Annual Report for the year ended 30 June 2001

Departmental operations (continued)

Project payments capitalised against Crown appropriations in 2000/01 were (see table below):

	2000/01 Main estimates $000	30/6/2001 Actual $000
ANZAC Ships	88,211	72,648
Maritime helicopter	97,214	90,300
Kestrel - P3 Orion rewing	5,254	3,704
P-3 Orion autopilot	3,943	533
RNZN Bridge Simulator	614	589
STANO	582	163
Light armoured vehicles	88,122	86,127
Tactical communications	55,959	62,148
Direct Fire Support Weapon	190	17
Other projects	2,399	206
GST on imported goods and NZ payments	41,202	25,234
Total	383,690	341,669

Prices agreed for new projects approved by the Government during the financial year have been based on a competitive tender process, and contract awards have been subjected to consideration of through-life costs, quality, delivery schedule and local industrial participation.
Potential risks for all projects have been identified together with corrective actions required or taken.
All payments made have been at the contracted prices to the correct suppliers upon the achievement of agreed milestones.
ISO 9001 certification has been maintained.

The appropriation (GST inclusive) for this output class was increased by $431,000 for (see table below):

	$(000)
A fiscally neutral transfer from Output Class D2 - Audit and Assessment of Performance to meet preliminary project costs which must now be expensed and not capitalised.	166
Tender phase costs for Light Operational Vehicles	265
Total	431