Statement of Intent 2009-2012

The Ministry's Capital intentions

Forecast details of Departmental Capital expenditure for the period 2009-2012

	2009/10 Forecast $000	2010/11 Forecast $000	2011/12 Forecast $000
Buildings	31,746	35,518	18,455
Plant and equipment	2,400	2,500	2,400
Furniture and fittings	8,650	8,650	4,650
Motor vehicles	950	1,150	1,150
Computer hardware	2,500	2,500	1,500
Computer software	14,266	11,300	2,000
Total	60,512	61,618	30,155

Over the next few years the Ministry’s capital programme will focus on accommodating NZ Inc’s and NZAID’s evolving requirements offshore, and modernising the ICT system, eg global wide area network and secure mobile computing.

Successful capital asset management will be achieved by “making the right choice” and “doing the right thing well” supported by specialist staff that will ensure a high level of asset management practices. 

In managing its capital assets the Ministry’s standard practices are used to ensure that: major capital projects are aligned with business objectives (strategy) and supported by needs analysis; options are identified; business cases are prepared that include costs and benefits; peer or independent review is sought at the selection phase and/or during the implementation phase depending on risk assessment and post-implementation review to verify benefits realisation.  These practices are encapsulated within a governance framework.

Success measures include:

• Independent Quality Assurance: no significant issues reported
• Project Post-Implementation reviews: benefits substantially realised
• Project Financial: project implemented within budget
• Appropriation: capital appropriation not exceeded.
  

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