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Appendix 10 - Purchasing and assets management
The major strategic issue with respect to ABS asset management is the continued effective management of its information and technology assets, totalling almost $100 million at 30 June 2005.
The ABS develops approximately $16 million of internally generated software each year and purchases around another $2 million of vendor supplied software. In addition, the ABS purchases between $5 million and $8 million of information technology hardware annually.
The current strategies to manage this investment are:
The ABS maintains an asset register to address management, statutory reporting and user requirements.
The ABS’ assets are an integral element in the conduct of its business, and are part of the combination of resources required to enable cost effective delivery of services.
The asset register of the ABS underpins planning policies, analysis of financial programs, capitalisation, and reviews of performance against defined objectives.
For recognition as an asset, the ABS has an expenditure capitalisation threshold of $2,000 for general assets and $1,000 for information and technology assets including software. Assets expenditure greater than or equal to these amounts are capitalised and recorded on the assets register. At 30 June 2005, all ABS assets are recorded at fair value.
At 30 June 2005 the ABS’ major assets totalled nearly $120 million and are made up of the following major asset classes:
TABLE 10.1: ABS MAJOR ASSETS AT 30 JUNE 2005
The disclosed asset figures are net of accumulated depreciation. Depreciation is determined on a straight-line basis for all fixed assets at a rate to allocate the depreciable amounts over the useful lives of the assets.
As part of its overall management strategy, the ABS actively manages its disposals program to ensure it receives value for money outcomes from assets that have reached the end of their economic or useful life.