staff were deployed on Operation Marlin to police the Louis Vuitton and America's Cup regattas in Auckland between September and March.

The event passed without serious incident despite the potential for terrorist activity that such iconic events can attract.

DNA forensic science continued to play a critical role in the resolution of crime this year.

The most prominent case to be closed was the abduction, sexual violation and murder of six-year-old Napier girl Teresa Cormack in 1987. Samples taken from Teresa's body matched DNA from Lower Hutt man Jules Mikus, who was found guilty of the crimes in October.

The verdict justified the commitment over 15 years of current and former Police staff involved in the inquiry, who had never given up hope that the person responsible for Teresa's death would be found. This resolution underscores the commitment by Police to solve serious crimes.

Another case that was successfully resolved was the attempted kidnapping of a prominent Wellington businessman in July. Two men were found guilty of the crime in June after Police foiled their plan to hold the man in a plywood box buried in Upper Hutt's Tunnel Gully.

The manufacture and use of methamphetamine was a continuing deep concern for Police during the year. The number of clandestine laboratories detected and disrupted rose to 154 - 88 more than the previous year.

Anecdotally, methamphetamine became a prime contributor to more incidents of psychotic and extremely violent behaviour.

These drugs are a scourge, and will devastate many lives. Police has dedicated more resources to detecting clandestine labs, and we take seriously our responsibility to apprehend those who seek to profit from others' misery.

National Results

Nationally, we achieved some notable results this year.

I was heartened that we recorded an overall resolution rate of 43.7% - the highest for 20 years.

Proactive policing initiatives in part contributed to the 2.5% rise in reported crime.

We made good gains with these initiatives. While tougher enforcement bumped up the figures, strictly enforcing bail and curfews to ensure compliance, enforcing licensing laws and public place liquor bans, and closely monitoring truancy did improve community safety.

Other pleasing results included a 6% drop in sexual offences; ten fewer murders than the year before; increased reporting of family violence; and a 2% drop in drink drive offences.

High-visibility, consistent road safety enforcement - the basis of the general deterrence approach - contributed to the lowest road toll since records began. In the last calendar year 416 people died, compared with 430 the previous year.

Speed, alcohol, intersection and restraint enforcement have all played a part in making the roads safer.

The Land Transport (Unauthorised Street and Drag Racing) Amendment Act 2003, which came into force on 1 May, gave Police powers to deal with 'boy racers' involved in illegal street racing. Early indications are that it will be an effective means of preventing this public nuisance.

Organisational Progress

Organisationally, we made good progress too.

We published a Statement of Intent, which set out our medium-term strategy objectives. It identified what we need to do to achieve the strategic goals set out in the Police Strategic Plan to 2006, and the wider goals of government and sector partners. Work began on implementing the goals in the operational setting.

In consultation with their communities, District Commanders began to develop plans to produce tangible gains in community safety and crime reduction built around the six national priorities of violence, burglary, vehicle crime, organised crime, national security and road safety.

Developing leadership and management skills among Police staff is an important factor in improving community safety and reducing crime. Several staff took up experiential learning opportunities offered through the newly introduced secondment programme, which offers placements within the public and private sectors here and overseas.

The Mäori, Pacific and Ethnic Services (MPES) group was formed, and began to provide strategic advice and support to districts and to the Office of the Commissioner. MPES staff also started the important work of forging partnerships with relevant agencies and communities around the country and internationally.

On the information and technology front, we completed several major projects. These were a combination of re-building the computing, network and radio infrastructures; upgrading computing training facilities; and completing the first three phases of shifting from the Law Enforcement System (also known as LES, or the Wanganui computer). Moving from LES will see the National Information Application (NIA) become the main policing information system.

Auckland Issues

We continued to grapple with the policing challenges presented by Auckland's population growth and changing demographics.

Operation Cavalry saw staff from around the country seconded to Auckland City and Counties Manukau Districts for short periods to relieve some of the pressures on local staff. Investigators from outside Auckland also helped Counties Manukau District reduce its level of outstanding inquiry files.

A Board of Management comprising the three Auckland District Commanders developed a series of joint operations to make the most effective use of resources.

Staff mounted successful tri-district operations dealing with truancy and boy racers towards the end of the year. These were some of the projects planned to improve policing in Auckland.

We put a lot of effort into boosting staff numbers across Auckland, and thanks to three recruiting initiatives, the districts were up to target strength at year end. A successful recruiting drive in the United Kingdom attracted 74 experienced Police Officers, while a pilot trainee scheme for 17 to 22 year-olds got underway at the Manukau Technical Institute. Regular recruiting activities also helped the region reach target strength.

More resources were allocated to Auckland in this year's Budget to fund extra incident response and investigative staff, and DNA collection teams. They will begin in the new financial year.

Private Prosecution

And finally, this year brought some resolution for Senior Constable Keith Abbott. In December, he was acquitted of murder following a private prosecution taken by the family of Waitara man Steven Wallace, who continue to grieve the sad loss of their son.

It was a defining moment for the officer and his colleagues, and he earned my utmost admiration for the way he conducted himself throughout the ordeal.

After the verdict, I assured all Police Officers that the Commissioners would support them if they were required to take a life in the course of their duties while acting lawfully and in self-defence.

Conclusion

New Zealand Police staff have worked hard to achieve the results I have mentioned. I am grateful that they have risen so readily to meet the challenges of the shifting domestic and international environment, and I thank each one of them for their contribution.

Rob Robinson

Commissioner of Police

Achievement of Key Priority Areas

Police Key Priority Areas

Police operationalises the Police Strategic Plan goals through specific strategies and programmes referred to as Key Priority Areas (KPAs). Police's KPAs for 2002/2003 were:

Key Priority 1: Reduce offending and victimisation involving Mäori

The aim of this priority area, in 2002/2003, was to ensure that Police met its obligations and commitments to Mäori communities. There was a particular emphasis on giving Mäori communities a mechanism to develop individual, group and community safety through involvement in Police decision making.

Through continued emphasis on strategies focused on improving Police Responsiveness to Mäori (RTM), Police, in partnership with other government agencies and community groups, achieved the objectives outlined in the following table:

Key Priority 1A: Reduce offending and victimisation involving Pacific Peoples

Police is committed to contributing to Government's goal of reducing inequalities. In regard to Pacific Peoples, Police's emphasis in 2002/2003 was on developing mechanisms and programmes of action that focus on building or enhancing the relationship between Police and Pacific communities.

In 2002/2003, Police focused on developing and implementing strategies that reduced the incidence and effects of crime on Pacific Peoples.

Key Priority 2: Increase Community Safety

The Police Strategic Plan identifies a path where all New Zealanders contribute to safer communities by actively taking a role in community safety. Police's role in achieving the goal of community safety is to focus resources on core safety, security and emergency response functions. Improvements have been made in road safety over recent years, for example the rebranding of the Traffic Safety Branch as the Road Policing Branch. Police has continued to build on the significant community safety results achieved through dedicated resources. In 2002/2003 Police engaged communities, non-government organisations and agencies in a collaborative way to address community safety issues more effectively.

By identifying safety priorities through consultation with the community and alignment with sector-wide objectives, Police targeted the community safety outcomes identified in the following table:

Key Priority 3: Reduce Crime

This key priority details the operational focus on reducing the incidence of crime and its impact on New Zealanders. Police is committed to reducing dwelling burglary, violent crime (particularly family violence), and youth and organised crime. Improvements have been made in many of these areas in recent years. 2002/2003 continued an emphasis on maintaining the reduced levels of recorded crime. Added emphasis has been placed on violent crime in 2002/2003, highlighted by the development of a national strategy for policing violent offending. In each of these areas major strategy statements guide the research, planning and implementation of Police interventions. Police has focused on increased cooperation and coordination between agencies to address these problems. Police has set crime reduction targets in accordance with Government's Crime Reduction Strategy to provide focus on the results sought.

Key Priority 4: Develop Police Capability

This key priority focuses on building an organisation that is recognised as effective and highly capable, known for its integrity, and acknowledged as a leading state sector organisation.

In particular, Police seeks to:

• Understand and build better community responsiveness

• Develop performance and management accountability through the implementation of the Police HR Strategy, which seeks to create an environment that is focused on developing staff capability and diversity.

Community policing remained the dominant style in an environment that seeks flexibility in resource deployment to ensure service delivery meets the demands of a changing New Zealand demographic profile.

Police objectives in regard to building Police capability in 2002/2003 in the following table were drawn from the Police Strategic Plan.

Reducing Inequalities,

and Equal Employment Opportunities Reports

Reducing Inequalities

Note: This report incorporates the Equal Employment Opportunities (EEO) and Diversity Achievements Report.

Sector Description

The justice sector has a number of areas in which inequalities are evident. For Police, such inequalities manifest themselves in the disproportionate victimisation and apprehension rates for both Mäori and Pacific Peoples in terms of their populations within New Zealand. This is of particular concern in relation to young people, and needs to be addressed by a government-wide approach as well as within individual components of the justice sector, including Police.

Mäori are over-represented in criminal justice apprehension, prosecution and conviction statistics. Mäori women are 10.5 times more likely to be serving a sentence of imprisonment than non-Mäori women and a Mäori man 7.6 times more likely than a non-Mäori man. Mäori women and men make up over 50% of the prison population and are more likely to be apprehended for a criminal offence than non-Mäori. Victim surveys also show that Mäori are more likely to be the victims of assaults and threats than non-Mäori and also more likely to be repeat victims.

Pacific Peoples are also over-represented in the prison population. Violence comprises over one-third of all offending by Pacific Peoples. Pacific Peoples were also amongst groups most likely to be repeat victims of assault.

The Police vision of 'Safer Communities Together' requires Police to operate as part of our communities, with a focus on their engagement and development to support and achieve this vision.

In addition to focusing on reducing inequalities amongst Mäori communities, Pacific communities, young people and women, Police applies a cross-justice sector and a whole-of-government approach.

Overview

Police specifically acknowledges its Treaty of Waitangi obligations and partnership with Mäori as tangata whenua, and during 2002/2003 continued to build on the solid relationships already established with Mäori at a national level and in local communities.

Police has identified the strategic context of growing the relationship with Mäori, Pacific and ethnic communities, with a particular commitment to developing and implementing solutions to community safety problems and reducing crime within these communities. Key initiatives designed to support this approach include:

• The establishment of a national office for Mäori, Pacific and Ethnic Services (MPES) reporting direct to the Commissioner, to have oversight and responsibility for advising on, monitoring and coordinating the implementation of the Mäori and Pacific Peoples' responsiveness strategies and the development of ethnic-wide policy and strategy (refer to diagram above).

• The review and redevelopment of the Responsiveness to Mäori (RTM) Strategy that addresses offending, reoffending and victimisation of Mäori.

• The development and implementation of a strategic framework (Pacific Peoples' Responsiveness Strategy (PPRS)) that addresses offending and victimisation in Pacific communities. This strategy was approved by the Police Executive Committee for implementation in December 2002.

In carrying out these activities Police maintains relationships with a wide range of government agencies as well as local government, non-government organisations and community groups. Police is also mindful of the need to build organisational capability through training.

Key Policies and Programmes - Mäori

In 2001 and 2002, Te Puni Kökiri carried out an agency review of Police. The review aimed to investigate the contribution Police had been making to improving outcomes for Mäori, and to report in a manner that would help Police improve its responsiveness to Mäori.

The review found that, overall, Police had made substantial progress in developing relationships with Mäori communities and building internal capability to deliver responsive services to Mäori. The report identified five categories in which a substantive number of recommendations for refinement were made. In the following section these categories (Strategy, Planning and Reporting, Service Delivery and Programmes, Increasing Organisational Capability, Information Collection and Relationships) are used to group and highlight achievements made by Police over the 2002/2003 period.

Strategy, Planning and Reporting

In November 2002 Police established a national office for Mäori, Pacific and Ethnic Services (MPES) as referred to above.

RTM has been integrated into existing strategic frameworks and business planning documents at both district and national levels. Te Puni Kökiri described Police as having established a specialist Mäori infrastructure. Police believe that this infrastructure, and its ongoing refinement, provides the basis to work collaboratively with Mäori, other key stakeholders and partners.

A range of strategy, structural and performance changes within Police, combined with the Review findings and recommendations focused MPES on a review and intended redraft of Haere Whakamua (Moving Forward), the Police RTM Strategy. The enhanced strategy will assist and guide all facets of Police business to be responsive to Mäori and to translate specialist Mäori infrastructure into actual crime reduction and community safety outcomes.

RTM has been included in performance management systems and District Commanders' performance agreements. During the 2002/2003 period and as part of HR development a Treaty of Waitangi core value has been identified for inclusion in the new HR Competency Framework. This provides the framework for developing Mäori responsiveness competencies for all positions within Police particularly those with responsibility for delivering service to Mäori.

Service Delivery and Programmes

A number of national and district RTM programmes were established in partnership with Mäori to enhance service delivery. Including:

Increasing Organisational Capability

Increasing operational capability is the primary focus of all TSC activity, both at the Royal New Zealand Police College (RNZPC) and throughout Police. The Treaty of Waitangi principles were integrated throughout all training curriculum processes, and this was a key focus of the Kaiwawao position (RTM Coordinator) during 2002/2003.

Achievements during the year included:

TSC staff based in the districts provided support and assistance to district Iwi Liaison Officers in planning and coordinating RTM training opportunities. District trainers also assisted with district Treaty of Waitangi workshops and with courses to introduce district staff to te reo. Central District continues to provide comprehensive training on protocols associated with Mäori sudden deaths, which it delivered in Central and Wellington Districts and to recruits at the RNZPC.

Information Collection

An information strategy is being developed by the Organisational Performance Group and MPES to improve Mäori data collection. Better data will inform Police strategies for reducing offending and victimisation of Mäori.

Three districts are trialling a programme to capture iwi and hapü data at the point of arrest / apprehension to inform preventative and rehabilitative programmes developed in conjunction with Mäori.

Relationships

A number of structures have been implemented to ensure Mäori are involved at both strategic and operational planning levels. Districts have established advisory groups to assist with reducing offending, reoffending and victimisation amongst Mäori. Some districts have formalised their relationships with Mäori by signing memoranda of understanding (MOUs) with hapü and iwi within their districts. These formal agreements have complemented face-to-face (kanohi ki te kanohi) contact with Police and Mäori and continue to reinforce the commitment both groups have to each other.

Police has made significant progress in developing relationships and consultation processes with Mäori, local hapü and whänau. Some districts they have evolved systems for timely advice and assistance to resolve or support matters of importance to Mäori.

At a national level the Commissioner's Mäori Focus Forum met three times in 2002/2003 and continued to advise the Board of Commissioners on key strategic and national issues for Mäori. The forum has links through its membership to almost all of the district advisory groups.

Key Policies and Programmes - Pacific

In 2000 Police committed to achieving 44 programmes of action as part of the Ministry of Pacific Island Affairs Pacific Capacity Building Programme framework. During 2002/2003, Police integrated the Pacific Peoples Responsiveness Strategy (PPRS) into strategic frameworks and business planning documents at both district and national levels. Programmes and policies have focused on building the capability to be responsive, and on developing and implementing targeted initiatives to bring the voice of Pacific Peoples into Police. Progress was made in establishing two-way relationships with communities in all districts with significant populations of Pacific Peoples.

A feature of the PPRS is bringing the voice of Pacific women into decision making, with the continued involvement of Pacifica Women's and Pacific Island Women's Project in the development and delivery of strategies involving Pacific Peoples.

Inter-Agency Collaboration

Police participated in a number of inter-agency initiatives:

Increasing Organisational Capability

A key focus during 2002/2003 was to integrate components of the PPRS into the training activity at the RNZPC. Achievements during the year included:

Initiatives for Other Ethnicities

Language Line

Police is involved in an inter-agency initiative to provide a telephone interpreting service to non-English-speaking people in New Zealand. In situations requiring communication between Police and a non-English-speaking person, a Police Officer may contact the Language Line. The Language Line offers telephone-interpreting services in 35 different languages. The pilot of the Language Line commenced on 30 April 2003 and will continue for a year, after which time the service will be evaluated.

Services Focused on Children and Young People

Youth Offending Strategy

In April 2002 the Minister of Justice released the Ministerial Task Force Report on Youth Offending and a Youth Offending Strategy with the aim of "preventing and reducing offending, and reoffending by children and young people".

The Youth Offending Strategy is significant for Mäori and Pacific Peoples as Mäori children and young people are over-represented in the youth justice system while Pacific Island children and young people are over-represented in the area of violent offending.

As a result of the strategy, Youth Offending Teams (YOTs) have been established throughout New Zealand. YOTs include representatives from Police, Department of Child, Youth and Family (CYF), the Ministry of Education and the Ministry of Health. The purpose of the YOT is to improve coordination and collaboration amongst the agencies that deal with children and young people who have offended or who are at risk of offending.

At a national level a Youth Justice Leadership Group (YJLG) was established to monitor and report quarterly on the performance of the local YOTs and the implementation of the Youth Offending Strategy.

There is also an Independent Advisory Group (IAG) that is chaired by the Principal Youth Court Judge and whose members are youth justice practitioners from a range of services.

Youth Justice Leadership Group (YJLG)

Neither the YJLG nor the YOTs are consultation forums. As with the YOTs, the key membership requirement for the YJLG is appropriate professional knowledge and direct accountability for the necessary actions.

Police is endeavouring to integrate Mäori and Pacific perspectives into the thinking of the YJLG through:

• Individual YJLG and YOT agency practice to ensure the responsiveness of its representatives to Mäori and Pacific perspectives and issues

• YOT links to appropriate community representatives and networks

• Representation of Mäori and Pacific perspectives on the IAG

• Oversight and input from Te Puni Kökiri and the Ministry of Pacific Island Affairs.

Inter-Agency Collaboration

The YJLG met at least six-monthly with Te Puni Kökiri and the Ministries of Pacific Island Affairs and Youth Affairs.

The YJLG will coordinate the justice sector / individual agency responses as appropriate. The lead agency will ensure that the wider sector has the opportunity to comment on any advice before it was submitted to the YJLG for Ministers.

Both the YJLG and the IAG report to the Ministers' Group, comprising of the Ministers of Justice, Social Services and Employment. The Ministers of Police, Courts, Education, Health, Mäori Affairs, Pacific Island Affairs and Youth Affairs are consulted as appropriate.

Police Services

Police delivered services for children and young people to achieve the following outcomes:

• Enhanced safety of children and young people

• Children and young people prevented from offending and reoffending

• Children and young people who do offend held accountable

• Children and young people prevented from becoming victims of crime.

Services included:

• Youth crime prevention

• School education services and school road safety education

• Youth Aid

• Youth prosecutions and alternatives to prosecution

• Support to Family Group Conferences

• Youth Development programmes

• School Road Safety Education.

These services were based on working closely with young people, their (extended) whänau / aiga / family and their communities in prevention, early intervention and response to offending and victimisation. Although there are common elements to the provision of such services, other aspects differ markedly between districts due to the diverse nature of New Zealand society. An evaluation of the Kia Kaha (Stand Strong) programmes by the Education Review Office (ERO) indicated that the objectives of the Police Youth Education Service fit well with Police strategic goals and are highly valued by schools.

Youth Development Programmes

In addition to these routine services, Police delivers a number of Youth Development programmes. Although not specifically directed at Mäori or Pacific young people, both groups are strongly represented among the young people on the programmes. Individual districts also involve young people who are 'at risk' in various projects and activities.

Key Factors

The key factors for Police in the success of the programmes and initiatives were:

• Targeting (the client is recidivist and / or with a high level of risk / need)

• Case-managing (case worker assigned to client / family)

• Focused on the family

• Taking an inter-agency and community-based approach

• Adopting a lead agency role.

Youth at Risk Outcome Evaluation

An evaluation report investigating three-year outcomes of 14 Police Youth at Risk programmes that were part of the EF1997 Crime Prevention Package was released in May 2003. Overall, results indicated that the greatest successes in reducing the needs and offending of young people occurred in those young people referred to the programme by Police who had a high level of need and were involved with the programme for at least a year with a minimum of 50 interactions. The community approach model, on which 11 of the 14 programmes were based, was found to be the most effective model in reducing the offending-related needs of young people.

75% to 80% of young people who offend were dealt with by way of warning or alternative action (diversion) thus giving whänau / aiga / families the opportunity to be involved in making decisions, and dealing with their children's offending.

Increasing Organisational Capability

In 2003, Police held training across the country for youth justice professionals from Police and CYF to improve outcomes for young people who come into conflict with the law.

Police also recognises the detrimental effect child abuse has on the development of children and young people. Police's specially trained child abuse investigators worked closely with welfare agencies to detect and investigate child abuse, and to prosecute those responsible. Victims of child abuse continued to receive professional assistance for their recovery and rehabilitation. The TSC worked with CYF during 2002/2003 to develop training packages to improve outcomes for youth:

Family Violence

Family violence can be described as gender-based crime - with women being disproportionately represented as victims of family violence. Police is often the first line of crisis intervention when family violence occurs. In 2002/2003, the Police Family Violence Policy continued to provide guidance to all frontline staff on the high priority that should be accorded to family violence complaints, and the way in which Te Rito (New Zealand's Family Violence Prevention Strategy) outlines how Police works with other justice sector partners.

The Treaty of Waitangi provides for a unique relationship between Mäori and the Crown. In recognition of this and their status as tangata whenua Police recognises that it is important to approach family violence prevention with the special needs and interests of whänau, hapü and iwi in mind. Police also continued to contribute to the framework for preventing family violence in Pacific communities.

In 2002/2003, Police drafted a National Violence Reduction Plan (to 2006), which focuses upon three themes - Safer Homes, Safer Streets and Safer Schools. The Safer Homes strategy focuses on improving existing family violence policies and practices, internal data collection and information management, as well as enhancing Te Rito partnerships.

Other Initiatives

People with Disabilities' Satisfaction with Police Services

Police surveyed people with disabilities' perception of Police and satisfaction with Police services across a number of dimensions. In general, the feedback from participants was positive in relation to their perceptions of Police, the information they received from Police and, with the exception of mental health consumers, the satisfaction they had with any contact with Police. Participants identified barriers to accessing Police services and suggestions for removing these barriers and making Police more responsive to the needs of people with disabilities. The major barriers identified were communication and Police perception of people with disabilities.

EEO and Diversity Achievements

National Major Areas of Focus for 2002/2003

People in Policing: A Five Year HR Strategy to 2006 signals a longer-term focus on the important matters that face everyone in Police and re-affirms the commitment to Police values. The strategy looks to encourage a flexible, diverse and adaptive workforce capable of meeting future needs, including the needs of individuals within the organisation.

The Strategy contributes to reducing inequalities for disadvantaged groups generally, (Mäori and Pacific Peoples specifically) and advances the establishment of a Police environment that recognises and meets EEO, Mäori Responsiveness and diversity needs. The strategy acknowledges the culturally diverse nature of New Zealand society, and confirms Police's commitment to encourage diversity in its staff to ensure that all ethnic groups are represented. EEO and diversity have been integrated into all human resources, policies and practices where the achievement of results were assigned as national, district and individual responsibilities.

Recruitment and Appointment

Police continued with recruitment strategies designed to attract Mäori, Pacific and Asian Peoples:

In 2002/2003, Police also employed additional recruitment strategies:

These initiatives were supported by the Iwi Liaison Officer (ILO) and Pacific Peoples Liaison Officer (PPLO) networks. Liaison Officers have been appointed in two districts to date to encourage Asian peoples to join Police.

EEO and Diversity Progress 2002/2003

Police has achieved the following results against the specific EEO and diversity targets for 2010 and 2005:

Changes in the past 12 months show that Mäori staff increased by 0.4%, sworn women remained at the same level and Pacific staff increased by 0.1%.

With regard to senior management positions, there was an improvement in Mäori representation with an increase of 2.9%, and Pacific Peoples' representation with an increase of 4.1%. The percentage of senior women decreased by 1.1%.

These targets were monitored on a monthly basis through the national HR scorecard. In addition to these monthly measures, Police participated in the:

• State Services Commission's annual EEO assessment, and

• EEO Trust Employers' Group Survey.

Effective Consultation with and Representation by Women

In order to improve the degree of consultation with and representation by women, Police:

• Contributed to the Commissioners' Australasian Women in Policing Advisory Committee (CAWIPAC), the primary advisory group to Commissioners on issues relating to women in Australasian policing jurisdictions. Primary work included developing a benchmarking template and revising the strategic plan and reporting system.

• Scoped mentoring programmes and considered the recommendations.

• Continued to support the National Women's Consultative Committee (NWCC), which represents sworn and non-sworn women across Police. Work included providing input into EEO and diversity strategies and policies, the Work and Family project, and making submissions to appropriate bodies.

• Supported Women's Consultative Committees / Networks / EEO Committees in each district, with formal structures, terms of reference, budgets and communication and strategic plans. Some committees also have representatives on district management teams.

• Ensured that there were designated EEO and diversity portfolio holders within each district. District activities were supported by EEO Committees, EEO Liaison Officers and Women's Network activities.

Women's Network

A Women's Network has been running at the RNZPC for a number of years, providing an advisory and support network for women. During 2002/2003 two career evenings were organised for female recruits where policewomen working in different fields shared their experiences and talked about opportunities within Police.

Review and Develop Policies, Procedures and Strategies

Awareness and Education

Elimination of Discriminatory Practices

A total of 15 sexual harassment complaints was made using the Sexual Harassment Policy process between 1 July 2002 and 30 June 2003. To reduce the incidence of sexual harassment in Police:

Support of Staff with Disabilities

Conclusion

The 2002/2003 Police Reducing Inequalities report includes a wide range of measures directed at enhancing the ways in which Police works with particular groups in the community, and most notably, how Police aims to improve its relationships with Mäori, Pacific Peoples, and other ethnic communities. The targets and milestones identified above provide not only goals against which Police can measure progress, but also a challenge to encourage continued action.

Summary of Costs

A summary of costs was as follows:

Statement of Objectives and Service Performance

New Zealand Police Financial Statements

for the Year Ended 30 June 2003

Statement of Responsibility

As the Commissioner of Police, I am responsible for the preparation of Police's financial statements and the assessments made in the process of producing those statements under terms of sections 35 and 37 of the Public Finance Act 1989.

I have fulfilled my responsibility to establish and maintain systems of internal control procedures that provide reasonable assurance as to the integrity and reliability of financial reporting.

The financial statements have allocated costs to output classes in accordance with the relevant accounting policy. I am of the opinion that specific controls, policies and procedures that have been instigated minimise the risks inherent in time recording systems. Further I am of the opinion that any errors would not have a material effect on the costs allocated to output classes and reported here.

In my opinion, these financial statements fairly reflect the financial position and operations of New Zealand Police for the year ended 30 June 2003, and I authorise issuance of these financial statements on 30 September 2003.

R J Robinson

Commissioner of Police

30 September 2003

Countersigned by:

B R Simpson

General Manager: Finance

Statement of Objectives and Service Performance

for the Year Ended 30 June 2003

OUTPUT CLASS ONE - Policy Advice and Ministerial Servicing

Output Class Description

This output class includes the purchase of policy outputs that involve the identification of problems and definitions, researching and monitoring of current practices, analysing options, writing, discussing, negotiating or issuing instructions about a policy issue. It also includes services to the Office of the Minister of Police, such as responses to ministerial correspondence, answers to written questions in the House, speech drafts and other ministerial advice as well as advice or responses provided to other government agencies and departments. Included also is policy advice on policing in the South Pacific.

Outputs purchased within this class

Output 1.1 - Policy Advice

This output covers the provision of policy advice on policing and advice on proposed legislation affecting Police and the criminal justice sector.

Outcome

Increased community safety and crime reduction

Performance Measures

Output 1.2 - Ministerial Support

This output covers the services of the Ministerial Services Group as well as researching and drafting of ministerial correspondence. It also covers the provision of draft responses to written and oral questions from the House.

Outcome

Increased community safety and crime reduction

Performance Measures

Output 1.3 - Policy Development for South Pacific

This output covers the provision of policy advice on policing in the South Pacific and includes permanent secretarial support to the South Pacific Chiefs of Police Conference.

Outcome

Increased regional security

Performance Measures

Output Class Statement: Policy Advice and Ministerial Servicing

for the Year Ended 30 June 2003

OUTPUT CLASS TWO - Policing Support to the Community Through Partnerships, Education, Crime Prevention and Youth Programmes

Output Class Description

This output class includes the delivery of services within the community which are designed to prevent crime. Services include crime prevention awareness, delivery of Police youth education services, coordinated crime prevention programmes, Youth Aid services, non-sworn youth workers and Police programmes and strategies in partnership with community groups.

Outputs purchased within this class

2.1 - Police Programmes and Strategies in Partnership with Community Groups

This output covers the establishment of programmes and the pursuit of strategies in partnership with government agencies, local authorities and other community groups to address crime-related problems in the community. It also covers the provision of administrative and logistic support to community groups including Victim Support, Neighbourhood Support groups and community initiated patrols.

Outcome

Increased community capability to respond to crime and unsafe behaviour

Performance Measures

Output 2.2 - Provision of Crime Prevention Information, Education and Advice

This output covers public awareness and officer / public contacts for community information purposes and crime prevention advice. It includes advice to the public or the business community, informal advice by telephone, general talks and media articles to promote awareness of individual or community safety and security issues.

Outcome

Increased community capability to respond to crime and unsafe behaviour

Performance Measures

2.3 - Youth Crime Prevention Activities

This output covers proactive youth crime prevention activities, targeted programmes and proactive programmes by officers dealing with youth at risk, either in Police programmes or jointly with other agencies. Programmes are directed towards preventing youth involvement in crime, or towards ensuring that young persons who have offended do not reoffend. It does not include officers' time when dealing with actual criminal cases including juvenile offenders - this is covered in Output Class 5.

Outcome

Reduced youth offending, especially repeat youth offending

Performance Measures

2.4 - School Education Services

This output covers Youth Education Services through formal school visits to educate children on proactive ways of keeping themselves safe, and other crime prevention and drug resistance programmes. It also includes the development of new programmes.

Outcome

A reduction in crime victimisation and increased safety for children and young persons

Performance Measures

Output Class Statement: Policing Support to the Community Through Partnerships, Education, Crime Prevention and Youth Programmes

for the Year Ended 30 June 2003

OUTPUT CLASS THREE - Directed Patrol Activities

Output Class Description

This output class includes the delivery of foot and mobile patrol activities. Services provided under this output class are managed through Risk Targeted Patrol Planning, which includes a risk assessment process focused on delivering a visible Police presence to persons and areas considered to be at greatest risk from criminal offending. Police patrols undertake numerous activities including interaction with members of the public, monitoring property, inspection of licensed premises, high-visibility policing where members of the public congregate, and actions taken in regard to suspicious persons or vehicles.

Output purchased within this class

Output 3.1 - Directed Patrols

This output covers delivery of foot and mobile patrol activities as described above.

Outcome

Crime deterrence, and increased public safety

Performance Measures

Output Class Statement: Directed Patrol Activities

for the Year Ended 30 June 2003

OUTPUT CLASS FOUR - Police Primary Response Management

Output Class Description

This output class includes the initial response of Police to calls for assistance including emergency responses and the purchase of a capability to respond. The output class also includes the dispatch of response vehicles and the completion of a number of calls for the provision of advice and information. The output class includes services to search and rescue (SAR).

The output class also covers the management of cases and incidents until either the matter is forwarded for further investigation, the matter is forwarded to a resolution process such as prosecution or the case is closed.

Outputs purchased within this class

Output 4.1 - Provision of Specialised Operational Capability

This output covers the maintenance of operational readiness over and above that required for routine operational duty. It includes specialist training for Armed Offenders Squads, Special Tactics Group, Search and Rescue Squads, Police Negotiators Teams, Specialist Search Group, National Dive Squad and Disaster Victim Identification Teams, and operational readiness testing for these groups.

Outcome

Capability to respond to emergency calls for assistance

Performance Measures

Output 4.2 - Communications Centres

This output covers the three Police Communications Centres which receive and manage calls for service from the public through to the dispatch of patrols, specialist groups or other emergency services, and the completion of a number of calls by the provision of advice and information.

Outcomes

Increased community safety

Increased trust and confidence in Police

Performance Measures

Output 4.3 - Emergency Response

This output covers services to calls for immediate response. The activities covered include services provided in response to situations where there is a threat to life and/or property, or the likelihood of apprehension of an offender. (This output does not include services provided in response to traffic crashes - see Output 12.2.)

Outcomes

Increased community safety

Reduction in the fear of crime

Performance Measures

Output 4.4 - Initial Attendance and Early Case Management

This output covers the initial attendance of Police to a call for service where the service does not require an emergency response. It covers those calls for service where attendance is sufficient to resolve the issue. This output also covers incidental arrests by patrols and in these instances includes the preparation of files for final case resolution. In other circumstances, e.g. reported crimes, it covers the time until a case is submitted for a decision to be made for further action or investigation.

Outcome

Increased community safety

Increased confidence in Police capability to respond

Output Class Statement: Police Primary Response Management

for the Year Ended 30 June 2003

OUTPUT CLASS FIVE - Case Management

Output Class Description

This output class includes the purchase of a variety of investigative services from Police. Case management investigations either arise from a call for service in relation to an incident or reported crime, or may be initiated by Police. The services provided cover matters that require a continued response after the initial call or Police activity, through to preparation of files for final case resolution. Case management activities include such matters as scene examination; preservation and forensic analysis of evidence; the collection and analysis of intelligence; inquiry with witnesses and other persons; special investigative operations; execution of search warrants; apprehending and interviewing of offenders; and victim support.

The class also includes activities undertaken by Police relating to enforcing orders under the Children, Young Persons and Their Families Act 1989 and action against persons in breach of bail conditions or other offences involving the administration of justice.

Outputs purchased within this class

Output 5.1 - Crime and Offence Case Investigation

This output covers a variety of investigative services that follow from initial Police attendance and early case management of reported crimes. It also includes activity resulting from Police-initiated investigations. It further covers arrests resulting from these investigations through to the preparation of files for final case resolution, whether by prosecution or by Police diversion.

Outcome

Increased personal and property security

Performance Measures

Output 5.2 - Other Case Management

This output covers calls for service that require investigation but do not fall within a crime category or early case management. Examples would include missing persons, sudden deaths and activities undertaken in dealing with persons affected by mental illness.

Outcome

Enhanced community safety

Performance Measures

Output 5.3 - Police Internal Investigations

This output includes the maintenance of a competent investigative capability through the investigation of complaints made against Police by members of the public. It also supports the function of the Police Complaints Authority (PCA).

Outcome

Maintenance of ethical standards and integrity in Police

Performance Measures

Output Class Statement: Case Management

for the Year Ended 30 June 2003

OUTPUT CLASS SIX - Case Resolution

Output Class Description

This output class includes the purchase of services focused towards the resolution of cases. This includes providing services to prosecute offenders in the criminal court. It also includes the resolution of other criminal offending cases by preparation for, consultation on and attendance at Family Group Conferences (FGCs) and the preparation for, consultation on and delivery of Police diversion schemes. This class of outputs also includes the resolution of non-criminal cases such as services to the coroner.

Outputs purchased within this class

Output 6.1 - Police Prosecutions and Diversions

This output covers Police prosecutors' time in preparing cases for Court and preparing for and consulting with case managers on Police diversion schemes.

Outcome

Timely, fair, efficient and effective resolution of cases in the public interest

Performance Measures

Output 6.2 - Police Support to Family Group Conferences

This output covers the resolution of other criminal offending cases by preparation for, consultation on and attendance at FGCs pursuant to the Children, Young Persons and Their Families Act 1989.

Outcome

Reduced offending and recidivism by young offenders

Performance Measures

Output 6.3 - Support to the Coroner

This output covers support to the coroner, other than a witness, to enable resolution of coroners' inquests.

Outcome

Timely, fair, efficient and effective resolution of cases in the public interest

Performance Measures

Output Class Statement: Case Resolution

for the Year Ended 30 June 2003

OUTPUT CLASS SEVEN - Enforcement of Court Orders

Output Class Description

This output class includes the delivery of services which have been authorised by the issuing of a notice, instruction, order or warrant from a legislated authority. It includes the execution of warrants to arrest and fines warrants, investigations and arrests for breaches of home detention conditions as required, the delivery of summonses and other minor offence notices with the exception of those generated under the Transport Act 1962 and Land Transport Act 1998.

Output purchased within this class

Output 7.1 - Execution of Court Summonses, Arrest or Fines Warrants and Breaches of Home Detention Conditions

This output covers the delivery of services which have been authorised by the issue of a notice, instruction, order or warrant from a legislated authority. It includes the execution of warrants to arrest, fines warrants and breaches of home detention conditions as required, the serving of summonses and other minor offence notices with the exception of those generated under the Transport Act 1962 and the Land Transport Act 1998.

Outcome

Increased personal safety and property security

Performance Measures

Output Class Statement: Enforcement of Court Orders

for the Year Ended 30 June 2003

OUTPUT CLASS EIGHT - Custodial and Escort Services

Output Class Description

This output class includes services associated with holding of persons in Police cells following arrest or the requirement to hold remand or sentenced prisoners. It also includes the care, and when necessary temporary custody, of persons with mental health problems. This output class also involves providing services related to the transport of Police arrests to Court or remand and sentenced prisoners, or to a penal institution. It also covers the escort of persons with mental disability.

Outputs purchased within this class

Output 8.1 - Police Custody

This output covers holding of persons in Police cells following arrest, and includes holding of remand or sentenced prisoners.

Outcome

Enhanced personal safety of persons in Police custody

Performance Measures

Output 8.2 - Custody of Mentally Disabled

This output covers the care, and when necessary custody, of persons with mental disability.

Outcome

Enhanced personal safety of persons in Police custody

Performance Measures

Output 8.3 - Escort of Arrested, Remand and Sentenced Prisoners

This output covers the escort of arrested, remand and sentenced prisoners as directed by the Court.

Outcome

Enhanced personal safety of persons in Police custody

Performance Measures

Output 8.4 - Escort of Mentally Disordered / Psychiatric Persons

This output covers the assistance provided to mental health service providers in escorting persons suffering from mental disability.

Outcome

Enhanced personal safety of persons in Police custody

Performance Measures

Output Class Statement: Custodial and Escort Services

for the Year Ended 30 June 2003

OUTPUT CLASS NINE - Public and Personal Security

Output Class Description

This output class includes the purchase of security services to prevent disorder and disturbances at demonstrations and public entertainment events; security services provided for VIPs or other individuals and groups within the community; and airport and Court security. It also involves the deployment of staff overseas for purposes agreed between the New Zealand Government, the United Nations and international agencies or countries. It includes capability training to meet the requirements of deployment and the provision of any additional training required to meet any special or higher-than-estimated operational demand levels.

Outputs purchased within this class

Output 9.1 - Maintenance of Order at Demonstrations

This output covers operational duties focused on the maintenance of public order and preventing breaches of the peace at demonstrations.

Outcome

Public order maintained

Performance Measures

Output 9.2 - Maintenance of Order at Public Events

This output covers Police pre-planned delivery of services at events, such as crowd control, dealing with lost children, public relations etc.

Outcome

Provision of a safe environment

Performance Measures

Output 9.3 - Personal Security Operations

This output covers security services provided for VIPs, diplomat protection security and witness protection services.

Outcome

Protection of life and property of individuals

Performance Measures

Output 9.4 - Airport Security

This output covers the services provided, as required by international agreement, to attend all international flight movements with a minimum of two officers, at terminals declared international airports.

Outcome

Prevention of crime, enhanced public safety

Performance Measures

Output 9.5 - Court Security

This output covers services providing security as required. It covers security for all Court staff, witnesses and accused persons.

Outcome

Provision of a safe environment

Performance Measures

Output 9.6 - Staff Deployment Overseas

This output covers the requirements of training and deployment of staff overseas.

Outcome

Increased security in area of deployment

Performance Measures

Output Class Statement: Public and Personal Security

for the Year Ended 30 June 2003

OUTPUT CLASS TEN - Vetting and Firearms Licensing

Output Class Description

This output class includes the administrative services provided for the issuing of licences and vetting of applications for passports and licences issued by other agencies. It also involves the issue of licences pursuant to the Arms Act 1983 and Arms Regulations 1992 and provides services relating to the inspection of records and premises of arms' dealers and others.

Outputs purchased within this class

Output 10.1 - Vetting Applications

This output covers the services provided for the vetting of applications for passports and licences issued by other agencies, for example liquor, private investigator, security guard and motor vehicle licensing.

Outcome

Increased public safety

Performance Measures

Output 10.2 - Firearms Licensing

This output covers the services provided for the issuing, enforcement and revocation of licences pursuant to the arms legislation.

Outcome

Safe, lawful use of firearms

Performance Measures

Output Class Statement: Vetting and Firearms Licensing

for the Year Ended 30 June 2003

OUTPUT CLASS ELEVEN - Lost and Found Property

Output Class Description

This output class includes services surrounding the receipt, storage and appropriate disposal of found property and the recording of lost property reports.

Output purchased within this class

Output 11.1 - Lost and Found Property

This output includes services provided in dealing with lost and found property as outlined above.

Outcome

Increased property security

Performance Measures

Output Class Statement: Lost and Found Property

for the Year Ended 30 June 2003

OUTPUT CLASS TWELVE - Road Safety Programme

Output Class Description

This output class covers the delivery of services outlined in the New Zealand Road Safety Programme (NZRSP) directed towards the achievement of road safety outcomes. Road safety programmes are grouped into four broad activity areas. The largest activity covers the delivery of key strategic services such as Highway Patrol, speed and traffic camera operations, restraint device control, drink or drugged driver control operations, commercial vehicle investigation activity and visible road patrol.

Other activity areas cover Court prosecution and infringement management; road safety education activities and community services; and the services associated with traffic management such as peak flow, event traffic control and crash attendance.

Outputs purchased within this class

Output 12.1 - Strategic Traffic Safety

This output covers the detection and deterrence of drinking or drugged driver offending and speeding drivers by way of patrol and the use of traffic cameras. It also includes monitoring and enforcement of legislation covering the wearing of restraints in vehicles, and an enforcement presence that is targeted at identified local road problems. Included also are highway patrols through a dedicated Highway Patrol, targeting alcohol-impaired driving, speed, restraints and accident promoting offences. Other services provided are the monitoring of commercial vehicle traffic, enforcement of legislation covering commercial vehicles and compliance with the Road User Charges Act 1977.

Outcomes

Reduction in road trauma and death

Safer roads due to increased compliance with traffic legislation

Police will contribute to the National Road Safety Strategy 2010 by:

• Providing services aimed at reducing the incidence of speeding drivers on New Zealand roads

• Enforcement and targeted patrol activity aimed at reducing the number of casualties of road crashes

• Targeted operations aimed at reducing the percentage of drivers driving under the influence of alcohol as measured by an annual Land Transport Safety Authority (LTSA) roadside alcohol survey

• Enforcement and targeted patrol activity aimed at reducing the proportion of fatal and injury crashes on state highways where speed or alcohol was a factor

Performance Measures

Output 12.2 Traffic Management Services

This output covers commuter traffic flows and the management of traffic flows at major public and sporting events. It also covers congestion arising from vehicle breakdowns and failures of traffic control devices and the maintenance of traffic movements in situations such as oil spills and other pollution on roads where additional risk to road safety is caused by unanticipated events or incidents. The output also covers attendance at the scenes of crashes, investigation and follow-up enquiries to prosecution stage, including the completion of traffic crash reports.

Outcome

Safe and efficient emergency procedures at crash sites

Reduction in road trauma

Maintenance of safe and efficient traffic flows

Performance Measures

Output 12.3 - Traffic Prosecution Services and the Enforcement of Court Orders

This output deals with the processing and serving of traffic summonses and warrants, management of traffic offence notices and prosecution of offences against the Transport Act 1962 and the Land Transport Act 1998 and traffic regulations. It also includes the execution of arrest warrants, fines warrants and other warrants as required and the service of summonses and other minor offence notices generated under the Transport Act.

Outcome

A reduction in road trauma

Increased personal safety and property security

Performance Measures

Output 12.4 - Community Traffic Safety

This output covers Youth Education Services through formal school visits to educate children on proactive and preventative road safety programmes aimed at keeping children safe, and the provision of training and supervision of school traffic patrols. Included is the development and maintenance of the Police road safety education programme. The output also includes community consultation, community projects and local campaigns to develop joint proactive Police / community solutions to road safety issues.

Outcome

Reduction of road trauma amongst children and young persons

Increased community capability in reducing road trauma

Performance Measures

Output Class Statement: Road Safety Programme

for the Year Ended 30 June 2003

Financial Statements

New Zealand Police Financial Statements

for the Year Ended 30 June 2003

Statement of Accounting Policies

Statutory Authority

These are the financial statements of New Zealand Police (hereafter referred to as Police) prepared pursuant to Sections 2 and 35 of the Public Finance Act 1989.

Measurement System

The financial statements have been prepared on the historic cost basis, modified by the revaluation of certain assets as identified in the specific accounting policies below.

Budget Figures

The budget figures are those presented in the Budget Estimates (Main Estimates) as amended by Supplementary Estimates and any transfer made by Order in Council under Section 5 of the Public Finance Act 1989.

Revenue

Police derives revenue through the provision of outputs to the Crown, and for services to third parties. Such revenue is recognised when earned and is reported in the financial period to which it relates.

Valuation of Current Assets

Cash is defined as including petty cash holdings and bank accounts.

Accounts receivable are stated at net realisable value.

Inventories are valued at the lower of cost (weighted average) and net realisable value.

Property, Plant and Equipment

Valuation

Beca Valuation Ltd revalued land and buildings as at 1 January 2003. Land and buildings are recorded at fair value. Fair value is determined using market-based evidence, unless insufficient market-based evidence exists, in which case they are valued at optimised depreciated replacement cost.

Land and buildings are revalued at least every five years. Additions between revaluations are recorded at cost.

Any revaluation surplus arising on the revaluation of a class of asset is transferred directly to the asset revaluation reserve. A revaluation deficit in excess of the asset revaluation reserve balance for the class of fixed asset is recognised in the Statement of Financial Performance in the period in which it arises.

Capital work in progress is valued at historical cost and on completion will be transferred to the appropriate asset category.

Other property, plant and equipment is initially recorded at cost.

Individual items of equipment costing less than $5,000 are expensed in the year that they are purchased, with the exception of desktop computer equipment. All desktop computer equipment is capitalised.

Provision is made for any permanent impairment in the value of non-current assets.

Artefacts and relics held in the Police museum are recorded at nil value.

Depreciation

Depreciation is charged on a straight-line basis at the following rates:

Depreciation commences in the month of acquisition and is not charged in the month of sale.

Employee Entitlements

Provision is made in respect of Police's liability for annual leave, shift workers' leave, long service leave, retirement leave and time off in lieu. Provisions for annual leave, shift workers' leave and time off in lieu have been measured on nominal values on an actual entitlement basis using current rates of pay.

Provisions for long service leave and retirement leave have been measured on an actuarial basis based on the present value of expected future entitlements.

Sponsorship

Funds provided by third parties for sponsorship of specific projects are held in a sponsorship reserve until expensed, at which point both the expenditure and matching revenue are recognised in the Statement of Financial Performance.

Foreign Currency

Foreign currency transactions are converted to New Zealand dollars using the exchange rate at the date of the transaction. Where a forward exchange contract has been used to establish the price of a transaction, the forward exchange rate specified in that foreign exchange contract is used to convert that transaction to New Zealand dollars. Consequently, no exchange gain or loss resulting from the difference between the forward exchange contract rate and the spot exchange rate on the date of settlement is recognised.

Monetary assets and liabilities held or owing in foreign currency are translated to New Zealand dollars at the closing exchange rate. The resulting unrealised exchange gains or losses are recognised in the Statement of Financial Performance.

Financial Instruments

Police is party to financial instruments as part of its normal operations. Financial instruments used by Police consist of bank accounts, Crown receivables, accounts receivable, accounts payable and foreign currency forward contracts. Police enters into the foreign currency forward contracts to hedge currency transactions. Apart from foreign currency forward contracts, all financial instruments are recognised in the Statement of Financial Position. Revenue and expenses in relation to all financial instruments are recognised in the Statement of Financial Performance.

Cost Allocation

Definition of Terms

• Activity Management System (AMS) is the system used to record time spent on tasks and activities by sworn and non-sworn personnel. There is a pre-defined relationship between each task and activity and specific output classes.

• Direct costs are costs that are causally linked to output classes.

• Indirect costs are all other costs. These include property occupancy, training, support, computer systems, depreciation and capital charge.

Method of Assigning Costs to Output Classes

Costs are allocated to output classes based upon the proportion of total productive hours recorded in AMS against activities that are related to each output class. Productive hours are initially costed at a standard rate. Any variance between the standard rate and the actual cost is allocated amongst output classes based on the proportion of total output costs.

Taxation

Police is exempt from the payment of income tax in terms of the Income Tax Act 1994. Accordingly, no charge for income tax has been provided for.

Goods and Services Tax (GST)

The Statement of Unappropriated Expenditure and the Statement of Appropriations are inclusive of GST. All other statements are GST exclusive. Accounts receivable and accounts payable in the Statement of Financial Position are GST inclusive. The amount of GST owing to or by the Inland Revenue Department at balance date, being the difference between Output GST and Input GST, is included in accounts payable or accounts receivable as appropriate.

Commitments

Future expenses and liabilities to be incurred on contracts that have been entered into at balance date are reported as commitments to the extent that they are equally unperformed obligations.

Operating Leases

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items are classified as operating leases. Operating lease expenses are recognised on a systematic basis over the period of the lease.

Contingent Liabilities

Contingent liabilities are disclosed at the point at which the contingency is evident.

Comparative Information

Certain comparative information has been reclassified where necessary to conform with the presentation in the current year.

Changes in Accounting Policies

There have been no changes in accounting policy. All policies have been applied on a basis consistent with previous periods.

Statement of Appropriations

for the Year Ended 30 June 2003

(Figures are GST inclusive where applicable)

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

Statement of Financial Performance

for the Year Ended 30 June 2003

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

Statement of Movements in Taxpayers' Funds (Equity)

for the Year Ended 30 June 2003