Statement of Intent - Departmental capital intentions
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Capital forecast expenditure
|
|
Forecast |
Forecast |
Forecast |
Forecast |
|
|
2009/2010 |
2010/2011 |
2011/2012 |
2012/2013 |
|
|
$'000 |
$'000 |
$'000 |
$'000 |
|
Computer hardware |
13,650 |
12,250 |
8,975 |
9,375 |
|
Computer software |
35,776 |
22,980 |
22,370 |
18,500 |
|
Leasehold improvements |
16,445 |
12,115 |
6,180 |
6,181 |
|
Motor vehicles |
8,000 |
8,000 |
8,000 |
8,000 |
|
Plant and equipments |
1,050 |
1,050 |
1,050 |
1,050 |
|
Residential buildings |
51,408 |
30,850 |
7,500 |
6,250 |
|
Total |
126,329 |
87,245 |
54,075 |
49,356 |
Variance explanations
* Forecast computer hardware and software spending in 2009/2010 and 2010/2011 includes a range of initiatives designed to enable the Ministry's Value for Money plans.
** Leasehold improvements costs in 2009/2010 and 2010/2011 include a range of upgrades to Child, Youth and Family sites to rectify deferred maintenance.
*** Residential building costs in 2009/2010 and 2010/2011 include the construction of a new Child, Youth and Family youth justice facility in the Bay of Plenty and the expansion of the youth justice facility in Palmerton North. Both facilities support increased service volumes and their costs were approved as part of Budget 2007.
**** Capital costs may also be impacted by a proposal from AMP Capital Properties to redevelop the existing Bowen Street site (Wellington). If the project were to go ahead, this would allow the Ministry to consolidate its head office functions. We are preparing a paper on this proposed development for consideration by Cabinet in June 2009.
Assets
Each year we conduct a capital expenditure planning process
to ensure :
- 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 stock-takes of capital assets.
We have programmes in place to manage the replacement of assets. Motor vehicles are replaced every three years/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.
Capital and asset management (CAM)
We have adopted Treasury's capital asset management framework. This framework supports quality information being available for decision making, financial planning and performance monitoring purposes. We maintain a strong focus on ensuring the effective and efficient use of our capital resources.
