Annual Report for the year ended 30 June 2002

Departmental operations (continued)

Project payments capitalised against Crown appropriations in 2001/02, and recoveries from New Zealand Defence Force, were: (see table below):

Expenditure				Recoveries from NZ Defence Force
	2001/02 Main estimates $000	2001/02 Supp. estimates $000	30/6/2002 Actual $000	2001/02 Supp. estimates $000	30/6/2002 Actual $000
ANZAC Ships	38,883	47,638	32,944	37,336	37,336
Maritime helicopter	28,705	63,704	45,787	81,170	81,170
Kestrel - P3 Orion rewing	7,954	2,050	2,050	3,332	3,332
P-3 Orion autopilot	510	3,921	2,531	98	1,446
RNZN Bridge Simulator	-	76	-	10	10
Light armoured vehicles	28,140	5,944	4,318	86,497	86,497
Tactical communications	60,334	54,028	40,469	70,144	70,144
Other projects	5,807	-	20	1,484	137
GST on imported goods and NZ payments	14,158	35,424	34,350	-	-
Total	184,491	212,785	162,469	280,071	280,072

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 $1,008,000 for (see table below):

	$(000)
C130 aircraft Life of Type Study, funded by New Zealand Defence Force through Revenue Other	1,114
Expense transfer of tender phase costs for Light Operational Vehicles from 2001/02 to 2002/03	(218)
GST change on above adjustments	112
Total	1,008