Summary of key facts relating to the Defence Capital Asset Management EXG review released in December 2006.
Pages comprising this Information Release
There are eighteen pages comprising the EXG Reviews (December 2006, March 2007 & April 2007) Information Release:
- Home - EXG Reviews Information Release
- Value for Money in the Land Transport Sector (26 April 2007)
- Care and Protection Systems (CYF) (20 December 2006)
- Central Agencies (20 December 2006)
- Capital Asset Management (20 December 2006) - Includes SAHA International and Martin Jenkins & Associates Reports released subsequently on 8 March 2007.
- Information and Communications Technology (20 December 2006)
- Employment Relations in the State Sector (20 December 2006)
- Enhancing Productivity through People Management Practices (20 December 2006)
- Defence Capital Asset Management (20 December 2006)
- [This Page] Fact Sheet: Defence Capital Asset Management EXG Review
- Establishment of EXG Reviews (21 April 2006) - Includes the terms of reference.
What was the main purpose of the review?#
The main objective of the review was to achieve better capital asset management within Defence by improving systems and procedures, and thereby achieving better value for money.
What were the main findings of the review?#
The review made five main recommendations for decision by ministers and a larger number of recommendations for decision within Defence. The report provides full details, but in summary:
For ministers:#
- Outcomes – being clear about what capital investments are intended to achieve (and what they are actually achieving)
- Annual Spending Programme – dealing with capital and operating expenditure programmes together instead of making separate bids
- Capital Programmes and Delegations – changing thresholds to reduce the number of relatively minor investment decisions being brought to Cabinet
- Foreign Exchange – exploring options for a more effective approach to hedging
- Examine options for better management of depreciation.
For Defence Departments:#
- Asset Performance - developing a strategic management plan for each major asset
- Whole of Life Management – implementing a number of recommendations aimed at fine-tuning existing procedures
- Personnel Forecasting and Management – developing and extending current methods.
What changes will be made as a result? What will be the benefits?#
All recommendations will be implemented. This will result in a situation where the defence and security sector works more efficiently and cohesively, the objectives of acquiring assets are clearer, prioritisation of expenditure is rational and coherent, assets are well managed throughout their lives and operated to maximum effect.
In what areas did the review confirm that current practice is appropriate and providing value-for-money?#
DCAMP concluded that, in the main, adequate asset management processes, structures and frameworks within Defence either have already been, or are being, put in place within Defence, albeit at different levels of maturity and stages of development.
What are the next steps?#
Defence management will consider and approve an implementation plan for all the approved recommendations. This will be completed early in the New Year.