Financial Statement: Statement of Commitments

As at 30 June 2006

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.

30/06/05
Actual
$000

 

30/06/06
Actual
$000

 

Non-cancellable accommodation leases

 

7,091

Less than one year

8365

6,276

One to two years

6437

13,702

Two to five years

11992

5,781

More than five years

5009

32,850

 

31,803

 

Commitments arising from other contracts

 

20,876

Less than one year

21,300

15,850

One to two years

17,449

22,255

Two to five years

19,511

More than five years

58,981

 

58,260

 

Capital commitments

 

136,272

Less than one year

169,467

1,370

One to two years

7,140

Two to five years

More than five years

137,642

 

176,607

229,473

Total commitments

266,670



The increase in capital commitments is largely due to the contracts entered into for the construction of Otago Region Corrections Facility, Spring Hill Corrections Facility, deferred maintenance and the building of additional beds at existing sites to meet increase prisoner demand.

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