Statement of Commitments
AS AT 30 JUNE 2016
| 2015 Actual | 2016 Actual $000 | |
|---|---|---|
| CAPITAL COMMITMENTS | ||
| 60,328 | Buildings | 20,337 |
| 26 | Motor vehicles | 2,042 |
| 3,940 | Plant and equipment | 20 |
| - | Service concession arrangements | 236,866 |
| 5,739 | Intangibles | 1,804 |
| 70,033 | Total capital commitments | 261,069 |
| NON-CANCELLABLE OPERATING LEASE COMMITMENTS | ||
| 14,092 | Less than one year | 12,067 |
| 36,642 | One to five years | 34,689 |
| 20,265 | More than five years | 18,575 |
| 70,999 | Total non-cancellable operating lease commitments | 65,331 |
| 141,032 | Total commitments | 326,400 |
Capital commitments
Capital commitments are the aggregate amount of capital expenditure contracted for the acquisition or construction of buildings, service concession arrangements, motor vehicles, plant and equipment, and intangible assets that have not been paid for or not recognised as a liability at balance date.
The service concession arrangements capital commitment relates to the construction of a new maximum security facility at Auckland Prison. The facility will be designed, financed, built and maintained through a Public Private Partnership (PPP) with Next Step Partners Limited. Construction commenced in October 2015 and is on target for completion in late 2017.
Non-cancellable operating lease commitments
The Department leases premises at many locations throughout New Zealand.
Lease commitments include a lease arrangement for land under the Tongariro prison following the sale under treaty settlement on 30 June 2015. The prison and associated ancillary buildings were not part of the sale agreement and therefore remain owned by the Department.
The annual lease rentals are subject to regular reviews, usually ranging from two years to three years. The amounts disclosed above as future commitments are based on current rental rates.