Our capital intentions
Forecast capital expenditure
|
|
Forecast 2012/2013 $’000 |
Forecast 2013/2014 $’000 |
Forecast 2014/2015 $’000 |
Forecast 2015/2016 $’000 |
|
Computer hardware |
12,420 |
17,977 |
13,857 |
10,907 |
|
Computer software |
17,821 |
17,821 |
17,821 |
17,821 |
|
Leasehold improvements |
13,840 |
11,046 |
12,046 |
13,046 |
|
Motor vehicles |
8,000 |
8,000 |
8,000 |
8,000 |
|
Plant and equipment |
780 |
780 |
780 |
780 |
|
Residential buildings |
4,578 |
7,372 |
6,372 |
5,372 |
|
Total |
57,439 |
62,996 |
58,876 |
55,926 |
Variance explanations
Overall capital expenditure levels are relatively stable over the above forecast period.
The Ministry’s asset portfolio had a net book value of $352 million as at 30 June 2012. Each year we conduct a capital expenditure planning process to ensure that:
- capital investment is targeted to meet business needs
- assets are appropriately replenished.
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 on-going assessments and stocktakes of capital assets.
We have programmes to manage the replacement of assets. Motor vehicles are replaced on average 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.
We will collaborate across government agencies where appropriate, for efficiencies in the use of property to deliver government 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.
