Note 40. Commitments

Capital Commitments

Capital commitments, contracted at reporting date, include the Secure Mental Health Unit, the Canberra Hospital Redevelopment, University of Canberra Public Hospital, Clinical Services and Inpatient Unit Design and Infrastructure Expansion, Calvary Hospital Car Park, Aboriginal and Torres Strait Islander Residential Alcohol and Other Drug Rehabilitation Facility, an e-Healthy Future, the Canberra Hospital Essential Infrastructure and Engineering Works and other minor new works construction projects.  These have not been recognised as liabilities.

 

2015
$’000

2014
$’000

Capital Commitments - Property, Plant and Equipment

 

 

Payable:

 

 

Within One Year a

179,753

102,335

Later than one year but not later than five years

61,455

77,637

Total Capital Commitments - Property, Plant and Equipment

241,208

179,972

Total Capital Commitments

241,208

179,972

  1. The increase is due to capital works that will be continuing for 2015-16 including the Canberra Hospital Emergency Department expansion, Secure Mental Health Unit, University of Canberra Public Hospital, Calvary Public Hospital Car Park, Ngunnawal Bush Healing Farm and various other works around the Canberra Hospital and Health Services campus.

Operating Lease Commitments

The Directorate has several non-cancellable operating leases for buildings.  The operating lease agreements give the Directorate the right to renew the leases.  Renegotiations of the lease terms occur on renewal of the leases.  The Directorate also has non-cancellable operating leases with Shared Services for IT equipment.  Contingent rental payments have not been included in the commitments below.

 

2015
$’000

2014
$’000

Non-Cancellable operating commitments are committed as follows:

 

 

Within one yeara

6,940

8,343

Later than one year but not later than five years

22,779

22,911

Later than five years

249

422

Total Operating Lease Commitments

29,968

31,676

Other Commitments

Other commitments contracted at reporting date mainly relate to grants to Non-Government Organisations that have not been recognised as liabilities.

 

2015
$’000

2014
$’000

Non-cancellable other commitments are payable as follows:

 

 

Within one year

49,993

55,615

Later than one year but not later than five years b

110

38,829

Total Other Commitments

50,103

94,444

Operating Lease Commitments - Motor Vehicle

Due to a change in the Whole-of-Government car leasing arrangements with SG Fleet on 23 April 2015, all such leases for the Directorate are now classified as operating leases rather than finance leases. As a result of this change there are no prior year comparable figures.

 

2015
$’000

2014
$’000

Non-cancellable other commitments are payable as follows:

 

 

Within one year

2,471

-

Later than one year but not later than five years

2,200

-

Total Operating Lease Commitments - Motor Vehicle

4,671

-

  1. The reduction in operating commitments is due to the property lease for 11 Moore Street expiring on 31 October 2015 and a reduction in the commitment for computer asset leases.
  2. The reduction is due to the majority of current contracts with non-government organisations for provision of services expiring in June 2016.