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G8
2017-2018 
STATEMENT  
OF PERFORMANCE 
EXPECTATIONS 
FIRE AND 
EMERGENCY  
NEW ZEALAND
Tauākī o ngā 
taumata mahi hei 
whakatutuki
Ratonga ahi  
me ngā ohotata  
i Aotearoa
under the Official Information Act
Released 

PRESENTED TO THE HOUSE OF REPRESENTATIVES PURSUANT TO SECTION 149 OF THE CROWN ENTITIES ACT 2004.
CONTENTS
Ngā kaupapa
Statement of Responsibility 
0 1  
Introduction
03
Consultation and reporting to the 
Minister of Internal Affairs 
08
Reportable Outputs 
09
Organisational Health and Capability 
1 7
Output class reporting 
2 0
Financial Statements 
2 1
Fire and Emergency New Zealand 
Board of Directors 
37
under the Official Information Act
Released 
ABOUT FIRE AND EMERGENCY NEW ZEALAND
Fire and Emergency New Zealand is a new unified fire organisation that brings together our country’s 
urban and rural fire services for the first time. The formation of Fire and Emergency New Zealand 
represents a once in a generation opportunity to enable New Zealand to have a fit for purpose 21st 
century fire and emergency organisation that is flexible, adaptable and efficient.
www.fireandemergency.nz
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS
01



STATEMENT OF 
RESPONSIBILITY
Tauākī kawenga
The Statement of Performance Expectations sets out Fire and 
Emergency New Zealand’s intended non-financial performance 
and financial forecast for the year 1 July 2017 to 30 June 2018,  
and should be read in conjunction with the Statement of Intent. 

The structure and content of this Statement 
The Board acknowledges responsibility  
of Performance Expectations follows the  
for the preparation of this Statement of 
general requirements set out in the Crown  
Performance Expectations, which reflects the 
Entities Act 2004. 
forecast performance and the financial position 
of Fire and Emergency New Zealand for the 
The Board members and management of Fire 
financial year 1 July 2017 to 30 June 2018.
and Emergency New Zealand are responsible for 
maintaining systems and processes that support 
robust, objective decision-making and compliance 
 Signature
Signature
with rules, and providing reasonable assurance as 
to the integrity and reliability of financial reporting. 
Honorable Paul Swain 
Dr Nicola Crauford 
Chair 
Deputy Chair
The performance to be achieved by Fire and 
Emergency New Zealand for the year 1 July  
2017 to 30 June 2018 specified in this Statement 
of Performance Expectations has been agreed 
with the Minister for Internal Affairs, who is 
responsible for overseeing and managing  
the Crown’s interests in Fire and Emergency  
under the Official Information Act
New Zealand. 
Released 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS 
01


Act
Information 
Official 
the 
under 
Released 
 
02 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS
 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS 
03

INTRODUCTION
Kupu whakataki
This Statement of Performance Expectations should be read in 
Act
conjunction with the Fire and Emergency New Zealand Statement  
of Intent 2017-2021, which provides the strategic direction and 
priorities for the organisation.

WHAT WE DO: FIRE AND 
These include responding to:
EMERGENCY NEW ZEALAND’S 
•  medical emergencies 
OBJECTIVES AND FUNCTIONS
Information 
•  maritime incidents
Our main objectives are to:
•  other rescues
•  reduce unwanted fires
•  weather events and disasters
•  protect and preserve life, prevent or limit  
•  incidents where substances present a risk  
injury, and prevent or limit damage to  
to people, property, or the environment
property, land and the environment.
•  any other situation where we can assist.
Official 
Fire and Emergency New Zealand will seek  
to achieve these objectives through our  
ADDITIONAL PROVISIONS
the 
main and additional functions. 
In addition, the Act provides for local advisory 
committees to provide local input into our national 
The Fire and Emergency New Zealand Act  
planning, ensuring that it is responsive to the risks 
2017 (the Act) sets out the “main functions”  
and needs of communities. 
we must do including: under 
•  fire safety (including guidance on the  
The Act provides an initial transitional levy  
period during which we will be funded from the 
safe use of fire as a land management tool)  
same levy base as under the Fire Service Act 
and firefighting
1975. Following the transitional period there will 
•  responding to hazardous substance incidents 
be a broadened levy base to reflect the range 
•  rescuing trapped people 
of services that we provide. The levy represents 
around 95% of our funding. In addition, there 
•  urban search and rescue.
will be new measures to encourage compliance 
Released 
among levy payers, and to protect the integrity of 
The Act includes “additional functions”  
the levy. We will consult the public on the levy rate 
we may do if we have capability and capacity,  
and our proposed activities at least every three  
and provided this does not affect our ability  
years, making our funding more transparent  
to carry out our main functions. 
and aligned to strategic priorities. 
 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS 
03

The Act also provides for a range of measures for 
In formulating these principles, we must  
Act
our detailed design and operation. This will enable 
take into account: 
us to provide fire and emergency services that are 
•  the importance of evidence-based,  
flexible, up-to-date, effective and efficient, that 
efficient and effective services 
are funded appropriately, and that value the paid 
•  local interests and differences
and volunteer workforce. These measures include:
•  the importance of transparency 
•  a framework for supporting volunteers,  
based on modern volunteer principles
•  the importance of engagement with  
personnel, local advisory committees,  
•  penalties and offences provisions
and relevant organisations.
•  a disputes resolution scheme
Information 
•  a code of practice to ensure the adequacy  
of firefighting water supplies
HOW WE OPERATE
•  updated provisions for evacuation schemes. 
Fire and Emergency New Zealand was established 
in July 2017 following the enactment of the Fire 
As a Crown entity, we must also comply with 
and Emergency New Zealand Act. It combines 
the Crown Entities Act 2004 and all relevant 
urban and rural fire services into a single, unified 
Official 
legislation.
fire services organisation, and expanded functions 
that reflect the wide range of services firefighters 
provide for communities. To a large degree, this 
the 
FIRE AND EMERGENCY NEW 
wider mandate brings into law what has already 
ZEALAND’S APPROACH
been an operational reality.
The Act provides a framework within which to 
deliver our functions. We are required to develop 
operating principles to guide and assist us to:
TRANSITION PERIOD 2017 – 2020
under 
•  carry out our functions effectively  
A realistic three-year integration programme  
and in a coordinated manner
has been designed to ensure that Fire and 
•  work co-operatively and collaboratively  
Emergency New Zealand can respond safely  
with other organisations
and effectively to emergencies from 1 July 2017, 
•  consult effectively with stakeholders.
while delivering the work required to realise the 
benefits of the new organisation and give  
effect to the new legislation. 
Released 
 
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OUTCOMES FRAMEWORK
The Outcomes Framework (shown below) represents a high-level view of our Impacts Framework. 
This framework demonstrates the relationships between the outputs, impacts and outcomes and 
graphically represents the process by which the organisation creates value for New Zealand.
Act
GOVERNMENT 
BETTER PUBLIC SERVICES THAT ALL  
PRIORITY
NEW ZEALANDERS RELY ON
OUTCOMES
Information 
REDUCE LIKELIHOOD  
INCREASE COMMUNITY  
REDUCE CONSEQUENCES  
OF UNWANTED FIRE
RESILIENCE
FROM EMERGENCIES
IMPACTS
Official 
the 
BUILDINGS ARE SAFER
RECOVERY FROM MAJOR  
HARM FROM FIRE IS REDUCED
DISASTER EVENT IS SWIFTER
PUBLIC SAFETY  
MEDICAL TREATMENT  
BEHAVIOUR IS  
COMMUNITIES BETTER  
IS EXPEDITED
ENHANCED
ABLE TO MANAGE MAJOR 
EMERGENCIES
HARM TO ENVIRONMENT  
FROM HAZARDOUS  
SUBSTANCES IS REDUCED
under 
PRODUCTS  
& SERVICES
ADVICE TO INDUSTRY AND  
SPECIALIST DISASTER RECOVERY 
TIMELY AND PROFESSIONAL 
COUNCIL ON BUILDING DESIGN
FOLLOWING MAJOR EMERGENCIES
RESPONSE TO ALL FIRES
Released 
FIRE SAFETY EDUCATION  
NETWORK OF TRAINED  
TIMELY AND PROFESSIONAL 
TO THE PUBLIC
EMERGENCY RESPONDERS  
RESPONSE TO OTHER  
ACROSS NEW ZEALAND
EMERGENCIES
FIRE PERMITTING AND 
ENFORCEMENT
URBAN SEARCH AND RESCUE
ORG HEALTH   
SAFETY, HEALTH AND WELLBEING   •   PEOPLE   •   FINANCE 
& CAPABILITY
ICTS   •   TRAINING   •   BUSINESS EFFECTIVENESS
 
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OUR STRATEGIC PRIORITIES 
FIRE REDUCTION AND PREVENTION
Act
Our Statement of Intent 2017-2021 identifies 
We will build our capability to deliver effective 
five priorities that will be the focus for Fire and 
community risk reduction activities to prevent 
Emergency New Zealand over the next four 
unwanted fires and provide guidance on fire  
years. The first three of the priorities reflect our 
risk reduction and prevention.
commitment to delivering better outcomes for 
New Zealanders through the services we deliver:
STRONGER ENGAGEMENT WITH COMMUNITIES
•  Fire risk reduction and prevention
Engaging and connecting with our communities 
will enable us to identify and provide services that 
•  Stronger engagement with communities
are appropriate to community risks and needs.
•  Coordinated services.
Information 
COORDINATED SERVICES
The final two priorities are focused on creating  
Coordinated services will help ensure improved 
the right environment within Fire and Emergency 
readiness for and response to incidents.  
New Zealand to ensure that we can maximise  
We will build capacity and capability in a range  
the impact we deliver for New Zealanders:
of areas. This will enhance coordination within  
•  Building and shaping Fire and Emergency  
Fire and Emergency New Zealand and with  
Official 
New Zealand
other emergency services.
•  Developing a shared identity.
BUILDING AND SHAPING FIRE  
the 
Our strategic priorities operate within the  
AND EMERGENCY NEW ZEALAND
context of the Outcomes Framework and seek  
We will be a fit for purpose, 21st century fire  
to lift our performance by improving the quantity 
and emergency service that is well led, has  
and quality of our products and services, and 
a valued and supported workforce and enjoys  
enhancing our impact. This is illustrated by the 
the confidence and trust of communities and 
under 
strategy map on the following page.
other stakeholders.
The nature of the activities we will undertake  
DEVELOPING A SHARED IDENTITY
in support of each strategic priority and the 
Merging 40 organisations, each with their  
benefits we expect to realise from each  
own history and culture, requires us to connect 
priority are:
our people under a unifying identity which 
recognises what we all have in common  
and values what is different. 
Released 
 
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STRATEGY MAP
OUTCOMES
Act
REDUCE LIKELIHOOD  
INCREASE COMMUNITY  
REDUCE CONSEQUENCES 
ORGANISATIONAL HEALTH  
OF UNWANTED FIRE
RESILIENCE
FROM EMERGENCIES
AND CAPABILITY
IMPACTS
Information 
BUILDINGS ARE  
RECOVERY FROM  
HARM FROM FIRE IS REDUCED
SAFER
MAJOR DISASTER EVENT  
MEDICAL TREATMENT  
PUBLIC SAFETY  
IS SWIFTER
IS EXPEDITED
BEHAVIOUR IS  
COMMUNITIES  
HARM TO ENVIRONMENT  
ENHANCED
BETTER ABLE TO MANAGE  
FROM HAZARDOUS  
MAJOR EMERGENCIES
SUBSTANCES IS REDUCED
STRATEGIC  
Official 
IMPACTS
the 
GREATER  
SERVICES BETTER 
IMPROVED  
EFFECTIVE LEADERSHIP  
EMPHASIS ON AND  
TAILORED TO 
READINESS FOR AND 
AND GOVERNANCE
EFFECTIVENESS OF FIRE 
COMMUNITY NEEDS  
QUALITY OF RESPONSE 
ENHANCED EFFECTIVENESS  
RISK REDUCTION
AND RISKS
TO INCIDENTS
AND EFFICIENCY
under 
GREATER SENSE OF  
ENGAGEMENT AND BELONGING
STRATEGIC 
PRIORITIES
Released 
FIRE REDUCTION  
STRONGER ENGAGEMENT 
COORDINATED  
BUILDING AND  
AND PREVENTION
WITH COMMUNITIES
SERVICES
SHAPING FIRE AND EMERGENCY 
NEW ZEALAND
DEVELOPING A  
SHARED IDENTITY
We will monitor progress toward our outcomes using the specific measures and targets set out in this 
Statement. Both the Outcomes Framework and the strategic priorities will provide the basis for key 
performance indicators and individual performance measures for all our people.
 
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CONSULTATION AND  
REPORTING TO THE MINISTER 
OF INTERNAL AFFAIRS
Te Kōrerotahi me te 
whakaputanga ā-pūrongo  
ki te Minita
Act
CONSULTATION WITH THE MINISTER
The Board is committed to a “no surprises policy” for new initiatives, operational events and overall 
policies. The Board will provide its responsible Minister with accurate, relevant, complete and timely 
Information 
information to ensure the Minister’s decisions and responsibilities with respect to Fire and Emergency 
New Zealand can be carried out on a fully informed basis. 
REPORTING TO THE MINISTER
The Board will provide quarterly progress reports to the Minister against its key priorities and initiatives, 
Official 
the service, and financial performance expectations set out in this Statement and other information as 
required. The quarterly reports will be provided within the following timeframes:
the 
QUARTER
TIMEFRAME – NO LATER THAN
1 July 2017 to 30 September 2017
3 November 2017
1 October 2017 to 31 December 2017
2 March 2018
under 
1 January 2018 to 31 March 2018
4 May 2018
1 April 2018 to 30 June 2018
3 August 2018
Released 
 
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REPORTABLE OUTPUTS
Ngā whakaputanga 
ā-pūrongo
FIRE AND EMERGENCY  
Subject to an annual application, additional funding  Act
NEW ZEALAND TRANSITION 
has been made available through a capital injection 
to support Fire and Emergency New Zealand to 
WHAT IS IT INTENDED TO ACHIEVE?
deliver a three year programme of integration.
A successful transition into Fire and Emergency 
New Zealand of functions previously undertaken by 
Measures that are highlighted in orange 
40 separate organisations. Above all, successful 
throughout this Statement of Performance 
transition requires that emergency services 
Expectations have been specifically identified as 
continue to be provided on Day One of the new 
Transition based and will be used to report against 
organisation and beyond without interruption. 
progress of the integration. 
Information 
REDUCED LIKELIHOOD OF UNWANTED FIRES
WHAT IS IT INTENDED TO ACHIEVE?
Preventing unwanted fires from occurring, and authorised and managed fires from getting out of 
control, through leading an enhanced programme of research, education, community engagement, 
compliance and advice.
Official 
ACTIVITIES UNDER THIS OUTPUT 
the 
ADVICE TO INDUSTRY AND COUNCILS ON BUILDING DESIGN
Core services
ACTIVITY
MEASURE OF SUCCESS
Undertake fire engineering assessments  
1.1.1
All assessments are processed within  
under 
during the design phase of new buildings.
10 working days.
Administer the fire safety and evacuation of 
1.1.2
All applications for evacuation schemes 
buildings regulation, ensuring schemes provide  
are processed within 20 working days.
for the safe evacuation of people during a  
fire emergency.
Action to support our strategic priorities
Released 
ACTIVITY
MEASURE OF SUCCESS
Develop a risk score tool that measures the  
1.2.1
Risk score tool designed by  
impact of Fire and Emergency New Zealand’s  
31 March 2018.
advice on building design, in relation to the  
overall safety level of the building. 
 
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FIRE SAFETY EDUCATION TO THE PUBLIC
Act
Core services
ACTIVITY
MEASURE OF SUCCESS
Deliver a suite of targeted fire education 
2.1.1 
90% of people surveyed are aware that 
programmes that resonate with audiences  
a house fire can become fatal within five 
and promote fire reduction and prevention. 
minutes.
Deliver Fire Awareness Intervention Programme 
2.1.2  FAIP is offered in 95% of incidents involving 
(FAIP) – an education programme that is delivered 
5-17 year olds when they are able to be 
Information 
by trained firefighters to address unhealthy fire-
identified. 
lighting behaviour by children and young people 
2.1.3  Recidivism rate among FAIP recipients is 
(5–17 year olds).
below 10%.
Undertake fire education nationwide through 
2.1.4  FireWise programme is offered to 100%  
schools to ensure that acting fire wise is  
of schools with year 1 and 2 students over 
imparted early with our young people.
a two-year period.
Official 
2.1.5  60% of schools with year 1 and 2 students 
undertake the FireWise programme over 
a two-year period.
the 
Develop a research strategy aligned to the 
2.1.6  Research strategy developed and in place 
organisation’s priorities, and fund and facilitate a 
by 30 June 2018.
research programme, which leads to improvement 
2.1.7  80% of research funding is allocated 
in understanding and activities relating to fire  
to projects aligned to organisational 
under 
and emergency prevention and response.
priorities.
Released 
 
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Action to support our strategic priorities
Act
ACTIVITY
MEASURE OF SUCCESS
Review and fully integrate a fire safety  
2.2.1  Integrated fire safety strategy is in place 
strategy, including programmes tailored for  
by 30 June 2018.
New Zealand’s diverse communities, and an 
2.2.2  Process for reviewing future fire safety 
enhanced fire safety promotion programme. 
promotion programme is in place  
by 30 June 2018.
Engage with stakeholders and communities, 
2.2.3  Local planning process designed  
including those disproportionately impacted by  
by 30 June 2018.
Information 
fire, on the local fire planning process to achieve  
a holistic approach to local risk management.
Develop effective guidance on the safe use  
2.2.4  Guidance on safe fire use is in place  
of fire as a land management tool. 
by 31 December 2017.
2.2.5  By 30 June 2018, 80% of surveyed 
Official 
stakeholders agree that guidance is fit  
for purpose.
the 
FIRE ADVICE, PERMITTING AND ENFORCEMENT
Core services
ACTIVITY
MEASURE OF SUCCESS
Act as an advocate and subject matter  
3.1.1 
Provide at least three case studies by  
under 
expert organisation on relevant aspects  
30 June 2018 where Fire and Emergency 
of the government policy and legislative  
New Zealand has provided advice and 
change programme. 
information on relevant aspects of the 
government policy and legislative  
change programme.
Action to support our strategic priorities
Released 
ACTIVITY
MEASURE OF SUCCESS
Develop a compliance and enforcement strategy.
3.2.1  Compliance and enforcement strategy  
in place by 30 June 2018.
Embed a national online fire permitting system  
3.2.2  Fire permitting system implemented  
which is easy to use and effective for ourselves  
by 30 June 2018.
and our communities.
 
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REDUCED CONSEQUENCES FROM EMERGENCIES
Act
WHAT IS IT INTENDED TO ACHIEVE?
Being a trusted responder to incidents by leading or supporting others to minimise the impact  
on people, property and the environment. Ensuring that risks to people are managed through  
clear accountability, capability development and appropriate resourcing. 
ACTIVITIES UNDER THIS OUTPUT
TIMELY AND PROFESSIONAL RESPONSE TO FIRES

Information 
Core services
ACTIVITY
MEASURE OF SUCCESS
Responding to fires
4.1.1 
Career crews respond to 85%1 of structure 
fires (excluding Private Fire Alarm (PFA) 
false alarms) within eight minutes.
Official 
4.1.2  Urban volunteer crews respond to 85% 
of structure fires (excluding PFA false 
alarms) within 11 minutes.
the  4.1.3  Record the number of fires responded  
to by rural fire forces.2
Action to support our strategic priorities
under 
ACTIVITY
MEASURE OF SUCCESS
Identify gaps in operational equipment, technology 
4.2.1  Gap analysis and investment plan 
and training and begin making targeted 
complete for fleet, property, equipment 
investment to address these.
and training requirements by 30 June 
2018.
   
Released 
 
 
1  The percentage targets for Fire and Emergency New Zealand are lower than previous similar targets for the New Zealand 
Fire Service. These targets did not provide a useful indicator of organisational performance and in most cases were not 
achieved. The current measures are based on actual performance and are a more reliable indicator of what response 
times can be expected, based on the resourcing and footprint of Fire and Emergency New Zealand. New measures  
will be developed in 2017/18. 
2  New measures for response by rural fire forces will be developed during 2017/18, as integrated rural data becomes available.
 
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TIMELY AND PROFESSIONAL RESPONSE TO OTHER EMERGENCIES
Act
Core services
ACTIVITY
MEASURE OF SUCCESS
Motor vehicle crashes
5.1.1 
Crews from specialist resource locations 
respond to 90% of motor vehicle crashes 
within 30 minutes.
5.1.2  Record the number of motor vehicle 
crashes responded to by rural fire fighters.
Information 
Medical emergencies
5.2.1  Career crews respond to 85% of medical 
emergencies within eight minutes.
5.2.2  Urban volunteer crews respond to 85% of  
medical emergencies within 11 minutes.
5.2.3  Record the number of medical emergencies 
responded to by rural fire forces.
Official 
Hazardous substances incidents
5.3.1  Crews from specialist resource locations 
respond to 85% of hazardous substances 
the  incidents within 60 minutes.
Action to support our strategic priorities
ACTIVITY
MEASURE OF SUCCESS
under 
Establish a high level of engagement with 
5.4.1  Achieve an annual external stakeholder 
emergency sector partners and other relevant 
engagement survey score of 7.8/10  
agencies which achieves greater coordination  
or better.
within the sector.
Released 
 
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INCREASED COMMUNITY RESILIENCE
Act
WHAT IS IT INTENDED TO ACHIEVE?
Maintaining a strong local presence and improved services, supported by a national organisation that  
is responsive to risks and needs. This will help ensure that communities have the capability to prevent 
and respond to emergencies.
ACTIVITIES UNDER THIS OUTPUT 
SPECIALIST DISASTER RECOVERY FOLLOWING MAJOR EMERGENCIES

Information 
Core services
ACTIVITY
MEASURE OF SUCCESS
Provide a skilled and specialist response to  
6.1.1 
Establish a baseline of the number of 
severe weather-related events, natural hazard  
personnel trained to CAT1R3 in urban 
events and disasters.
search and rescue (USAR).
Official 
6.1.2  Report following annual exercise shows  
USAR operating at full effectiveness.
the 
AN ENGAGED AND EQUIPPED NETWORK OF COMMUNITIES ACROSS NEW ZEALAND
Core services
ACTIVITY
MEASURE OF SUCCESS
Provide essential emergency response  
7.1.1 
90% of the New Zealand population  
under 
capabilities to all New Zealand communities.
is within nine minutes drive-time  
from a station.
 
 
 
 
 
Released 
  
 
 
 
 
 
3  CAT1R is a general qualification issued to Fire and Emergency New Zealand personnel that meet the requirements for  
a core level of awareness and response capability in urban search and rescue.
 
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Action to support our strategic priorities
Act
ACTIVITY
MEASURE OF SUCCESS
Publish a statement about how we will support 
7.2.1  Statement published by 30 June 2018.
the Crown in its Treaty of Waitangi relationships, 
to help support and improve our engagement with 
and relevant outcomes for Māori.
Design a structure and approach for local advisory 
7.3.1  At least one trial LAC is operating  
committees (LAC) so they are able to engage 
by 31 March 2018. 
on behalf of their communities and effectively 
7.3.2  Recommendations stemming from trial LAC 
Information 
identify risks and needs. Establish at least one 
have been developed by 30 June 2018.
trial local advisory committee, based on pilots.
7.3.3  By 31 May 2018, 80% of surveyed 
stakeholders involved in the trial LAC 
process indicate it was well run and that 
their views were heard.
Official 
Undertake public consultation to determine local 
7.4.1  Public consultation is completed  
advisory committee boundaries.
by 30 June 2018.
the 
 
under 
Released 
 
14 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS
 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS 
15


Act
Information 
Official 
the 
under 
Released 
 
16 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS
 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS 
17

ORGANISATIONAL 
HEALTH AND CAPABILITY
Te kaha me te hauora 
whakahaere
WHAT IS IT INTENDED TO ACHIEVE?
Act
The focus for Fire and Emergency New Zealand as it establishes itself as a new organisation is to ensure that 
the systems, processes and culture support our personnel to do their best for New Zealanders every day. 
There are a significant number of processes and systems that need to be transitioned and integrated 
into Fire and Emergency New Zealand and this will be a key focus in 2017/18 to ensure we can continue 
to deliver our services well.
To deliver on its objectives and the intentions of the reform, Fire and Emergency New Zealand will foster 
an inclusive, team-based, safety conscious culture with a workforce that reflects the diversity of the 
Information 
communities in which it serves.
ACTION TO SUPPORT OUR STRATEGIC PRIORITIES 
ACTIVITY
Official 
Design an operating model that:
8.1.1 
Draft operating model completed  
•  Establishes our operating principles
by 30 June 2018.
•  Sets out how the new organisation will work
the 
•  Describes a flexible operational function with  
a strategic and well-run corporate function
•  Identifies the skills and knowledge our people  
need for Fire and Emergency New Zealand to 
achieve its mission under 
•  Includes a performance measurement, monitoring 
and reporting framework that supports greater 
transparency and improved decision-making.
•  Describes tools for the organisation to ensure  
that our people are well engaged in decision 
making for the business.
Released 
 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS 
17

Act
ACTIVITY
Undertake an engagement survey to provide  
8.1.2  Engagement survey run and baseline 
a baseline measurement
target established by 30 June 2018.
Undertake consultation with the public and key 
8.1.3  Public consultation on levy rates 
stakeholders to provide analysis to the Department of 
completed by 31 March 2018.
Internal Affairs to support recommendations to cabinet 
on the next levy rates.
Develop our volunteer strategy and commence 
8.1.4  Volunteer strategy developed by  
Information 
implementation of the associated prioritised 
31 March 2018.
work programmes based on contemporary 
8.1.5  Published year one volunteer initiatives 
volunteer principles.
are delivered by 30 June 2018.
Administer an interim issues process for 
8.1.6  Conduct a preliminary review of the interim 
volunteers and capture the learnings to inform 
process by 31 December 2017. Findings of 
Official 
the future statutory disputes resolution scheme.
preliminary review to feed into future-state 
disputes resolution model.
Develop health standards and associated support 
8.1.7  Health standards and associated support 
the 
processes to support the safety, health and 
processes developed by 30 June 2018.
wellbeing of our people.
Develop a recognition strategy for volunteer 
8.1.8  Priority components of the recognition 
personnel, including a uniform approach to 
strategy identified and implementation 
under 
volunteer reimbursements and payments. 
commenced by 30 June 2018.
Released 
 
18 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS
 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS 
19

Act
ACTIVITY
Engage with our people to develop the vision and 
8.1.9  Engagement process completed  
values that will underpin Fire and Emergency 
by 30 June 2018.
New Zealand and shape our identity.
Design and implement methodologies to identify 
8.1.10  Complete pilots of the Strategic Leader 
and develop current and future leaders of Fire 
and Senior Leader programmes by 30 
and Emergency New Zealand.
March 2018.
Develop a strategy for an inclusive culture that 
8.1.11  Inclusive culture strategy is in place by 31 
Information 
promotes a supportive environment and fosters 
March 2018. All levels of the organisation 
diversity within our workforce. 
have been consulted on its development.
Develop a comprehensive brand strategy to fully 
8.1.12  Brand strategy developed by  
implement all elements of our identity. 
30 December 2017.
Official 
Reduce the number of staff workplace injuries  
8.1.13  Number of staff workplace injuries 
requiring more than seven days off work.
requiring more than seven days off work, 
less than 134.4
the 
4  Figure based on a four-year average for New Zealand Fire Service. The measure will be refined as rural employees’ health 
and safety information is migrated to Fire and Emergency New Zealand, and information becomes available on injury rates 
across the whole organisation.
under 
Released 
 
18 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS
 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS 
19

OUTPUT CLASS 
REPORTING
Act
FORECAST
FORECAST
FORECAST 
NET
 LEVY
OTHER
TOTAL 
 SURPLUS/
$000 GST excl
 RECEIPTS
 REVENUE EXPENDITURE
 (DEFICIT)
1.0 Reduced likelihood of unwanted fires
77,749
2,878
69,242
11,385
1.1 Advice to industry and councils on building 
1,955
500
1,601
854
design
1.2 Fire safety education to the public
32,266
1,036
30,147
3,155
1.3 Fire advice, permitting and enforcement
43,528
1,343
37,494
7,377
Information 
2.0 Reduced consequences from emergencies
417,654
13,118
381,890
48,882
2.1 Timely and professional response to all fires
317,078
8,932
260,036
65,974
2.2 Timely and professional response  
100,576
4,186
121,854
(17,092)5 
to other emergencies
3.0 Increased community resilience
22,713
764
19,320
4,157
Official 
3.1 Specialist disaster recovery following  
22,713
764
19,320
4,157
major emergencies
the 
3.2 An engaged and equipped network of 
communities across New Zealand6
4.0 Integration activities supported  
 – 
 – 
28,293 
(28,293)
by payable capital injection
under 
518,116
16,760
498,745
36,131
Released 
5    This amount signifies an under recovery on motor vehicles.
6  This output does not have any direct cost associated to it as it encapsulates all the costs  
of FIre and Emergency New Zealand which are included in the other outputs.
 
20 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS
 
FIRE AND EMERGENCY NEW ZEALAND   STATEMENT OF PERFORMANCE 2017 – 2021 
21


FINANCIAL 
STATEMENTS 
Ngā tauākī pūtea
FOR THE YEAR ENDED  
30 JUNE 2018 
Act
Information 
Official 
the 
CONTENTS
under 
Ngā kaupapa
Introduction 22
Statement of Comprehensive  
Revenue and Expenditure 
24
Released 
Statement of Changes in Equity 
25
Statement of Financial Position 
26
Statement of Cash Flows 
27
Notes to the Financial Statements 
28
Statement of Accounting Policies 
30
 
20 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS
 
FIRE AND EMERGENCY NEW ZEALAND   STATEMENT OF PERFORMANCE 2017 – 2021 
21



INTRODUCTION
To ensure Fire and Emergency New Zealand are ready to respond to 
Act
incidents and deliver effective services, we incur a high proportion of 
fixed costs in personnel, property and equipment. Contrasted against 
this largely steady expenditure, our funding model means that income 
is not evenly spread across the year.

Taken together, the steady expenditure and 
To provide confidence that our expenditure is 
variable income mean that careful cash-flow 
appropriate and being carefully managed, levy 
management is a high priority. Cash, investments 
setting will be subject to public consultation 
Information 
and other banking and financing facilities are 
at least every three years. Feedback received 
used to cover fluctuations in the difference 
during the public consultation process will be 
between income and expenditure. Additional new 
taken into account when completing the analysis 
borrowing options continue to be explored to 
that underpins proposals to Cabinet on the 
manage in this environment.
levy rates. Beyond the levy rates themselves, 
our levy income is affected by a number of 
Official 
The difference between the cash basis required 
factors including the growth in residential and 
to manage our finances on a day-to-day basis 
commercial construction, changes in motor 
and the accrual accounting required under the 
vehicle numbers, the types of insurance policies 
formal standards for financial statements can 
organisations enter into, and levy exemptions. 
the 
lead to what appears to be significant budget 
In this context, as we transition to the new 
surpluses. The variation between accrual and 
funding base, there are additional complexities 
cash accounting are detailed further in the 
in forecasting income. To mitigate this, we are 
financial notes on page 28.
developing a more detailed estimation model 
in consultation with the insurance industry, and 
under 
Our services are funded primarily through a 
continue to carefully analyse actual data as it 
levy on property and motor vehicle insurance, 
becomes available. 
supplemented by a government contribution for 
public good7 and direct charging for a small set of 
services. To better reflect the scope of activities 
we undertake, the Government has decided to 
broaden the base of the levy from insurance for 
fire. From 1 January 2019, the levy will apply to all 
insurance for material damage (damage through 
Released 
fire, flood, burglary, earthquake or similar events) 
and third-party motor vehicle insurance. 
7  That is, for costs associated with medical emergencies, services to the public and police, rescue and other emergencies, 
domestic and commercial water services, and wider emergency management.
 
22 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS





While we continue to provide core services, over 
Budget forecasts are based on what is currently  Act
the next four years we are working to build a 
known about levy income, operating costs and 
fit-for-purpose fire and emergency organisation 
the investment we require in our initial period 
that is flexible, adaptable and efficient. The 
of operation. While we have a high degree of 
Government has recognised that this is not a 
confidence for the 2017/18 budget, there is some 
simple or quick task. To fully achieve the intent of 
uncertainty in the forecasts for 2018/19 and 
the reforms and deliver the outcomes desired will 
2019/20. There is therefore likely to be some 
take time and a number of years to implement. 
variation in subsequent years’ Statements of 
Government approved specific funding to June 
Performance Expectations as we refine our 
2021 for this purpose with a repayable transition 
priorities, better understand the investments 
capital injection of up to $111.94 million over 
required to update our assets and create a new 
Information 
four years. Annual repayments of this transition 
operating model, and address the implications  
funding will also need to be factored in to our 
of the new levy base and the resulting decisions 
cash-flow management.
on the levy rate.
Official 
the 
under 
Released 
 
22 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS
 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS 
23

STATEMENT OF 
COMPREHENSIVE 
REVENUE AND 
EXPENDITURE
For the years ending 30 June
Act
BUDGET
FORECAST
FORECAST
2017/18
2018/19
2019/20
$000
$000
$000
Revenue
Levy
518,116
498,729
503,895
Interest revenue
925
446
202
Other revenue
15,835
15,685
15,635
Total revenue
534,876
514,860
519,732
Expenditure
Information 
Employee and volunteer benefits expenditure
322,891
322,128
328,770
Depreciation
41,377
48,084
56,183
Amortisation
3,337
3,652
4,320
Finance costs
689
955
843
Other expenditure
120,626
114,438
118,403
Official 
Campaign fires 
9,825
9,825
9,825
Total expenditure
498,745
499,082
518,344
the 
Net surplus attributable to Fire and Emergency New Zealand
36,131
15,778
1,388
Other comprehensive income
Gains on revaluation of land and buildings net of impairment losses
14,784
15,227
15,684
Total comprehensive income attributable to the owners  
50,915
31,005
17,072
under 
of Fire and Emergency New Zealand
* Other expenditure
Fleet
18,400
18,991
19,564
Communications and computer
25,836
25,541
25,541
Occupancy 
20,810
21,066
20,911
Operational clothing, equipment and consumables
18,373
15,749
18,277
Released 
Travel
12,810
11,092
12,845
Promotional Activities
6,746
6,676
6,676
Other
17,651 8
15,323
14,589
Total other expenditure
120,626
114,438
118,403
8  In 17/18, this is made up of professional fees $7.1m, grants and donations $3.9m, insurance $2.3m, office equipment and 
consumable $1.7m, R&D $1.1m, and other operating costs $1.5m.
 
24 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS
 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS 
25

STATEMENT OF 
CHANGES IN EQUITY
For the years ending 30 June
Act
BUDGET
FORECAST
FORECAST
2017/18
2018/19
2019/20
$000
$000
$000
Equity at beginning of year
Accumulated funds
567,496
604,257
620,035
Capital Injection
25,951
55,356
71,468
Revaluation reserves
153,573
168,357
183,584
Rural Fire Fighting Fund
630
0
0
Total equity at beginning of year
747,650
827,970
875,087
Information 
Changes in equity during year
Transfers from statement of comprehensive income
Accumulated funds
36,761
15,778
1,388
Revaluation reserves
14,784
15,227
15,684
Official 
Rural Fire Fighting Fund9 
-630
0
0
Total comprehensive income
50,915
31,005
17,072
the 
Capital Injection
29,405 10
16,112
5,680
Total changes in equity during year
80,320
47,117
22,752
Equity at end of year
Accumulated funds
604,257
620,035
621,423
under 
Capital Injection
55,356
71,468
77,148
Revaluation reserves
168,357
183,584
199,268
Total equity at end of year
827,970
875,087
897,839
 
Released 
9  The Rural Fire Fighting Fund ceased to exist on 30 June 2017. Following a final reconciliation at the start of 2017/18, any 
unspent portion funded by Vote Conservation will be returned to the Department of Conservation (or an invoice submitted if 
the portion is in deficit). Any remaining balance will be transferred to Fire and Emergency New Zealand’s accumulated funds.
10  Net income from the capital injection equals the amount drawn down minus repayment.
 
24 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS
 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS 
25

STATEMENT OF 
FINANCIAL POSITION
As at 30 June
Act
BUDGET
FORECAST
FORECAST
2017/18
2018/19
2019/20
$000
$000
$000
Assets
Current assets
Cash and cash equivalents
44,237
7,964
9,824
Trade and other receivables
114,192
143,658
143,050
Prepayments
1,258
1,258
1,258
Total current assets
159,687
152,880
154,132
Information 
Non-current assets
Property, plant and equipment
770,069
815,328
842,625
Intangible assets
15,130
17,003
18,014
Total non-current assets
785,199
832,331
860,639
Total assets
944,886
985,211
1,014,771
Official 
Liabilities
Current liabilities
the 
Trade and other payables
27,164
20,342
23,885
Employee and volunteer benefits
32,786
34,462
39,461
Borrowings
1,738
1,826
1,945
Provisions
1,852
1,852
1,852
Total current liabilities
63,540
58,482
67,143
under 
Non-current liabilities
Employee and volunteer benefits
39,764
39,764
39,764
Borrowings
11,014
9,280
7,427
Provisions
2,598
2,598
2,598
Total non-current liabilities
53,376
51,642
49,789
Total liabilities
116,916
110,124
116,932
Released 
Net assets
827,970
875,087
897,839
Equity
Accumulated funds
604,257
620,035
621,423
Capital Injection
55,356
71,468
77,148
Revaluation reserves
168,357
183,584
199,268
Total equity
827,970
875,087
897,839
 
 
26 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS
 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS 
27

STATEMENT 
OF CASH FLOWS
For the years ending 30 June 
 
 
Act
BUDGET
FORECAST
FORECAST
2017/18
2018/19
2019/20
$000
$000
$000
Cash flows from operating activities
Receipts from levy
485,500
459,263
499,503
Receipts from other revenue
15,835
15,685
15,635
Interest received
925
446
202
Net GST received/(paid)
2,966
(227)
153
Payments to employees and volunteers
(320,097)
(320,452)
(323,770)
Information 
Payments to suppliers for goods and services
(122,350)
(120,955)
(119,936)
Net cash flows from operating activities
62,779
33,760
71,787
Cash flows from investing activities
Proceeds from sale of property, plant and equipment
1,355
6,300
525
Purchase of intangible assets
(2,698)
(5,664)
(5,470)
Official 
Purchase of property, plant and equipment
(78,455)
(84,276)
(68,182)
Net cash flows from investing activities
(79,798)
(83,640)
(73,127)
the 
Cash flows from financing activities
Payment of finance leases
(1,322)
(1,646)
(1,734)
Net cash flows from capital injection11 
29,405
16,112
5,680
Sale and leaseback of assets
6,000
0
0
under 
Interest paid
(592)
(859)
(746)
Net cash flows from financing activities
33,491
13,607
3,200
Net increase/(decrease) in cash and cash equivalents
16,472
(36,273)
1,860
Cash and cash equivalents at beginning of year
27,765
44,237
7,964
Cash and cash equivalents at end of year
44,237
7,964
9,824
Released 
11  Net cash flows from capital injection are the amounts drawn down minus the annual repayments.
 
26 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS
 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS 
27

NOTES TO THE  
FINANCIAL STATEMENTS
These notes set out the business assumptions that underpin the 2017/18 budget, and the 2018/19 and 
2019/20 forecasts. They are set in the context described on page 22 of this Statement. 
1. PERSONNEL
Act
2017/18
2018/19
2019/20
Number of new recruits
96
96
96
Number of regions – urban
5
To be determined 
Number of regions – rural
5
through the development 
Number of areas – urban
24
of the target operating 
model
Number of districts – rural
18
Information 
2.  2017/18 BUDGET
2.1  The levy rates are 10.6c per $100 insured (insured amounts are capped at $100,000 for residential 
buildings and $20,000 for contents) and a flat rate of $8.45 per motor vehicle (less than 3.5 tonne) 
from 1 July 2017, for a period of 18 months. This results in an accounting surplus of $36 million which 
arises primarily from the accounting treatment of levy. The rate of levy is set on a cash basis, which  
(in 2017/18) is $33 million lower than the accrual receipts due to the three-month lag between levy 
Official 
being earned and received.
2.2  From 1 January 2019 levy is payable on insurance contracts three months after they are entered  
into, whereas previously (for the New Zealand Fire Service Commission) it was payable two months 
the 
after contracts were signed. This change results in one month of levy payments not being received  
in 2018/19. The organisation’s cash balance must therefore be maintained at a level that ensures  
there is sufficient to cover expenditure throughout the year. This is the main reason for the drop  
in the forecast end-of-year cash balance in 2018/19 to $7.964 million.
2.3  Included in the 2017/18 total expenditure (in the statement of comprehensive revenue and  
under 
expenditure) is $27.0 million of operating expenditure associated with Integration that is forecast  
to be covered by the capital injection funding. There is also $11.4 million of forecast capital  
expenditure associated with Integration. 
2.4  The Rural Fire Fighting Fund ceased to exist on 30 June 2017. Following a final reconciliation at the 
start of 2017/18, any unspent portion funded by Vote Conservation will be returned to the Department 
of Conservation (or an invoice submitted if the portion is in deficit). Any remaining balance will be 
transferred to Fire and Emergency New Zealand’s accumulated funds. 
2.5  $8.8 million has been budgeted in 2017/18 to begin an investment programme to replace and upgrade 
Released 
rural assets. The transfer of rural assets from Territorial Local Authorities will be through negotiation, 
and could incur some costs for which no provision has been made. The condition of the assets being 
transferred is currently unclear, and in some cases may require immediate replacement. This results  
in some uncertainties to the budget provision that will need to be managed. 
 
28 
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FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS 
29

3. LEVY 
Act
It is assumed that from 2019 the levy will be set on the new base of material damage insurance 
contracts. There is limited data to use in modelling income assumptions on the new base, and the 
regulations on exemptions and capping for certain levy payers were still to be determined at the time 
this Statement of Performance Expectations was published. Together, these factors create a degree 
of uncertainty to estimating projected levy revenue for 2018/19 and 2019/20. There may therefore be 
significant variations in the forecast levy in future Statements of Performance Expectations.
4. CASHFLOW
Information 
The end-of-year cash balances do not reflect fluctuations in income throughout the year that are driven 
by the timing when insurance contracts are entered into, and therefore when the resulting levy is due. 
The lowest point for cash holdings typically occurs in May each year, and is generally around $20 to  
$25 million lower than the end-of-year balance. Therefore cash cannot be steadily expended to the 
forecast end-of-year balance amount. Cash, investments and other banking and financing facilities 
will be utilised to cover monthly fluctuations in income and expenditure, and additional new borrowing 
Official 
options continue to be explored to manage in this environment. 
the 
under 
Released 
 
28 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS
 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS 
29

STATEMENT OF 
ACCOUNTING POLICIES
REPORTING ENTITY 
Act
The Board of Fire and Emergency New Zealand (the Board) is a body constituted under the Fire  
and Emergency New Zealand Act 2017 (the Act). Fire and Emergency New Zealand (the organisation)  
is a Crown entity as defined by the Crown Entities Act 2004. Under the Act, the organisation is the same 
body as the New Zealand Fire Service Commission. The primary objective of the organisation is reducing 
the incidence of unwanted fire and the associated risk to life and property, and through its main and 
additional functions to protect and preserve life, prevent or limit injury, and to prevent or limit damage  
to property land and the environment. The organisation’s functions are for community benefit, rather 
than to make a financial return. The organisation has designated itself as a public benefit entity  
(PBE) for financial reporting purposes. 
Information 
These prospective financial statements for the organisation are for the years ended 30 June 2018,  
2019 and 2020.
BASIS OF PREPARATION 
Official 
STATEMENT OF COMPLIANCE 
These prospective financial statements have been prepared in accordance with the requirements  
the 
of the Crown Entities Act 2004, which includes the requirement to comply with New Zealand  
generally accepted accounting practice (NZ GAAP). 
The financial statements comply with Tier 1 PBE IPSAS, and other applicable Financial Reporting 
Standards, as appropriate for public benefit entities. This includes New Zealand Reporting  
Standard No.42: Prospective Financial Statements (FRS-42).
under 
MEASUREMENT BASE 
These prospective financial statements have been prepared on a historical cost basis modified  
by the revaluation of the following: 
•  Financial assets and liabilities at fair value 
•  Derivative financial instruments at fair value 
•  Certain classes of property at methods appropriate to the class of asset. 
Released 
FUNCTIONAL AND PRESENTATION CURRENCY 
These prospective financial statements are presented in New Zealand dollars which is the organisation’s 
functional currency and rounded to the nearest thousand dollar ($000) unless otherwise stated.
 
30 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS
 
FIRE AND EMERGENCY NEW ZEALAND   2017-2018 STATEMENT OF PERFORMANCE EXPECTATIONS 
31

CRITICAL ACCOUNTING ASSUMPTIONS
Act
In preparing these prospective financial statements, the organisation has made estimates and 
assumptions concerning the future. These estimates and assumptions may differ from the subsequent 
actual results, and variations may be material. Estimates and assumptions are continually evaluated  
and are based on historical experience and other factors, including expectations of future events  
that are believed reasonable under the circumstances.
SIGNIFICANT ACCOUNTING POLICIES
The following accounting policies, which significantly affect the measurement of financial performance 
Information 
and financial position, have been consistently applied.
REVENUE 
Revenue is measured at fair value and is recognised when earned and reported in the financial  
period to which it relates to.
Official 
INTEREST 
Interest income is recognised using the effective interest rate method.
the 
FOREIGN CURRENCY TRANSACTIONS 
Foreign currency transactions are translated into New Zealand dollars using the exchange rates 
prevailing at the date of the transaction.
OPERATING LEASES  under 
Leases that do not transfer substantially all the risks and rewards incidental to ownership of an asset  
to the organisation are classified as operating leases. 
Lease payments under an operating lease are recognised as an expense on a straight-line basis over  
the term of the lease in the prospective statement of comprehensive income. Lease incentives received 
are recognised in the prospective statement.
CASH & CASH EQUIVALENTS
Released 
Cash and cash equivalents includes cash on hand, deposits held on call with banks, and other short-term 
highly liquid investments with original maturities of three months or less.
BANK TERM DEPOSITS
Investments in bank term deposits are initially measured at the amount invested. After initial recognition, 
investments in bank deposits are measured at amortised cost using the effective interest method, less 
any provision for impairment.
 
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PROPERTY, PLANT AND EQUIPMENT
Act
Property, plant and equipment asset classes consist of building fit-out, computers, furniture and  
fittings, office equipment, and motor vehicles. Property, plant and equipment are shown at cost,  
less any accumulated depreciation and impairment losses.
The cost of an item of property, plant and equipment is recognised as an asset only when it is probable 
that future economic benefits or service potential associated with the item will flow to the organisation 
and the cost of the item can be measured reliably. 
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount  
Information 
of the asset. Gains and losses on disposals are included in the prospective statement of comprehensive 
revenue and expense.
Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future 
economic benefits or service potential associated with the item will flow to the organisation and  
the cost of the item can be measured reliably.
Official 
The costs of day-to-day servicing of property, plant and equipment are recognised in the statement  
of comprehensive revenue and expense as they are incurred.
the 
DEPRECIATION
Depreciation is charged to the statement of comprehensive revenue and expense on all property,  
plant and equipment other than land and work in progress. Depreciation is calculated on a straight-line 
basis at rates estimated to write off the cost (or valuation) of an asset, less any residual value, over  
its useful life.
under 
Estimated useful lives and associated depreciation rates for asset classes are:
Buildings
10-70 years
1-10%
Fire appliances
10-30 years
3-10%
Motor vehicles
4-20 years
5-25%
Communications equipment
5-10 years
10-20%
Computer equipment
4-10 years
10-25%
Released 
Operational equipment
4-12 years
8-25%
Non-operational equipment
5-15 years
7-20%
Leasehold improvements
3-10 years
10-33%
 
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INTANGIBLE ASSETS
Act
Intangible assets comprise computer software and the Shared Information Technology Environment 
(SITE). Intangible assets are shown at cost less accumulated amortisation and impairment losses.
COMPUTER SOFTWARE
Costs are capitalised as computer software when they create a new asset or increase the future 
economic benefits of an existing asset. Costs capitalised for acquired computer software licences 
include the costs incurred to acquire and bring the software into use. Costs capitalised for internally 
developed computer software include the costs incurred in the development phase only. Expenditure 
incurred on research is recognised in the statement of comprehensive revenue and expense, as well 
Information 
as costs that do not meet the criteria for capitalisation (including personnel training and software 
maintenance).
SHARED INFORMATION TECHNOLOGY ENVIRONMENT (SITE)
SITE is a systems and technology platform that supports receiving calls and dispatching resources to 
emergency incidents. These SITE assets include computer-aided dispatch software, land mobile radio 
network and associated telecommunications structures. SITE is primarily housed in the communication 
Official 
centres shared with the New Zealand Police. The value capitalised reflects the organisation’s 
proportional ownership. The New Zealand Police maintains SITE and proportionally charges the 
organisation. This charge is recognised in the statement of comprehensive revenue and expense.
the 
AMORTISATION
Amortisation is charged to the statement of comprehensive revenue and expense on a straight-line 
basis at rates estimated to write off the cost of an asset, less any residual value, over its useful life. 
under 
Estimated useful lives and associated amortisation rates for asset classes are:
Computer software internally generated
4-10 years
10-25%
Computer software purchased
4-10 years
10-25%
SITE
4-10 years
10-25%
IMPAIRMENT OF NON-FINANCIAL ASSETS
Property, plant and equipment, and intangible assets that have a finite useful life are reviewed for 
Released 
impairment whenever events or changes in circumstances indicate that the carrying amount may not 
be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount 
exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs 
to sell and value in use.
 
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PAYABLES
Act
Payables are recorded at their face value.
EMPLOYEE AND VOLUNTEER ENTITLEMENTS
A provision for employee and volunteer benefits is recognised as a liability when the benefits have been 
measured but not paid.
Benefits to be settled within 12 months of balance date are calculated at undiscounted current rates  
of pay according to the amount of the accrued entitlements at current rates of pay.
Information 
Benefits that are payable beyond 12 months, such as long service leave, retirement leave and gratuities 
for both paid and volunteer personnel, are calculated on an actuarial basis. The calculations are based 
on information about:
•  Likely future entitlements accruing to personnel, based on years of service, years to entitlement, the 
likelihood that personnel will reach the point of entitlement and contractual provisions; and
•  The present value of the estimated future cash flows.
Official 
The discount rate is based on the weighted average of interest rates for government stock, with terms 
to maturity similar to those of the relevant liabilities. The inflation factor is based on the expected long-
the 
term increase in remuneration for employees. Movements in the actuarial valuations are recognised in 
the statement of comprehensive revenue and expense.
SUPERANNUATION SCHEMES
Defined contribution schemes
under 
Contributions to KiwiSaver, the State Sector Retirement Savings Scheme and the National Provident 
Fund are accounted for as defined contribution superannuation schemes and are expensed in the 
statement of comprehensive revenue and expense as they fall due.
Defined benefit schemes
The organisation makes contributions to the National Provident Fund Defined Benefit Plan Contributors 
Scheme (the scheme), which is a multi-employer defined benefit scheme. It is not possible to determine 
from the terms of the scheme the extent to which the surplus/(deficit) will affect future contributions 
by individual employers, as there is no prescribed basis for allocation. Although this is a defined benefit 
Released 
scheme, there is insufficient information to account for the scheme as a defined benefit scheme. 
Therefore, the scheme is accounted for as a defined contribution scheme.
 
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GOODS AND SERVICES TAX (GST)
Act
All items in the financial statements are presented exclusive of GST, except for receivables and payables, 
which are presented on a GST inclusive basis. Where GST is not recoverable as input tax then it is 
recognised as part of the related asset or expense.
The net amount of GST recoverable from, or payable to, the Inland Revenue Department (IRD) is included 
as part of receivables or payables in the statement of financial position.
The net GST paid to, or received from, the IRD (including the GST relating to investing and financing 
activities), is classified as an operating cash flow in the statement of cash flows.
Information 
INCOME TAX
The organisation is exempt from income tax in accordance with the Income Tax Act 2004 . Accordingly, 
no provision has been made for income tax.
PROPERTY, PLANT AND EQUIPMENT USEFUL LIVES AND RESIDUAL VALUES
Official 
The residual value and useful life of property, plant and equipment, and intangible assets are reviewed 
at each balance date. Assessing the appropriateness of useful life and residual value estimates requires 
the organisation to consider a number of factors, such as the physical condition, expected period of use 
and expected disposal proceeds from the future sale of the asset. 
the 
An incorrect estimate of the useful life or residual value will impact the depreciation or amortisation 
expense recognised in the statement of comprehensive revenue and expense, and the carrying amount 
of the asset in the statement of financial position. The organisation minimises the risk of this estimation 
process by:
under 
•  Performing asset verifications
•  Revaluing land and buildings
•  Impairment testing
•  Asset replacement programme.
The organisation has not made significant changes to past estimates of useful lives and residual values.
FINANCIAL INSTRUMENTS
Released 
The organisation, as part of its everyday operations, is party to financial instruments that have been 
recognised in these financial statements. These financial instruments include accounts payable and 
accounts receivable, cash and short term deposits.
 
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All financial instruments are recognised in the prospective statement of financial position, and revenues  Act
and expenses in relation to all financial instruments are recognised in the prospective statement of 
comprehensive revenue and expense.
STATEMENT OF CASH FLOWS
Cash means cash balances on hand, held in bank accounts, demand deposits and other highly liquid 
investments in which the organisation invests as part of its day-to-day cash management.
Operating activities include cash received from all income sources of the organisation and records  
cash payments made for the supply of services. 
Information 
Investing activities are those activities relating to the acquisition and disposal of non-current assets.
The cash statement has been prepared using the direct method subject to the netting of certain  
cash flows.
CAPITAL INTENTIONS
Official 
The organisation is forecasting to purchase office equipment, information technology items, building 
fit-out, furniture and fittings and motor vehicles/fire appliances during the period covered by this 
Statement of Performance Expectations.the 
under 
Released 
 
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FIRE AND EMERGENCY 
NEW ZEALAND BOARD 
OF DIRECTORS
Act
Hon. Paul Swain, 
Dr Nicola Crauford,  
Information 
QSO Chair
Deputy Chair
Official 
the 
Peter Drummond MNZM
Te Arohanui Cook
Angela Hauk-Willis
under 
Released 
 
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Act
Information 
Official 
the 
under 
Released 
STATEMENT OF 
PERFORMANCE 
EXPECTATIONS 
FIRE AND EMERGENCY 
NEW ZEALAND
2017–2018
www.fireandemergency.nz