Departmental Capital and Asset Management Intentions

Capital expenditure intentions

The Department is facing a high level of demand for capital expenditure.  An annual capital expenditure planning process is conducted to ensure that the Department:

• invests in capital items that are of the highest priority
• replaces assets at the optimum time
• meets the needs of the organisation.

The capital plan is monitored monthly, and reviewed twice during the year.  The review is completed to ensure that approved capital expenditure projects continue to meet the departmental requirements and that the needs of new high priority projects are met.

Capital Expenditure Forecast

	Forecast 2009/10 $m	Forecast 2010/11 $m	Forecast 2011/12 $m	Forecast 2012/13 $m
Leasehold	3.3	3.7	3.4	3.5
Motor vehicles	2.5	1.9	2.4	0.7
IT equipment	3.2	3.2	3.2	3.2
IT software	15.8	10.0	4.0	4.0
Other	1.0	1.0	1.0	1.0
Total	25.8	19.8	14.0	12.4

Capital Asset Management

The Department is implementing the Treasury initiative around Capital Asset Management (CAM) and, during the 2009/10 year, will complete management plans for the following major asset categories:

• property
• IT equipment
• motor vehicles.

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