Statement of Intent 2008 - Departmental capital intentions
Capital forecast expenditure
| Forecast | Forecast | Forecast | Forecast | |
|---|---|---|---|---|
| 2007/2008 | 2008/2009 | 2009/2010 | 2010/2011 | |
| Leasehold improvements | 16,542,143 | 18,059,664 | 21,442,954 | 9,955,000 |
| PPE under construction | 12,466,903 | 47,270,082 | 25,413,000 | 2,720,000 |
| Motor vehicles | 9,732,250 | 13,810,500 | 10,000,000 | 10,000,000 |
| Furniture and office equipment | 1,850,000 | 1,760,000 | 1,760,000 | 1,760,000 |
| IT Equipment | 7,349,299 | 160,000 | 160,000 | 160,000 |
| Software and licences Purchased | - | - | - | - |
| Software developed | - | - | - | - |
| Software under construction | 30,707,465 | 38,041,907 | 23,399,000 | 23,974,000 |
| Total | 78,648,060 | 119,102,153 | 82,174,954 | 48,569,00 |
Assets
Each year we conduct a capital expenditure planning process to ensure that:
- capital investment is targeted to meet business needs
- assets are appropriately replenished.
This process is supported by robust asset management systems, which include ongoing assessments and stocktakes of capital assets. We have programmes in place to manage the replacement of assets.
Motor vehicles are replaced every three years or 60,000 kms, photocopiers every five years and computers and other information technology peripherals every three to five years. We also maintain appropriate warranty and support provisions on all key assets.
Value for money
Like many large organisations we face cost pressures. The Ministry has a history of finding efficiencies to live within baseline. In 2005/2006 the Ministry undertook a departmental baseline review (Value for Money) to meet anticipated cost pressures from 2006/2007 - 2009/2010.
The Ministry has identified on-going cost pressures (primarily future wage increases and increasing rental costs) from 2009/2010 and has commenced a further departmental baseline review (Value for Money 2) to ensure our departmental baseline is being managed effectively. This review will also consider our asset base and how we may make capital investment to add business value and increase efficiency. For example we are considering greater use of digitisation to enhance business workflow.
Property
The Ministry operates out of 292 locations nationwide. Our extensive network of offices means we can work one-to-one in the delivery of a broad range of social services. To support our approach in 2008/2009 we will:
- continue to ensure our property locations and environments appropriately support our strategic priorities
- continue to enhance and progressively rollout new community link sites. In February 2008 we opened a new service delivery concept site (community link) in Linwood, Christchurch. From this site we provide a range of Ministry and other government services to ensure delivery of wraparound services to meet client need
- continue to progressively establish regional offices for social development to act as the hub and support sector leadership to improve social outcomes across that region. The 2008/2009 year will see continued progress in establishing these regional hubs
- conduct a re-investment programme across a range of Child, Youth and Family office space. This is designed to ensure we are able to deliver an efficient and effective service from those sites. We expect to conduct this refresh out to the end of 2009
- consider further investment in our Child, Youth and Family residential facilities to ensure they are able to appropriately meet placement demand. An additional youth justice residence, to accommodate 30 young people, is planned for the Rotorua region.
AMP Capital Properties has proposed the redevelopment of the Bowen Campus (Wellington) which accommodates the majority of our National Office staff. In February 2008 AMP Capital was granted resource consent for their proposed redevelopment. Parliamentary Services Commission has lodged an appeal against that decision in relation to concerns about the impact of the proposed redevelopment on the Parliamentary precinct. The right to lodge an appeal is an important part of the resource consent process. We will continue to consider options to ensure our future National Office arrangements support our goals to meet high standards of environmental and workplace sustainability.
