DHB financial analysis

Thai Quoc Khanh made this Official Information request to Office of the Controller and Auditor-General

The request was successful.

From: Thai Quoc Khanh

Dear Office of the Controller and Auditor-General,

I have read several audited reports on health sector. Also, I did examine the financial data of DHBs (published on Ministry of Health website). As I am not specialised in this area, could you please kindly explain more on the following issues:

1. According to Schedule 1 provided by Ministry of Health, the surplus (deficit) are the consolidated figures including funder, provider and governance. Could you please explain the differences among these arms. Also, in order to separate the results, whether each DHB organises the accounting system to reflect activities of each arm independently.

2. While Schedule 3 only reflects the financial performance for Provider arm, Schedule 6 presents the Balance sheet of each DHB. In this case, I doubt that the balance sheet might capture the assets and capitals for not only provider arm but also other arms. If possible, could you please disentangle my suspect.

Thank you very much for your consideration,

Yours faithfully,

Thai Quoc Khanh

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From: enquiry
Office of the Controller and Auditor-General

Tēnā koe Thai Quoc Khanh


Thank you for your email sent on 3 November 2018.


We’ve passed your email on to the person best placed to consider it.  We
try to respond to all correspondence within 15 working days. If we can’t
give you a response to the matters you’ve raised in those 15 working days,
we will get in touch to let you know when you can expect a response.


Ngā mihi,


Hannah Riley

Personal Assistant


Office of the Auditor-General Te Mana Arotake

Improving the public’s trust in, and the performance of, the public sector

100 Molesworth St, Thorndon, Wellington 6011 | PO Box 3928, Wellington

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From: Stephanie Hill
Office of the Controller and Auditor-General

Dear Thai Quoc Khanh

Thank you for your request. I apologise for the delay in responding.

1. District Health Boards (DHBs) organise their spending into the three classifications used in Schedule 1. The meaning of these classifications is:

• Funder : This reflects the DHB's role in funding health services in the district. This includes the Funder arm funding services that the DHB provides directly (i.e. as the ‘Provider’), and also funding services provided by others - for example primary health organisations and non-government organisations such as Plunket.
• Provider: This is the money the DHB spends on services that it provides directly - hence it is the DHB spending as a 'Provider'. These are primarily hospital services.
• Governance: This is the DHB's spending on its governance, i.e. the costs of servicing the Board and associated committees.

2. Schedule 6 represents the balance sheets of the DHBs as a whole. Please note these schedules are unaudited so may show some differences to those in the audited annual reports.

If you have more detailed questions about the financial arrangements for DHBs, the Ministry of Health is the government department responsible for funding and monitoring DHBs. They may also be able to help you with your enquiries.

Yours sincerely

Greg Goulding
Sector Manager, Parliamentary Group
Office of the Controller & Auditor-General

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