15. Contingencies Contingent liabilities Make good clause The Commission is subject to a ‘make good’ clause in its office lease contract for the Wellington office. This clause, if invoked, would require the Commission to remove all leasehold improvements not owned by the landlord and leave the premises in a state not dissimilar to that received at the time of moving into the premises. The likelihood of this clause being invoked is unknown. The estimated cost to fulfil the clause is $70,000 (2013: same). Contingent assets The Commission has no contingent assets (2013: nil). 16. Related party transactions and key management personnel The Commission is a wholly-owned entity of the Crown and has been a party to transactions with the Crown and entities related to the Crown during the year. Significant transactions with government-related entities The Commission was provided with funding from the Crown through the Ministry of Justice of $9,396,000 (2013: $9,696,000) for specific purposes as set out in the Human Rights Act 1993 and the scope of the relevant government appropriations. The chair of the audit committee for the Commission is also an independent member and chair of the audit and risk committee for the Ministry of Justice. The revenue received from the Ministry of Justice is stated above. There were no amounts outstanding at balance date. Collectively, but not individually, significant transactions with government-related entities In conducting its activities, the Commission is required to pay various taxes and levies (such as GST, FBT, PAYE and ACC levies) to the Crown and entities related to the Crown. The payment of these taxes and levies, other than income tax, is based on the standard terms and conditions that apply to all tax and levy payers. The Commission is exempt from paying income tax. The Commission also purchases goods and services from entities controlled, significantly influenced, or jointly controlled by the Crown. Purchases from these government-related entities for the year ended 30 June 2014 totalled $233,000 (2013: $283,000), of which $17,000 (2013: $27,000) was payable at balance date. These purchases include the purchase of electricity from Genesis, air travel from Air New Zealand and postal and courier services from New Zealand Post. 89