DAP 2009/10 Final 1 - Taranaki District Health Board

DAP 2009/10 Final7.5.13 Capital Expenditure 2009/10 (operating)The capital expenditure for Year 2009/10 envisages an outlay of $5.50M. The capitalexpenditure movement against the outlay for 2008/09 is:($’000) 2008/09(Plan)2009/10(Plan)Movement(+/(-))Clinical equipment 1,800 1,600 - 200Other equipment 500 500 -Motor Vehicles 100 50 - 50Site redevelopment (minor) 1,800 1,350 -450SUB TOTAL 4,200 3,500 -700Information Technology. 1,800 2,000 + 200(HIQ Ltd)TOTAL 6,000 5,500 --500Contingency 1,000 1,000 -Overall capital expenditure is budgeted to decrease marginally in 2009/10 visa-visthe current financial year, with small movements between theexpenditure lines.Capital outlay on Information Technology is tipped to increase in the comingyearThe capital expenditure budget ($5.50M) is prioritised to remain within thebase line depreciation for 2009/10 ($8.50M), enabling it to be financedthrough internal cash accruals whilst leaving sufficient contingency funds forunplanned capital expenditure and improving residual cash reservesMinor site redevelopment activity in 2009/10 will trend down in view of theredevelopment of the inpatient facilities. The plan envisions a host of minorwork across the site, primarily in clinical wards to improve work flows, meetcompliance deficits, strengthening of structures, ventilation etc. Some capitalworks in progress during the current year is also likely to spill over to the nextfinancial year. The Board will continue to seek financial support from localcommunity trusts to progress some of the redevelopment activities proposedduring the plan period 2009/12.The proposed outlay on clinical equipment is $1.6M, mainly replacement ofobsolete and unsafe clinical equipment and continuation of a phasedprogramme for replacement of expensive theatre equipment and beds.Proposed outlay on non clinical equipment is along similar lines as the currentyear.Capital outlay proposed for Information Technology investment in HIQ Ltd (JVwith CCDHB for provision of ICT services) is increased to $ 2.0M. The majorcosts relate to the ongoing programme for replacement of desktop hardware,software upgrades, new applications and storage devices. Additionally, anoutlay of $0.2M is earmarked specifically towards strengthening the DisasterRecovery (DR) capabilities to balance risks against loss of computingservices or in the event of a natural disaster.58