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Spending rules for Crown entities

Crown entities don’t require an appropriation to spend, so they’re not bound by the same approval and reporting requirements as public service departments.

Who is a Crown entity?

Crown entities include:

  • Crown agents
  • autonomous Crown entities
  • independent Crown entities
  • Crown entity companies and
  • Crown entity subsidiaries.

Central government organisations – Te Kawa Mataaho Public Service Commission

Financial rules for Crown entities

Crown entities don’t require an appropriation to spend, so they’re not bound by the same approval and reporting requirements as public service departments.

The Crown Entities Act 2004 provides the governance framework for Crown entities:

  • All decisions, including funding and capital expenditure cost (CAPEX) investment funding approvals relating to the operation of Crown entities, are made by their Board in accordance with the Crown Entities Act.
  • Funding is through a monitoring agency. Crown entities’ requests for additional funding are processed by their monitoring public service department. These requests may form part of the overall bids to Treasury by these departments under their respective vote.
  • Some crown agencies are funded through sales of services (revenue) to the general public.
  • Under section 107 (1) of the Crown Entities Act 2004, the Minister of State Services and the Minister of Finance may jointly direct Crown entities to support a 'whole of government' approach.

Crown Entities Act 2004 – New Zealand Parliamentary Counsel Office Te Tari Tohutohu Pāremata

Things to know in a co-location

If a Crown entity is a participating agency in a co-location, these different rules may impact any upfront funding agreements or capital injection requirements. They may also impact on the timing required to make investment decisions.

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