STATEMENT OF PERFORMANCE EXPECTATIONS - FOR THE YEAR ENDING 30 JUNE 2022 F.8 - NZ On Air
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F.8 TAUĀKĪ KAWATAU STATEMENT OF PERFORMANCE EXPECTATIONS FOR THE YEAR ENDING 30 JUNE 2022 The Collective, Boxed Media for RNZ
This Statement of Performance Expectations reflects NZ On Air’s proposed performance targets and forecast financial information for the year ahead. It is produced in accordance with s149E of the Crown Entities Act 2004. The forecast financial statements and underlying assumptions in this document have been authorised by the Board of NZ On Air in accordance with its role under the Crown Entities Act 2004. It is not intended to update the forecast financial statements subsequent to presentation. DR RUTH HARLEY, CNZM OBE Chair PHILIP BROUGHTON Chair of Audit & Risk Committee 30 June 2021
NZ ON AIR STATEMENT OF PERFORMANCE EXPECTATIONS 1
HE RĀRANGI TAKE
CONTENTS
1 4 6 7
OUR PERFORMANCE
INFORMATION: ORGANISATIONAL
STRATEGIC
WHO WE ARE THE NZ MEDIA HEALTH AND
PERFORMANCE
FUND CAPABILITY
FRAMEWORK
KO MĀTOU HE PŪNAHA HEI NZ MEDIA FUND: TĀ MĀTOU TŪ
TĒNEI WHAKAMAHERE MŌ NGĀ MAHINGA ME TE PITO
p. 2 MAHI WHAIHUA p. 6 WHAIHUA p. 8 MATA p. 16
2 5 8
6.1 Measuring
THE YEAR WHAT WE well-being – FORECAST
AHEAD AT cultural identity FINANCIAL
WILL DO
A GLANCE STATEMENTS
HEI PAKU HEI WHAI MĀ
Mō Te Hauora HE TIROHANGA
TIROHANGA
WHAKAMUA p. 4
MĀTOU
p. 7 – Te Tuakiri WHAKAMUA MŌ
TE PŪTEA p. 17
Tangata 10
3 9
OUR 6.2 Measuring STATEMENT OF
CONTRIBUTION
TO SECTOR
activity ACCOUNTING
POLICIES
OUTCOMES He Arotakenga
HEI TAUTOKO TAUĀKĪ
Mō Ngā Mahi 12 MAHERE MAHI
p. 22
MĀ MĀTOU TE
RĀNGAI p. 5 MONI2 NZ ON AIR STATEMENT OF PERFORMANCE EXPECTATIONS
1 WHO WE ARE
KO MĀTOU TĒNEI
New Zealanders enjoy content that reflects our identity, our unique voices,
our own stories and songs. Public media reinforces our culture. It helps
us to connect with and understand each other better, engage with
democracy, broaden our thinking, and reflect on our place in the world.
Local content allows New Zealanders These principles include enriching content ideas from a growing pool Broadcasting Act and in supporting the
to celebrate our culture in a way the New Zealand cultural experience, of talented creators in our industry. Crown as a Te Tiriti o Waitangi partner,
global content never can. It increases improving diversity of media content Audience fragmentation combined to promote te reo Māori and embrace
understanding of the diversity in many forms, ensuring content is with a challenging commercial media greater understanding of te ao Māori.
of cultures in New Zealand today, accessible, strengthening community environment has increased the case We also have a responsibility to deliver
and enriches our communities. life, and promoting informed debate. for funding quality public media content for diverse audiences; including
Our challenge is to reflect ALL content, on a range of platforms. women, youth, persons with disabilities,
Through four funding streams within
New Zealanders and to reach them and ethnic and religious minorities.
the NZMF: Scripted, Factual, Music, NZ On Air plays a central role in the
on platforms they use. Authenticity
and Platforms, NZ On Air supports public media fabric, alongside RNZ, The tastes and needs of New Zealand’s
is vital. Audiences respond to content
content made by an ever wider range Te Māngai Pāho, Māori Television audiences are as diverse as the
that is made by and features ‘people
of people, appearing on a multitude and Crown-owned TVNZ. Collectively audiences themselves, which is why
like us’ – it’s the strength of local.
of platforms, and reaching more we deliver trusted public media to our Mission is: To foster and fund great
NZ On Air’s NZ Media Fund (NZMF)1 New Zealanders. There is no shortage many different audiences. NZ On Air NZ media content that reflects the
is founded on public media principles. of high quality, creative and exciting has a responsibility both under the diverse communities of Aotearoa.
1 See Funding_Strategy_for_website_updated_12_June_17_FINAL_R5jug19.pdfNZ ON AIR STATEMENT OF PERFORMANCE EXPECTATIONS 3
OUR MISSION
OUR VISION TO FOSTER AND FUND
CONNECTING AND GREAT NZ MEDIA CONTENT
THAT REFLECTS THE
REFLECTING AOTEAROA DIVERSE COMMUNITIES
OF AOTEAROA4 NZ ON AIR STATEMENT OF PERFORMANCE EXPECTATIONS
2 THE YEAR AHEAD AT A GLANCE
HEI PAKU TIROHANGA WHAKAMUA
Additional funding flowing from In 2021/22 we will focus on: improving knowledge and
COVID-19 relief will create new work understanding of te reo Māori,
The year ahead will be Supporting the production of
and responsibilities. We have been tikanga Māori and Te Tiriti o Waitangi
diverse local content and ensuring
challenging and rewarding as endorsed with a significant increase in compliant practices for all staff
it reaches its audiences
we navigate an environment our agency’s scope and responsibilities, • Growing our sector leadership
• Establishing and refining
that continues to change with $45m2 additional funds to support through commissioning and
processes that deliver new
rapidly. Compounding public interest journalism through until publishing timely and insightful
Crown funding efficiently to
the end of the 2023 financial year. In data and research that
a fast-changing media support public interest journalism
addition, we are working alongside the informs funding decisions.
environment, COVID-19 NZ Film Commission and Te Māngai • Looking for maximum impact and
continues to cause Pāho to deliver the new $50m Te quality outcomes from additional Collaborating with the sector
uncertainty. Maintaining Puna Kairangi/Premium Productions funds for music and platforms to maximise our contribution
consistent funding rounds for International Audiences Fund. • Investing strategically in content to public media outcomes
is one of the most important and industry development to • Aligning and collaborating
We support many forms of public media: with Te Māngai Pāho, NZ Film
things we can do to ensure foster more creative innovation,
drama, documentary, specialist current Commission, NZ Music Commission
cash flows through the and provide pathways for
affairs and public interest journalism, and other agencies, guilds and
emerging creative voices
creative economy. We children’s content, content for other platforms where we can so public
must also invest in creating targeted audiences, and music. The • Improving data collection and
media funding benefits the largest
breadth of work means we need to take analysis to better inform our funding
resilience to deal with number of New Zealanders
care to retain a strategic approach to strategies, improvethe discoverability
future uncertainties. of funded content, and reach • Ongoing engagement with the
our investments and manage decisions,
less well-served audiences. Ministry for Culture and Heritage,
with regard to our risk framework.
RNZ and TVNZ to progress the
Demonstrating strategic and Strong Public Media programme,
organisational leadership to the sector also contributing to the strengthening
• Continuing our commitment of Māori media, and ensuring
to a collaborative approach to public media is fit for the future.
Māori Crown relations through
2 From a total $55m fund. $10m distributed in 2020/21NZ ON AIR STATEMENT OF PERFORMANCE EXPECTATIONS 5
3 OUR CONTRIBUTION TO SECTOR OUTCOMES
HEI TAUTOKO MĀ MĀTOU TE RĀNGAI
The Government is committed 2. Public media in New Zealand is: Our impact is magnified by our work
to ensuring that future generations • operationally and editorially alongside and in collaboration with
We align with the of New Zealanders can access independent; the other arms of the public media
Government’s priority content that reflects their languages, system. Our investments in the media
• securely and sustainably funded;
outcomes for the cultural experiences and communities in and music sectors underpin thousands
ways that meet their needs and • able to respond effectively to an of jobs and careers, and maintain a
sector, including those
interests. The Government has evolving operating environment vibrant domestic sector that services
for public media.3 and relevant to changing
adopted the following public media growing international demand.
Our work contributes to the outcomes to provide guidance consumer preferences, in
to the public media entities: particular younger audiences;
Government’s identified
priorities for the cultural • complementary to and
1. New Zealand audiences choose to
collaborative with private media.
sector: to create a stable access mainstream and targeted
sustainable cultural sector content and services that support: 3. Public media play an
post-COVID-19, a vibrant and • their needs and interests as integral role in contributing
innovative sector, and better people living in Aotearoa, and to New Zealand being:
access and participation which in particular reflect the • a connected, informed, cohesive
for New Zealanders in language and experiences of and independent nation;
Māori and Pacific peoples, and
diverse and rich cultural • a healthy, participative democracy;
other under-served audiences;
experiences. Our work • confident in and aware
• their ability as New Zealanders
also directly contributes of our unique identity,
to be informed and engaged cultures and languages.
to Public Media Outcomes. members of our participative
democracy and open civic society;
• their access to a range
and diversity of content
that they value and trust.
3 As stated in the Government’s Our Plan – The Government’s Priorities for New Zealand and also cited in the Minister’s Letter of Expectations6 NZ ON AIR STATEMENT OF PERFORMANCE EXPECTATIONS
4 OUR HE PŪNAHA HEI WHAKAMAHERE MAHI WHAIHUAA
STRATEGIC AND
PERFORMANCE FRAMEWORK
FIGURE 1: Our strategic framework
OUR VISION OUR GOALS OUR PROMISE
Our strategic framework CONNECTING AND We make the following
Our investment strategy is
shows what drives NZ On Air REFLECTING AOTEAROA expressed as the NZ Media commitments about how
and how we work. Fund. Its goals are: we will work. We will be:
INCLUSIVE so that content
OUR MISSION GOAL 1
reflects our diverse communities
Our work programme is largely QUALITY CONTENT
delivered through the single funding TO FOSTER AND FUND NZ audiences enjoy well-made CLEARLY FOCUSED
strategy, the NZ Media Fund. Supporting GREAT NZ MEDIA CONTENT on content outcomes
local content that matters
the deliverables under the NZMF is THAT REFLECTS THE
DIVERSE COMMUNITIES INFORMED CONTRIBUTORS
our work in industry development (the GOAL 2
OF AOTEAROA. as public media experts
IDF), research and sector leadership. DIVERSE CONTENT
LOOKING FOR CONTINUAL
Founded on core public media NZ audiences value
IMPROVEMENT and open to
principles, the NZMF has four funding local content made for a
new ideas
streams – Scripted, Factual, Music range of communities
and Platforms. Content investments RESPONSIBLE STEWARDS
are selected to add cultural value, no GOAL 3 who are careful with public funds
matter where the content sits on the DISCOVERABLE
FRIENDLY FACES who are
spectrum, from serious and informative CONTENT
collaborative and approachable
to provocative and entertaining. NZ audiences can find and
appreciate local content POSITIVE because we
love what we do
We support these goals by
ECONOMIC CONTRIBUTORS
collaborating with others in the
who actively consider economic
public media space to maximise
outcomes, demonstrating sector growth goals
leadership, and informing our FAIR TO ALL with transparent
work and the sector’s work and simple processes
with robust research and
data, and maintaining robust
investment processes.NZ ON AIR STATEMENT OF PERFORMANCE EXPECTATIONS 7
5 WHAT WILL WE DO?
HEI WHAI MĀ MĀTOU? FIGURE 2: Funding strategy summary
NZ MEDIA FUND
Delivery of funds through the NZMF, along with our Industry Development
Fund, are activities purchased by the Minister of Broadcasting, Communications
and Digital Media under the appropriation Public Broadcasting Services.4
FACTUAL SCRIPTED MUSIC PLATFORMS
The NZMF’s three goals – Quality, In music, our support adds opportunities
Diversity and Discoverability – and for recording artists, video content makers,
four funding streams provide a simple, and content promotion. A radio or online OUR AIM
flexible approach to navigating a dynamic hit can boost streaming revenue and record
environment. The Scripted, Factual and sales, build audiences for live shows,
Music streams are open and contestable. stimulate the wider music economy and GREAT NEW ZEALAND PUBLIC
Platforms is a closed funding stream help build international success. Additional MEDIA IS VALUED AND ENJOYED
supporting selected entities to provide funding is creating new opportunities BY NEW ZEALAND AUDIENCES
a wide range of public media content. to add greater diversity to New Zealand
music on radio and streaming platforms.
We will continue to support different GOALS
types of local audio/visual content for both Our investments help emerging talents
general and targeted audiences to enjoy. to flourish and develop sustainable creative
In 2021/22 we add to this a broad range careers. Our research helps to identify
of public interest journalism, supported areas where more investment can be
with funds announced by Government targeted. This is especially relevant with our GOAL 1 GOAL 2 GOAL 3
in February 2021 in response to COVID-19 annual Diversity Report and a new research QUALITY CONTENT DIVERSE CONTENT DISCOVERABLE CONTENT
HE HUA KOUNGA HE HUA KANORAU HE HUA KITEA
impacts on an already fragile commercial project looking into on-screen inclusion
– NZ audiences enjoy – NZ audiences value local – NZ audiences can find
news media environment. The Public and representation. Through these projects well-made local content content made for a range of and appreciate local content
Interest Journalism Fund will be delivered we identify and can monitor improvement that matters communities
Funded content will be
via three pillars of investment activity in representation of different ethnicities available and enjoyed by
Well-made* funded content New Zealanders will
in support of Projects, Roles and Industry and gender in work behind and in front will reflect New Zealand in appreciate local content audiences on the platforms
Development. An additional $50m of camera, and in the music industry. engaging and informative made for audiences with they use
Te Puna Kairangi/Premium Productions ways diverse interests
Our sector development and support Funded content will be
for International Audiences Fund, co- Funded content will be Content creators will have online and free to watch or
work will increase in the coming year,
administered with the NZ Film Commission seen to be different to a range of opportunities listen to at the beginning of
with one-off funding to address sector similar local content made to make different types of its life and at regular points
and Te Māngai Pāho, will tell New Zealand
capability and resilience in the COVID era. without public funding local content thereafter
stories on the global stage.
4 The non-departmental output expense, Public Broadcasting Services sits within Vote Arts,
Culture and Heritage, administered by the Ministry for Culture and Heritage *means relative to the level of funding and the context of other content on the platform.8 NZ ON AIR STATEMENT OF PERFORMANCE EXPECTATIONS
6 PERFORMANCE
MŌ NGĀ MAHINGA WHAIHUA
INFORMATION:
NZ MEDIA FUND
As the NZMF is designed to be a manage our finances and ensure
simple and flexible model that will equity levels remain positive.
The targets and budgets enable us to adapt to a fast-changing
Additional Crown funding to address
below show how we intend market, the budgets are indicative
COVID impacts on our sectors will be
to invest our funding and only and may change depending on
targeted towards Factual (Journalism),
measure our progress. applications and other market factors.
Music and Capability. New funding
We continue to work on NZ On Air has one reportable class to support public interest journalism
developing ways to measure of outputs, the NZMF, which is a commenced in early 2021 and also
the cultural impact of our reportable class for the purposes comes into the 2021/22 budget. This
work on New Zealanders. of the Crown Entities Act 2004. will require new performance measures
We also report on how which are under development.
The expected revenue and proposed
effectively we contribute expenses for the NZMF class of outputs In addition, we are working with the
to sector leadership. are shown in Table 4 at the end of NZ Film Commission to allocate an
this section. additional $50m fund for up to five
feature films or limited series screen
As a funding agency charged with
productions. This funding is held by
purchasing cultural content, there is
the Ministry for Culture and Heritage.
no specific requirement to maintain
set levels of equity. We prudentlyNZ ON AIR STATEMENT OF PERFORMANCE EXPECTATIONS 9
FIGURE 3: NZMF budget summary5
NZ MEDIA FUND
SCRIPTED MUSIC
23 4
SCRIPTED FACTUAL
% % audio/visual drama, audio/visual documentary
comedy, animation and and factual projects made
other entertaining content for diverse audiences
requiring a planned
creative approach
FACTUAL – FACTUAL – MUSIC PLATFORMS
JOURNALISM OTHER
14% 23%
delivers new music to radio and provides operating funding
streaming services and provides to specially targeted
break through opportunities services to create and
to selected artists and actively deliver audio/visual public
promotes New Zealand music media content of particular
to increase its discovery cultural or social value
in a crowded market
PLATFORMS – PLATFORMS –
RNZ OTHER
25% 11% 5 Platforms includes $43.506m funding for RNZ. This amount is in accordance with Government
policy for RNZ funding for 2021/22, as advised by Ministers. RNZ’s detailed targets and end of
year performance reporting are presented in the accountability documents of both RNZ and the
Ministry for Culture and Heritage. We include one significant RNZ audience measure in Table 1.10 NZ ON AIR STATEMENT OF PERFORMANCE EXPECTATIONS
6.1 MEASURING WELL-BEING – CULTURAL IDENTITY
MŌ TE HAUORA – TE TUAKIRI TANGATA
In Table 1 we set out how we measure the impact of our work on wellbeing. We will enhance the qualitative measures
in future years once we can assess the wider Indicators Aotearoa work being completed.
TABLE 1: Impact measures
2021/22 Target 2020/21 Target 2020/21 Estimate 2019/20 Actual
CULTURAL VITALITY AND VIBRANCY
Strategic impact: Quality and Diversity
Indicator: Public media is valued and contributes positively to belonging
and different NZ cultural experiences
New Zealanders believe NZ On Air supports local public media important to 75% 75% 75% 80%
New Zealanders
New Zealanders aware of our support for content like that content 70% 70% 70% 69%
New Zealanders agree that RNZ provides a valuable service to New Zealand 70% 70% 59% 59%
Percentage of completed productions of sufficient quality to be accepted for 99% 99% 99% 99%
broadcast or uploading
NZ audiences appreciate the diversity of public media funded by NZ On Air 75% 75% 75% 77%
Content in more than 40 languages (including 9 Pacific) is supported Achieve Achieve Achieve Achieved (49 languages
including 9 Pacific)
Pacific people agree PMN Niu and PMN 531 provide culturally relevant 75% Biennial measure Biennial measure 94.8%
content
Percentage of NZ Music content on commercial radio: target agreed by the 20% 20% 20% 19.27%
Minister and the Radio Broadcasters Association
Percentage of NZ Music content on alternative radio At least 50% At least 50% 60% 60.24%
Sector stakeholders are satisfied with the quality of the research, leadership
and policy contribution from NZ On Air:
• The majority of stakeholders believe NZ On Air’s leadership, research 75% 75% 75% New Measure
and policy input is valuableNZ ON AIR STATEMENT OF PERFORMANCE EXPECTATIONS 11
2021/22 Target 2020/21 Target 2020/21 Estimate 2019/20 Actual
CULTURAL EFFICACY AND COMPETENCE
Strategic impact: Discoverability
Indicator: Professionally-made public media finds its audience and
contributes to a quality cultural experience
Percentage of first run6 funded prime time (6 pm to 10.30 pm) content for More than 50% More than 50% 55% 58%
TV achieving average audiences of 100,000 or higher (excludes on demand
audiences)
Percentage of funded content achieving more than 50,000 views in its first More than 50% More than 50% 50% 43%
6 months online7
Percentage of released singles from New Music Projects achieving at least 60% 60% 60% 64.4%
250,0008 online plays within 12 months9
Percentage of released singles from New Music Singles achieving at least 60% 60% 60% 58.5%
50,000 online plays within 12 months of release
Average number of NZ radio plays achieved by singles from New Music
Projects within 12 months of release:
• Mainstream 750 750 750 710
• Niche 250 250 250 Included above
Average number of NZ radio plays achieved by singles from New Music
Singles within 12 months of release:
• Mainstream 250 250 400 317
• Niche 100 100 250 Included above
6 Content not previously shown on TV
7 This measures funded content which completes its first 6 months online in the year under review. Data for online views is currently provided by each platform.
Work is progressing in NZ and internationally to establish a consistent approach to measuring online views
8 New Music Projects fund established artists with higher expectations of the number of plays than New Music Singles
9 This measures singles which complete their first 12 months post release in the year under review12 NZ ON AIR STATEMENT OF PERFORMANCE EXPECTATIONS
6.2 MEASURING ACTIVITY
HE AROTAKENGA MŌ NGĀ MAHI
In Table 2 we set out how we will measure performance against our investment goals and strategic objectives.
TABLE 2: Funding measures
2021/22 Target 2020/21 Target 2020/21 Estimate 2019/20 Actual
What we will do
Our Investment Principles are followed for all funding decisions (cultural 100% 100% 100% 100%
value, content balance, risk, competition, value for money, no duplication,
leverage, partner capability, fairness)
A majority of the NZ Media Fund is invested in contestable content10 At least 55% At Least 55% 59% 61%
Percentage of production funding from the Scripted and Factual streams At least 25% At least 25% 40% 40%
for targeted audiences including s36(1)(c)11 of the Broadcasting Act 198912
Percentage of total funded hours for Scripted and Factual content that At least 60% At least 60% 70% 72%
is diverse13
Number of individual songs funded through Single and Project applications
will be at least:14
• Mainstream 210 210 210 159
• Niche 140 140 140 102
• Focus rounds15 60 60 60 New measure
10 RNZ funding is 25% of total funding
11 Includes children, youth, persons with disabilities and minorities in the community
12 Wording amended to clarify this relates to Scripted and Factual production funding
13 Diverse content is content that showcases the stories and interests of particular NZ cultural and community groups
14 Music applications are a video, or a recorded song plus a video, or a music project. We cannot separately forecast which type of application will be received
15 Includes focus rounds for Pasifika, Children’s music, te reo MāoriNZ ON AIR STATEMENT OF PERFORMANCE EXPECTATIONS 13
2021/22 Target 2020/21 Target 2020/21 Estimate 2019/20 Actual
The number of average weekly hours of captioning and audio description
produced for broadcast and online will be at least:
• Captioning 160 160 160 38218
• Audio description 27 27 27 6618
Number of Scripted and Factual hours funded (includes all formats, e.g. At least 1,020 At least 1,020 1,020 1,135
television, online, radio, (excludes Public Interest Journalism projects))
The number of hours funded for features promoting NZ Music At least 2,500 hours At least 2,500 hours 2,500 2,477
Number of targeted development activities for NZ artists in conjunction with At least 3 At least 3 3 1
streaming platforms [estimated 3 streaming platforms involved]
Number of pieces of industry research published At least 2 At least 2 3 New measure
Number of RFPs issued for targeted industry capability development 16
Up to 2 Up to 2 2 New measure
Investments in Public Interest Journalism are spread across local, regional, Achieve Achieve N/A N/A
national and targeted audiences 17
While we aim to balance funding by audience type, content type, and genre, we can only achieve this if we receive sufficient applications that meet our funding criteria
and investment principles.
We aim to spend a sensible minimum on overheads so we have the maximum available to invest in content; and provide high quality service delivery.
However, we are in a current modest growth phase to adjust to increased demand and work associated with new funding.
16 The nature and impact of these RFPs will be reported in the annual report
17 Actual funding allocated by applicant, title and funding pillar (Project, Role, Industry Development) will be reported in our 2021/22 Annual Report. Additional measures to be established.
18 Measures the number of hours broadcast. From 2020/21, measures the number of hours produced. In 2019/20, the actual average weekly hours produced were Captioning:
142 hours; Audio-Description 21 hours.14 NZ ON AIR STATEMENT OF PERFORMANCE EXPECTATIONS
Table 3 sets out core operating efficiency measures; Table 4 sets out expected revenue and proposed expenses.19
TABLE 3: Operating measures
2021/22 Target 2020/21 Target 2020/21 Estimate 2019/20 Actual
How we will do it (operating goals)
No investment decision or process has a significant adverse judicial review 0 0 0 0
or Ombudsman finding
Percentage of complete applications received by deadline determined at 99% 99% 99% 99.7%
the next funding round
Percentage of funding decisions notified to applicants within 5 working days 99% 99% 99% 99%
of Board meeting
Percentage of funding contracts correctly issued within 15 working days once 99% 99% 99% 93%
conditions precedent are met
Percentage of payments correctly made within 10 working days of receiving 99% 99% 99% 99%
a valid invoice once contract conditions are met
19 NZ On Air does not propose to supply any class of outputs in the financial year that is not a reportable class of outputs. s149E(1)(c)NZ ON AIR STATEMENT OF PERFORMANCE EXPECTATIONS 15
TABLE 4: Summary of forecast revenue and output expenditure
Revenue 2021/22 Budget 2020/21 Budget 2020/21 Estimate 2019/20 Actual
$000 $000 $000 $000
Crown revenue 175,725 180,572 174,536 147,266
Other revenue 1,100 1,800 1,800 2,524
Total revenue 176,825 182,372 176,336 149,790
Output expenses %
New Zealand Media Fund investments 95.6 171,397 180,433 174,150 143,894
Capability Fund 0.6 1,000 1,000 1,000 0
Industry development 0.3 600 450 450 376
Total funding 96.5 172,997 181,883 175,600 144,270
Administration services 3.5 6,308 4,867 5,062 3,692
Total output expenses 100 179,305 186,750 180,662 147,962
Surplus/(deficit) (2,480) (4,378) (4,326) 1,82816 NZ ON AIR STATEMENT OF PERFORMANCE EXPECTATIONS
7 ORGANISATIONAL HEALTH AND CAPABILITY
TĀ MĀTOU TŪ ME TE PITO MATA
Although growing to meet workload demands, we remain a small entity with 25-30 staff. We rely on our people being skilled, multi-functional
and adaptable. We have formal good employer and personnel policies and a commitment to equal employment opportunities. We do not
tolerate harassment or discrimination of any type. Our measures are summarised in Table 6.
TABLE 6: Health and capability performance measures
Goal Measure/Target 2021/22 Target 2020/21 Target 2019/20 Actual
Focus recruitment, training and remuneration Full time staff turnover is no more than three Achieve Achieve 2
policies on attracting and retaining skilled, flexible, people per annum
efficient and knowledgeable team players
Individual staff training needs are assessed 100% 100% 100%
annually
External salary comparisons are conducted Next planned Some positions Next planned
regularly to ensure staff are paid fairly for 2022/23 assessed for 2020/21
Staff are committed to the agency and its work Staff engagement surveys are conducted at least Next planned Survey to be Next planned
bi-annually; results target to be in the top quartile for 2022/23 conducted for 2020/21
of the cultural sector
Health and safety best practice is well- Health and safety plan in operation; reported Achieve Achieve Achieved
implemented and appropriately reported safety hazards are attended to promptly; significant
hazards are attended to immediately
Zero tolerance of harassment, bullying and Achieve Achieve Achieved
discrimination. Immediate investigation if any No instances
instances are reported
Incorporate equal employment opportunity EEO Principles are included in all relevant 100% 100% 100%
principles in staff selection and management, to documents and practices
achieve as diverse a workforce as possible within
the limits of our small size
All staff are offered lessons in te reo Māori and/or Minimum of annual lessons in tikanga Māori All staff All staff New measure
tikanga Māori at least annually20 and te reo Māori offered
20 We are putting in place a more comprehensive plan to enable NZ On Air to meet the requirements of the Maihi KaraunaNZ ON AIR STATEMENT OF PERFORMANCE EXPECTATIONS 17
8 FORECAST FINANCIAL STATEMENTS
HE TIROHANGA WHAKAMUA MŌ TE PŪTEA Rūrangi,
Autonomouse
for WatchMe18 NZ ON AIR STATEMENT OF PERFORMANCE EXPECTATIONS
STATEMENT OF FORECAST COMPREHENSIVE REVENUE AND EXPENSE
For the year ending 30 June 2022
2021/22 2021/22 2020/21 2020/21
Budget Budget Budget Estimate
$000 $000 $000 $000
Revenue
Crown revenue 175,725 180,572 174,536
Other revenue 1,100 1,800 1,800
Total revenue 176,825 182,372 176,336
Operating expenditure
Administration services 6,308 4,867 5,062
Total operating expenditure 6,308 4,867 5,062
Funding expenditure
NZ Media Fund21
Scripted 39,136 59,285 49,769
Factual – other 39,136 - 52,125 58,294
Factual – Public Interest Journalism 24,136 - - -
Factual – Total 63,272 - -
Music 6,452 7,386 7,871
Platforms 62,537 61,63722 58,216
Total NZ Media Fund 171,397 180,433 174,150
Development and support
Capability Fund 1,000 1,000 1,000
Industry Development 600 450 450
Total funding expenditure 172,997 181,883 175,600
Total expenditure 179,305 186,750 180,662
Net surplus/(deficit) for the year (2,480) (4,378) (4,326)
Other comprehensive revenue and expense - - -
Total comprehensive revenue and expense (2,480) (4,378) (4,326)
21 The allocation of NZMF funds across the four funding streams is indicative only and depends on receiving sufficient applications that meet our funding criteria and investment principles.
The Board may reallocate between funds during the year as necessary to achieve NZ On Air outcomes.
22 Includes $43.506m for RNZ.NZ ON AIR STATEMENT OF PERFORMANCE EXPECTATIONS 19
STATEMENT OF FORECAST FINANCIAL POSITION
As at 30 June 2022
2021/22 2020/21 2020/21
Budget Budget Estimate
$000 $000 $000
Current assets
Cash and cash equivalents 1,800 5,199 1,762
Investments 30,000 30,000 51,800
Debtors and other receivables – interest 100 200 130
Debtors and other receivables – other 1,300 1,300 1,300
Total current assets 33,200 36,699 54,992
Non-current assets
Property, plant and equipment 650 551 50
Intangible assets 290 139 40
Total non-current assets 940 690 90
Total assets 34,140 37,389 55,082
Current liabilities
Trade and other payables 300 300 300
Employee entitlements 150 150 150
Return to Crown - - 15,836
Funding liabilities 32,635 36,184 35,261
Total current liabilities 33,085 36,634 51,547
Net assets 1,055 755 3,535
Equity
Equity at 30 June 1,055 755 3,535
Total Equity 1,055 755 3,53520 NZ ON AIR STATEMENT OF PERFORMANCE EXPECTATIONS
STATEMENT OF FORECAST CHANGES IN EQUITY
For the year ending 30 June 2022
2021/22 2020/21 2020/21
Budget Budget Estimate
$000 $000 $000
Balance at 1 July 3,535 5,133 7,861
Total comprehensive revenue and expense for the year (2,480) (4,378) (4,326)
Balance at 30 June 1,055 755 3,535NZ ON AIR STATEMENT OF PERFORMANCE EXPECTATIONS 21
STATEMENT OF FORECAST CASH FLOWS
For the year ending 30 June 2022
2021/22 2020/21 2020/21
Budget Budget Estimate
$000 $000 $000
Cash flows from operating activities
Receipts from the Crown 175,725 180,572 190,372
Receipts from other revenue 500 900 469
Interest received 630 1,164 1,243
Payments to funded activities (177,623) (190,079) (182,055)
Payments to suppliers and employees (6,308) (4,680) (4,929)
Net GST 174 (100) 72
Net cash from operating activities (6,902) (12,223) 5,172
Cash flows from investing activities
Net receipts from investments 7,964 12,500 (7,300)
Purchase of intangible assets (250) (75) -
Purchase of property, plant and equipment (774) (605) (49)
Net cash flows from investing activities 6,940 11,820 (7,349)
Net increase in cash and cash equivalents 38 (403) (2,177)
Cash and cash equivalents at 1 July 1,762 5,602 3,939
Cash and cash equivalents at 30 June 1,800 5,199 1,76222 NZ ON AIR STATEMENT OF PERFORMANCE EXPECTATIONS
9 STATEMENT OF ACCOUNTING POLICIES
TAUĀKĪ MAHERE MAHI MONI
REPORTING ENTITY BASIS OF PREPARATION JUDGMENTS AND ESTIMATIONS RESERVES
The Broadcasting Commission (NZ The preparation of financial statements As a funding agency charged with
STATEMENT OF COMPLIANCE
On Air) is a Crown entity as defined to conform with PBE Standards purchasing cultural content, there is
by the Crown Entities Act 2004 and is These forecast financial statements requires judgments, estimates and no specific requirement to maintain set
domiciled and operates in New Zealand. have been prepared in accordance assumptions that affect the application levels of equity other than prudently
The relevant legislation governing NZ with New Zealand generally accepted of policies and reported amounts managing our finances and ensuring
On Air’s operations includes the Crown accounting practice. They have been of assets and liabilities, income and equity levels remain positive.
Entities Act 2004 and the Broadcasting prepared in accordance with Tier 1 expenses (where material information
Act 1989. NZ On Air’s ultimate parent PBE Standards including PBE FRS 42 on major assumptions is provided SIGNIFICANT ACCOUNTING
is the New Zealand Crown. These Prospective Financial Statements. in the relevant accounting policy POLICIES
forecast financial statements reflect These forecast financial statements or will be provided in the relevant The accounting policies set out
the operations of NZ On Air only and have been prepared to comply note). The estimates and associated below have been applied consistently
do not incorporate any other entities. with the Crown Entities Act 2004 assumptions are based on historical to all periods presented in these
These forecast financial statements are and may not be appropriate for experience and various other factors forecast financial statements.
for the year ending 30 June 2022. purposes other than complying that are believed to be reasonable
with the requirements of this Act. under the circumstances. Actual results REVENUE
NZ On Air’s primary objective is to
may differ from these estimates.
provide services to the New Zealand The actual financial results for the Revenue is measured at the fair
public. Our functions and responsibilities period covered are likely to vary The estimates and underlying value of consideration received.
are set out in the Broadcasting Act from the information presented and assumptions are reviewed on an
1989. The primary function is to serve the variations may be material. ongoing basis. Revisions to accounting Revenue from the Crown
audiences by investing in a wide estimates are recognised in the period We are primarily funded through
range of New Zealand television, radio MEASUREMENT BASIS in which the estimate is revised, if revenue received from the Crown,
and online content. The purpose is the revision affects only that period, restricted in its use for the purpose of
The measurement base adopted
to add a diversity of local content to or in the period of the revision and meeting our objectives as specified
is that of historical cost.
the almost limitless range of foreign future periods, if the revision affects in the Broadcasting Act 1989 and the
options available. NZ On Air does not The accrual basis of accounting both current and future periods. scope of appropriation of the funder.
operate to make a financial return. has been used unless otherwise
Judgments that have significant We consider there are no
Accordingly, NZ On Air has designated stated. These financial statements
effect on the financial statements and conditions attached to the funding
itself as a public benefit entity (PBE) are presented in New Zealand
estimates, with a significant risk of and it is recognised as revenue
for Financial Reporting purposes. dollars and rounded to the
material adjustment in the next year are at the point of entitlement.
nearest thousand ($000).
discussed at the end of these notes.NZ ON AIR STATEMENT OF PERFORMANCE EXPECTATIONS 23
Interest revenue FUNDING EXPENDITURE CASH AND CASH EQUIVALENTS PROPERTY, PLANT AND
Interest revenue is recognised by Funding expenditure is discretionary Cash and cash equivalents includes EQUIPMENT
accruing on a time proportion basis funding where NZ On Air has no cash on hand and deposits held Property, plant and equipment asset
the interest due for the investment. obligations to award funding on on call with banks with original classes consist of computer equipment,
receipt of the funding application. maturities of three months or less. office equipment, furniture and fittings,
Television programme It is recognised as expenditure when: and leasehold improvements. Property,
and music revenue INVESTMENTS plant and equipment are shown at
(a) the funding has been approved by
Our share of net revenue from sales of Bank Deposits cost, less accumulated depreciation
the Board;
television and music projects that we and any impairment losses.
(b) the funding recipient has been Investments in bank deposits are
have funded is recognised when it is initially measured at the amount
advised; Additions
earned to the extent that information invested. Interest is subsequently
is available to us at that time. (c) there are no substantive contractual The cost of an item of property, plant
accrued and added to the investment
conditions for the funding recipient and equipment is recognised as an
balance. A loss allowance for expected
Other revenue to fulfil; and asset only when it is probable that
losses is recognised if the estimated
Other revenue is recognised (d) it is probable (more likely than not) loss allowance is not trivial. future economic benefits or service
when it is earned. that the funded proposal will be potential associated with the item
completed. DEBTORS AND OTHER will flow to us and the cost of the
PERSONNEL COSTS RECEIVABLES item can be measured reliably.
Superannuation schemes Critical judgments in Debtors and other receivables are Where an asset is acquired at
applying accounting policies recorded at the amount due, less an
Obligations for contributions no cost, or for a nominal cost, it
– funding expenditure
to Kiwisaver and State Sector allowance for credit losses. NZ On Air is recognised at fair value when
Retirement Savings Scheme are Although from time to time an applies the simplified expected credit control of the asset is obtained.
accounted for as defined contribution approved project with no substantive loss model of recognising lifetime
superannuation schemes and are conditions to fulfil does not go ahead, expected credit losses for receivables. Disposals
recognised as an expense in the such projects are rare. Based on
In measuring expected credit Gains and losses on disposals are
surplus or deficit as incurred. experience we judge it is probable
losses, short-term receivables are determined by comparing the proceeds
that all approved commitments at 30
assessed on a collective basis as with the carrying amount of the asset.
June without substantive contractual
OTHER EXPENSES they possess shared credit risk Gains and losses on disposals are
conditions to fulfil will be completed.
Operating leases characteristics. They have been included in the surplus or deficit.
Leases that do not transfer substantially The main substantive contractual grouped based on the days past due.
all the risks and rewards incidental to condition that means a funding Subsequent costs
commitment cannot be recorded Short-term receivables are written
ownership of an asset are classified Costs incurred subsequent to initial
as expenditure is where the Board off when there is no reasonable
as operating leases. Lease payments acquisition are capitalised only when
approval is subject to confirmation of expectation of recovery. Indicators
under an operating lease are it is probable that future economic
third-party funding, and that funding that there is no reasonable
recognised as an expense on a straight benefits or service potential associated
is not in place at balance date. expectation of recovery include
line basis over the term of the lease. with the item will flow to us and the cost
the debtor being in liquidation.
of the item can be measured reliably.24 NZ ON AIR STATEMENT OF PERFORMANCE EXPECTATIONS
The costs of day-to-day servicing which the assets carrying amount Costs associated with the development We recognise a liability for sick leave to
of property, plant and equipment exceeds its recoverable amount. The and maintenance of our website the extent that absences in the coming
are recognised in the surplus or recoverable amount is the higher are expensed when incurred. year are expected to be greater than
deficit as they are incurred. of an asset’s fair value less costs the sick leave entitlements earned
to sell and value in use. The total AMORTISATION in the coming year. The amount is
DEPRECIATION impairment loss and any subsequent The carrying value of an intangible calculated based on the unused sick
Depreciation is provided on a reversal of an impairment loss are asset with a finite life is amortised on leave entitlement that can be carried
straight line basis on all property recognised in the surplus or deficit. a straight-line basis over its useful life. forward at balance date, to the extent
plant and equipment at rates that will Amortisation begins when the asset that we anticipate it will be used by
Value in use is depreciated
write off the cost of the asset over is available for use and ceases at the staff to cover those future absences.
replacement cost for an asset where
their useful lives. The useful lives the future economic benefits or date that the asset is derecognised.
and associated depreciation rates The amortisation charge for each period FUNDING LIABILITIES
service potential of an asset are not
have been estimated as follows: primarily dependent on the asset’s is expensed in the surplus or deficit. We recognise a liability for funding
ability to generate net cash inflows expenditure when all the following
Computer 3 years 33.3% The useful lives and associated
and where we would, if deprived of conditions have been met:
equipment amortisation rates of intangible assets
the asset, replace its remaining future have been estimated as follows: (a) The expenditure has been formally
Office equipment 5 years 20%
economic benefits or service potential. approved.
Furniture and 6 years 16.7% Acquired/ 5 years 20%
fittings (b) The funding recipient has been
INTANGIBLE ASSETS developed
computer software advised.
Leasehold 6 years over the Software acquisition and development
improvements period of (c) There are no substantive
the lease Acquired computer software licenses CREDITORS AND contractual conditions for the
(16.7%) are amortised on the basis of the OTHER PAYABLES funding recipient to fulfil.
costs incurred to acquire and bring
Leasehold improvements are Short term payables are recorded (d) It is probable (more likely than not)
to use the specific software.
depreciated over the unexpired period at the amount payable. that the funded proposal will be
of the lease or the estimated remaining Costs that are directly associated completed and that our
useful lives of the improvements, with the development of software are EMPLOYEE BENEFITS commitments will crystallise.
whichever is the shorter. amortised as an intangible asset. Direct Employee entitlements that NZ On Air At 30 June forecast, funding liabilities
costs include the software development, expects to be settled within 12 months in the statement of financial position
IMPAIRMENT OF employee costs and an appropriate of balance date are measured at include both contracted liabilities and
NON-FINANCIAL ASSETS portion of relevant overheads. nominal values based on accrued uncontracted liabilities that have no
Property, plant and equipment, and Staff training costs are recognised entitlements at current rates of pay. substantive contractual conditions
intangible assets that have a finite life as an expense when incurred. These include salaries and wages unfulfilled. The amount recorded
are reviewed for impairment whenever accrued up to balance date, annual for the uncontracted liability is the
events or changes in circumstances Costs associated with maintaining leave earned to, but not yet taken amount approved by the Board.
indicate that the carrying amount may computer software are at balance date, and sick leave.
not be recoverable. An impairment expensed when incurred.
loss is recognised for the amount byNZ ON AIR STATEMENT OF PERFORMANCE EXPECTATIONS 25
GOODS AND SERVICES TAX (GST) A contingent asset is disclosed where NZ On Air has the following Operating activities includes cash
All items in the financial statements the inflow of an economic benefit is categories of financial assets: received from income sources
are presented exclusive of GST, except probable, but not virtually certain. excluding interest, and records
(a) Loans and Receivables
for receivables and payables in the the cash payments made for the
COMMITMENTS These are non-derivative supply of goods and services, and
statement of financial position, which
financial assets with fixed or funding under the NZ Media Fund.
are presented on a GST-inclusive basis. Future expenses and liabilities incurred
determinable payments that are
on contracts that have been entered Investing activities are those activities
The net amount of GST-recoverable not quoted in an active market.
into at balance date are disclosed as relating to the acquisition and
from or payable to the Inland Revenue
commitments to the extent that they After initial recognition they are disposal of long-term assets, interest
Department, is included as part of
are equally unperformed obligations. recorded at the amount due, less an received and other investments
receivables or payables as appropriate.
Commitments relating to employment allowance for credit losses. NZ On Air not included in cash equivalents.
Commitments and contingencies contracts are not disclosed. applies the simplified expected credit
are disclosed exclusive of GST. loss model of recognising lifetime Financing activities comprise those
COST ALLOCATION POLICY expected credit losses. Gains and activities relating to changes in equity.
INCOME TAX All expenditure not used to fund the losses when the asset is impaired
NZ Media Fund and Development or derecognised are recognised in CHANGES IN ACCOUNTING
NZ On Air is exempt from the
the statement of comprehensive POLICIES
payment of income tax in accordance and Support is allocated to
with s51 Broadcasting Act 1989 administration expenditure. revenue and expense. Loans and Accounting policies are changed
therefore no charge for income receivables are classified as “trade only if the change is required by
tax has been provided for. FINANCIAL INSTRUMENTS and other receivables” in the a standard or interpretation or
statement of financial position. otherwise provides more reliable
NZ On Air is party to financial
CONTINGENT ASSETS AND and more relevant information.
instruments as part of its normal (b) Held to Maturity Investments
CONTINGENT LIABILITIES operations. These financial instruments Held to maturity investments are COMPARATIVES
A contingent liability is disclosed include bank accounts, short-term assets with fixed or determinable
where funding expenditure has been trade payables and trade and other When presentation or classification
payments and fixed maturities that we
approved by the Board, but that receivables. There are no known of items in the financial statements
intend to hold to maturity. After initial
expenditure is uncontracted, and has significant concentrations of credit risks. is amended or accounting policies
recognition interest is subsequently
substantive conditions unfulfilled at are changed voluntarily, comparative
Financial assets and liabilities are accrued and added to the investment
30 June. At the point the substantive figures are restated to ensure
initially measured at fair value plus balance. A loss allowance for expected
conditions are fulfilled, the contingent consistency with the current period
transaction costs unless they are carried credit losses is recognised if the
liability is removed and the value is unless it is impracticable to do so.
at fair value through profit and loss estimated loss allowance is not trivial.
recorded as expenditure and as a
in which cases the transaction costs RELATED PARTIES
liability in the financial statements. STATEMENT OF CASH FLOWS
are recognised in the statement of
NZ On Air transacts with other
A contingent liability is also comprehensive revenue and expense. Cash and cash equivalents includes
Government agencies on an arm’s
disclosed where there is a possible cash in hand and deposits held
length basis. Any transaction
obligation or present obligation with banks with original maturities
not conducted at arm’s-length
that may, but probably will not, of three months or less.
will be disclosed in our financial
require an outflow of resources.
statements (annual report).CONTACT US HEAD OFFICE Level 2, 119 Ghuznee St PO Box 9744 Wellington New Zealand T: +64 4 382 9524 E: info@nzonair.govt.nz W: www.nzonair.govt.nz AUCKLAND OFFICE Unit B1, One Beresford Square Newton, Auckland New Zealand
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