Financial Statement: Statement of Commitments

As at 30 June 2005

The Department has long-term leases on premises at many locations throughout New Zealand. The annual lease rentals are subject to regular reviews, usually ranging from two years to three years. The amounts disclosed below as future commitments are based on current rental rates.

Operating leases include lease payments for premises, computer equipment, telephone exchange systems and photocopiers.

30/06/04 Actual $000		30/06/05 Actual $000
	Non-cancellable accommodation leases
5,254	Less than one year	7,091
3,837	One to two years	6,276
8,332	Two to five years	13,702
1,740	More than five years	5,781
19,163		32,850
	Commitments arising from other contracts
28,842	Less than one year	20,876
12,577	One to two years	15,850
22,273	Two to five years	22,255
—	More than five years	—
63,692		58,981
	Capital commitments
50,740	Less than one year	136,272
91	One to two years	1,370
—	Two to five years	—
—	More than five years	—
50,831		137,642
133,686	Total commitments	229,473

The increase in accommodation commitments is largely due to the renewal of leases on premises occupied by the Community Probation Service and Head Office Groups.

The increase in capital commitments is largely due to the contracts entered into for the construction of Auckland Region Women’s Corrections Facility, Spring Hill Corrections Facility and the additional 493 bed programme at various existing sites.

The accompanying accounting policies and notes form part of these financial statements.