Our capital intentions
Forecast capital expenditure
| Forecast 2010/2011 $'000 | Forecast 2011/2012 $'000 | Forecast 2012/2013 $'000 | Forecast 2013/2014 $'000 |
|
|---|---|---|---|---|
| Computer hardware | 9,000 | 9,000 | 9,000 | 9,000 |
| Computer software | 21,241 | 21,241 | 21,241 | 21,241 |
| Leasehold improvements | 11,046 | 11,046 | 11,046 | 11,046 |
| Motor vehicles | 8,000 | 8,000 | 8,000 | 8,000 |
| Plants and equipments | 780 | 780 | 780 | 780 |
| Residential buildings | 11,372 | 14,372 | 7,372 | 7,372 |
| Total | 61,439 | 64,439 | 57,439 | 57,439 |
Variance explanations
Residential building costs in 2010/2011 and 2011/2012 include the completion of the new Child, Youth and Family youth justice facility in the Bay of Plenty and the expansion of the youth justice facility in Palmerston North. Both facilities support increased service volumes and their costs were approved as part of Budget 2007.
The Ministry’s asset portfolio has a net book value of $367 million.
Each year we conduct a capital expenditure planning process to ensure that:
- capital investment is targeted to meet business needs
- assets are appropriately replenished.
As a Ministry we are targeting capital investment in technology to support the transformation of our services for increased effectiveness and efficiency. Our property investment supports service demand and the delivery of strong joined-up services.
Our capital planning processes are 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/60,000 kilometres, photocopiers every five years and computers and other IT peripherals every three to five years. We also maintain appropriate warranty and support provisions on all key assets.
Our property
We operate out of 300 locations nationwide. We have a property maintenance plan to ensure our property is prudently managed. We will continue to review both our National Office and regional accommodation needs to ensure all our spending provides value for money and is linked to the delivery of effective services.
Capital asset management
We have adopted the 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.
