skip banner The Australian Government Department of Defence

Minister | Navy | Army | Air Force | Department

2002-03 Financial Statements

Department of Defence
Notes To And Forming Part Of The Financial Statements
for the year ended 30 June 2003
2002-03 2001-02
$'000 $'000
Note 31: Future Commitments
Defence has a procurement process relating to major projects. Once a project has been approved to proceed, tenders are called, evaluated and contracts awarded. The period between approval for the project to proceed and the awarding of contracts is the period of "future commitment".  
Once a contract has been awarded, a "future commitment" becomes a "capital commitment" and is reported in the Schedule of Commitments. The amounts involved in "future commitments" are presented in phases over financial years in the same way as the Schedule of Commitments.    
Maturity profile for future commitments
One year or less 1,174,813 1,060,223
From one to five years 3,865,347 3,761,364
Over five years 2,677,270 2,966,062
Total future commitments* 7,717,430 7,787,649
*Commitments are GST inclusive where applicable