Note 13: Provisions

Actual
2011
$000
Actual
2012
$000
0 Onerous contracts 59
0 Lease make good 150
0 Total provisions 209
Onerous
contracts
$000
Lease make
good
$000
Total
$000
Balance at 1 July 2011 0 0 0
Additional provisions made 59 150 209
Amounts used 0 0 0
Balance at 30 June 2012 59 150 209

Onerous contracts

The provision for onerous contracts arises from a non-cancellable lease where the unavoidable costs of meeting the lease contract exceed the economic benefits to be received from it. The Office expects to vacate its Audit NZ Wellington premises at the beginning of June 2013, when the OAG and Audit NZ Wellington offices will move into one location. The current Audit NZ Wellington office lease expires on 30 June 2013.

Lease make good

In respect of one of its leased premises, the Office is required at the expiry of the lease term to make good any damage caused to the premises.

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